Copyright astanatimes
ALMATY – Kazakhstan’s banking sector continues to demonstrate solid performance with total net profit reaching 2.1 trillion tenge (approximately US$3.9 billion) for the January-September 2025 period, according to data from the Agency for Regulation and Development of the Financial Market. This represents a 10.6% increase compared to the same period last year, reflecting stable profitability and strong credit expansion across the economy, reported the agency’s press service on Nov. 3. As of Oct. 1, 23 second-tier banks operate in Kazakhstan, including 15 with foreign participation and 10 subsidiaries of international financial groups. The sector’s total assets rose to 67 trillion tenge (US$124 billion), increasing by 0.6% in September and 8.9% since the beginning of the year. The primary driver of growth was the loan portfolio, which expanded to 41.6 trillion tenge (US$77 billion). High-liquidity assets account for 28.4% of total assets, ensuring banks can fully meet client obligations. Credit growth and economic lending Lending to the real economy reached 38.7 trillion tenge (US$71.7 billion), up 1.8% from the previous month and 14.6% since the start of the year. Loans in national currency dominate, representing over 91% of all credit. Lending to businesses grew 2.5% in September to 14.7 trillion tenge (US$27.2 billion), reflecting robust demand from large enterprises, SMEs, and individual entrepreneurs. The industrial, trade, and construction sectors led the expansion, with notable double-digit growth also observed in agriculture, transport, and the information and communication industries. The average interest rate for business loans in tenge stood at 21.6%, with rates averaging 19% for large corporations, 19.2% for SMEs, and 31.3% for individual entrepreneurs. Stable asset quality The credit quality of the banking sector remains steady. As of Oct. 1, the share of non-performing loans over 90 days was 3.5%. Within the business segment, NPLs accounted for 2.3%, while the share of overdue household loans stood at 4.5%. The coverage ratio for non-performing loans remained strong at 63.6%, reflecting prudent risk management practices. Deposits, liquidity and capital strength Deposits from households and businesses continued to grow, reaching 43.4 trillion tenge (US$80 billion), up 1.5% for the month. Deposits in national currency climbed 3.6% to 34.5 trillion tenge (US$63.9 billion), while foreign currency deposits declined 5.6% to 9 trillion tenge (US$16.7 billion). Consequently, the dollarization level fell to 20.6%, down from 22.5% at the start of the year. Deposits from legal entities totaled 19 trillion tenge (US$35.2 billion), while household deposits stood at 24.5 trillion tenge (US$45.4 billion). Average interest rates on tenge deposits were 15.4% for corporate clients and 14.4% for individuals. The banking system’s return on assets reached 4.4%, and return on equity stood at a robust 29.9%, underlining continued efficiency and profitability within Kazakhstan’s financial sector.
