About Condition of Kazakhstan's Banking Sector as of 1 September 2025
As of 1 September 2025, the banking sector of the Republic of Kazakhstan was represented by 23 second-tier banks, where 15 are owned by foreigners, including 10 subsidiaries.
Assets of the banking sector as of 1 September 2025, totaled 66.6 trillion KZT, up by 2.4% over August 2025 (an increase of 8.3% since the beginning of 2025), mainly due to a 2.7% increase in the loan portfolio to 40.9 trillion KZT.
Highly liquid assets of second-tier banks made 19.5 trillion KZT, or 29.3% of assets, allowing the banks to service their liabilities in full.
Loans to the economy issued by second-tier banks grew by 2.4% in August 2025 to 38.0 trillion KZT (a 12.7% increase since the beginning of 2025). Loans in national currency increased by 2.6% to 34.8 trillion KZT, while loans in foreign currency increased by 1.1% to 3.2 trillion KZT.
As a result, share of KZT loans as of 1 September 2025 made 91.6% (as of 1 January 2025, it was 91.2%).
Loans to businesses expanded by 1.4% in August 2025 to 14.3 trillion KZT (a 9.4% increase since the start of 2025), first of all due to a 1.5% increase in loans issued for investments and purchase of securities, reaching 3.7 trillion KZT. Due to early repayments, loans to large businesses contracted by 1.6% to 5.1 trillion KZT, while loans to SMEs increased by 2.0% to 6.3 trillion KZT. Loans to individual entrepreneurs expanded by 5.6% over the month to 2.9 trillion KZT (a 26.3% surge since the beginning of 2025).
In sector breakdown, for the first 8 months of this year, growing loans were reported almost in all sectors: industry – by 1.1% to 4.7 trillion KZT, trade – by 3.4% to 3.9 trillion KZT, agriculture – by 5.0% to 526 billion KZT, construction – by 1.1% to 756 billion KZT, and information and communications – by 1.5% to 193 billion KZT.
In August 2025, new loans totaling 1.7 trillion KZT were issued to businesses. Along with that, for the first 8 months of 2025, this figure made 12.1 trillion KZT, an 8.8% increase compared to the same period in 2024.
Average weighted interest rate on loans issued to businesses in national currency at the end of August 2025 was 21.5%. Average weighted interest rate on KZT loans to large businesses was 18.9%, to SMEs – 19.0%, and to individual entrepreneurs – 31.3%.
Loans to the general public totaled 22.7 trillion KZT, an increase of 3.1% over the month (a 14.7% growth since the beginning of 2025). Within the structure of loans to the general public, consumer loans rose by 2.1% to 16.0 trillion KZT.
Mortgage loans increased by 2.5% over the month to 6.6 trillion KZT (a 9.0% growth since the start of 2025) due to a 3.8% expansion in the portfolio of mortgage loans issued under market terms to 2.1 trillion KZT.
In August 2025, new loans issued to the general public totaled 1.8 trillion KZT. For the first 8 months of 2025, this figure reached 12.9 trillion KZT, a 13.1% increase year-on-year.
The average weighted interest rate on household loans issued in national currency in August 2025 was 19.3%. Average weighted interest rate on KZT-denominated mortgage loans made 8.6%, and on consumer loans it was 21.5%.
Quality of the loan portfolio remains high. As of 1 September 2025, level of loans overdue for over 90 days (NPL90+) in the banking sector made 3.5% of the loan portfolio, or 1.4 trillion KZT, remaining at the same level as the previous month.
In business loans, NPL90+ loans accounted for 2.2% or 364 billion KZT (as of 1 January 2025, it was 2.1% or 304 billion KZT).
Share of troubled debt under loans to the general public for August 2025 made 4.5%, or 1,071 billion KZT (as of 1 January 2025, it was 3.8%, or 790 billion KZT).
Provision coverage of non-performing loans remains high, at 65.4% (as of 1 January 2025, it was 67.0%).
Liabilities of the banking sector widened by 2.3% in August 2025 to 56.9 trillion KZT (up by 8.0% since the beginning of 2025), mainly due to a 0.8% increase in retail deposits to 26.1 trillion KZT and a 22.5% growth of repo transactions to 2.5 trillion KZT.
Resident deposits with depository institutions increased by 1.0% in August 2025 to 42.8 trillion KZT, first of all due to a 1.0% increase in the national currency deposits to 33.3 trillion KZT.
Foreign currency deposits inched up by 0.8% to 9.5 trillion KZT. As a result, dollarization rate as of 1 September 2025 was 22.2% (22.5% as of 1 January 2025).
Corporate deposits edged up by 0.8% in August 2025 to 18.7 trillion KZT, mainly due to a 2.1% increase in foreign currency deposits to 5.1 trillion KZT. Retail deposits expanded by 1.1% to 24.1 trillion KZT, driven by a 1.5% increase in national currency deposits to 19.7 trillion KZT.
Average weighted interest rate on fixed-term deposits in national currency held by non-bank legal entities in August 2025 was 15.4% (as of 1 January 2025 – 14.0%), while for deposits held by the general public it was 14.3% (as of 1 January 2025 – 13.2%).
Equity capital of banks grew by 3.1% in August 2025 to 9.8 trillion KZT (a 10.1% increase since the beginning of 2025), primarily due to an increase in retained earnings for the current year. As of 1 September 2025, core capital adequacy ratio (K1) was 19.7% (as of 01.01.2025: 20.4%), and equity capital adequacy ratio (K2) was 21.1% (as of 01.01.2025: 22.0%), which significantly exceeds statutory standards and ensures coverage of potential risks in the banking sector.
For January-August 2025, net profit of banks amounted to 1,864 billion KZT, a 14.7% increase compared to the same period in 2024. Return on banking assets (ROA) as of 1 September 2025 was 4.5% (4.6% as of 01.08.2025), return on equity (ROE) made 30.8% (31.5% as of 01.08.2025).
External Communications Directorate