Specialists of the State Statistics Committee associate the record growth in income from industry for the republic with the activities of commercial banks. They accounted for about 97% of the increase in total profit of organizations in the financial sector.
Organizational expenses also increased in 2022, but to a lesser extent. They are estimated by the National Statistics Committee at 67.1 billion soms, which is one and a half times more than in 2021. Thus, the net profit (positive balanced financial result) was at the level of about 39 billion soms . This is almost twice as much as in 2021.
In local expert circles, they argue that the sharp increase in bank income is associated with foreign exchange transactions. Last year, a large number of transactions were carried out in Kyrgyzstan with the exchange of soms, rubles and dollars at the market rate. The country has maintained a strong demand for reserve currencies. The National Bank was forced to impose temporary restrictions on the export of dollars in cash and to carry out foreign exchange interventions in order to prevent jumps in exchange rates.
A tangible part of the sector’s profits came from financing projects in the economy. The loan portfolio of sector organizations in 2022 exceeded 238.5 billion soms. Despite this, the weighted average rate of loans issued in national currency remains quite high and amounts to around 17.8% per year.
Banks account for 85.6% of total loans issued in 2022 in Kyrgyzstan. Most often and most importantly, representatives of the commercial sector asked for money from them and other financial organizations (26% of the total volume of loans). Another 20% represented consumer loans. 18% of the total loans were intended for the development of agriculture, 11% were borrowed under a mortgage, and 6.5% – for the construction of certain facilities.
In turn, the return on assets of the financial sector of the economy of the Kyrgyz Republic as a whole amounted to 4.7%. Its highest level was observed in pawnbrokers (14.3%) and microcredit organizations (9.7%), while it reached 5.8 in commercial banks.
In total, according to the National Statistics Committee of the Kyrgyz Republic, 635 organizations worked in the financial sector of the economy, including the National Bank, 23 commercial banks, 594 non-bank financial and credit organizations, 15 insurance companies and two investment funds. . The vast majority of them are considered profitable. In 2022, only around 14% of organizations in the financial sector suffered losses.
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