Financial Crime World

Kazakhstan’s Banking Sector Ends 2020 with Positive Results, Despite Pandemic

Almaty, Kazakhstan - The country’s banking sector has completed 2020 with a strong performance, thanks to anti-krisis measures implemented by the government.

Key Highlights

  • Number of banks operating in the country decreased by 5,245 (from 271 to 26) due to the revocation of Tengri Bank JSC’s license in September 2020.
  • Sector’s assets grew by 16.4%, reaching 31,171.7 billion tenge.
  • Highly liquid assets of banks reached 12,650 billion tenge or 40.6% of total assets.

Asset Growth

The sector’s assets grew significantly in 2020, with a significant increase in:

  • Deposits placed in other banks (95%)
  • Loan portfolio growth (7.1%)

The loan portfolio accounted for the largest share of assets at 47.6%, followed by:

  • Securities (20.0%)
  • Deposits placed in other banks (14.4%)

Liquidity

Highly liquid assets of banks reached 12,650 billion tenge or 40.6% of total assets, representing a 37.9% increase in 2020.

The majority of these highly liquid assets were held by:

  • Deposits in the National Bank (47.8%)
  • Government securities (25.1%)
  • Notes of the National Bank (15.4%)

Loan Growth

Loans to the economy increased by 5.5%, driven mainly by growth in loans to:

  • Small and medium enterprises
  • Individuals

However, loans to large business entities decreased by 6.5% due to a slowdown in economic activities caused by quarantine restrictions and reduced foreign trade.

Key Performance Indicators

The banking sector’s key performance indicators showed positive dynamics throughout 2020, with highly liquid assets increasing significantly and risk-free asset portfolio growing.

The growth was mainly driven by an increase in:

  • Deposits in the National Bank (87%)
  • Government securities of the Ministry of Finance (52%)

“The country’s banking sector has demonstrated resilience in the face of the pandemic, thanks to anti-krisis measures implemented by the government,” said [Name], [Title]. “The sector’s assets have grown significantly, and its liquidity remains strong, allowing it to support economic growth and stability.”

Conclusion

Overall, the Kazakhstan banking sector ended 2020 with positive results, indicating its ability to withstand the challenges posed by the pandemic.