In January there is a seasonal decrease in loans issued to the economy by 1.3%. In January, loans of legal entities decreased by 1.7% mom. In the retail lending sector there was a slight decrease of 0.4% mom. Reduction of loan portfolios in January was observed in almost all banks. Without taking into account the strengthening of the tenge in January, loans decreased by 0.6%. The quality of sector loans has slightly worsened: the share of loans with arrears over 90 days increased by 0.5pp per month. and amounted to 9.8%.
The level of provisioning of the sector in January increased by 1.5pp and amounted to 17.2%. It is worth noting that the main contribution (46%) to increase the provisioning of the banking sector was provided by three banks that previously received preferential financing under the program for improving the banking sector. Also, the increase in provisions and the reassessment of the loan portfolio of banks may be influenced by the transition to accounting in accordance with IFRS 9.
The outflow of deposits from the banking system in January increased and amounted to 2.2%. Deposits of legal entities decreased by 3.4% mom, deposits of individuals showed a slight decrease of 0.8% mom. To a large extent, the outflow of deposits was affected by the reduction in non-bank deposits placed with the NBK. By the results of the month, dollarization was 46% (for comparison, in December - 48%), with a decrease of 1.6pp. Excluding the strengthening of tenge in January, deposits showed a decrease of 0.98%.
Indicators of profitability of the banking sector, against the background of lower rates on the money market, showed a slight change - net interest margin +0.03pp, spread fell by 0.01pp. In January, the banking sector takes a profit of KZT54.9 billion. This result is 39% more than the result of the same period in 2017.
- Monetary policy and FX market;
- Assets of the banking sector, deposits of the banking sector;
- Loans of the banking sector and credit to economy;
- Banking sector's liquidity;
- Banking sector's profitability;
- Top 10 banks major changes.
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