BAKU, Azerbaijan, October 28. Bank lending in Kazakhstan's economy made up 21.1 billion tenge or $45.05 million (month-over-month (MoM) growth of two percent, and year-over-year (YoY) growth of 24.4 percent), despite a dropping loan activity of Russian banks, a high database in 2021, as well as the continued banking and borrowing uncertainty regarding the prospects for economic development, Trend reports referring to the National Bank of Kazakhstan.
Household lending increased by 2.5 percent MoM, thus making the major contribution to the loan growth. Consumer lending of 7.197 billion tenge ($15.37 billion), despite a slight slowdown, maintains high growth rates (of 27.7 percent YoY, and 2.3 percent MoM). Mortgage lending reached 4.277 billion tenge ($9.1 billion), up by 47 percent YoY, and by 3.3 percent MoM.
Over two-thirds of the loan portfolio growth was ensured by tenge loans to individuals. The loan portfolio of legal entities increased by 1.3 percent over the month.
Credits in the national currency totaled 19.3 billion tenge ($41.2 billion), rising by 1.8 percent MoM. Out of the overall amount, loans for legal entities reached 6.28 billion tenge, $13.4 billion (growth of 0.4 percent), for individuals –13.05 billion tenge, $27.87 billion (an increase of 2.5 percent).
Loans in foreign currency amounted to 1.769 billion tenge ($3.77 billion), growing by 4.4 percent due to their currency revaluation. Loans for legal entities made up major part of the contribution to foreign currency borrowings, which increased by 4.4 percent. Foreign currency credits for individuals decreased by 0.7 percent, continuing the downward trend of decline for the seventh month in a row. As a result, the share of loans in tenge accounted for 91.6 percent at the end of September 2022 (89.7 percent – in December 2021).
In September 2022, there was an outpacing growth in the short-term loan rates over long-term ones. Short-term loans increased by 4.2 percent MoM, while long-term loans – by 1.6 percent.
Meantime, small business lending reached 4.228 billion tenge ($9.03 billion), growing by 4.7 percent MoM, and 32.2 percent YoY.
In September 2022 (compared to August), the average weighted interest rate on tenge loans issued to non-bank legal entities and individuals have not changed and formed at the level of 16.2 percent and 17.8 percent respectively.