Kazakh banks expand SME lending as first-half overdue debt rises 25.3%
This digest was compiled by AI from multiple sources — links to the originals are below.
Kazakhstan's banking sector overdue debt rose 25.3% in the first half of 2026 to 3.3 trillion tenge, while banks simultaneously expanded SME lending. NPLs over 90 days across the sector increased 17.2% to 1.85 trillion tenge, and SME NPLs jumped 40.1% to 473.5 billion tenge. Even as corporate loan quality improved, SME arrears of 1-30 days surged 157.7%.
Key Facts
- Overdue debt in Kazakhstan's banking sector reached 3.3 trillion tenge in the first half of 2026, up 25.3% from the start of the year.
- NPLs over 90 days across the sector rose 17.2% to 1.85 trillion tenge, lifting the NPL share to 4.12% of the loan book.
- SME NPLs over 90 days jumped 40.1% to 473.5 billion tenge, and SME arrears of 1-30 days surged 157.7% to 286 billion tenge.
- Banks issued 2.2 trillion tenge in new business loans in June, with new SME lending up 61.7% year-on-year.
- Banks earned 201 billion tenge net profit in July, up 26% from June's 159.9 billion, bringing January-July profit to 1.39 trillion tenge.
SME Lending and Arrears
Kazakhstan's loan portfolio reached 44.75 trillion tenge as of July 1, up 3% since the start of the year, with SME loans rising 9.6% to 12.17 trillion tenge. National Bank data show the SME loan portfolio reached 7.8 trillion tenge on July 1, 2026, up 14% year-to-date and 3.3% in June alone. SME NPLs over 90 days increased 40.1% to 473.5 billion tenge, and SME arrears of 1-30 days surged 157.7% to 286 billion tenge. The share of SME loans without overdue payments fell from 95.2% to 92.8%, and NPL coverage declined from 70.2% to 64%. In June banks issued 2.2 trillion tenge in new business loans, 32.7% more than a year earlier, while new SME lending rose 61.7%.
Corporate and Retail Loan Quality
Corporate NPLs fell 20.8% to 131.2 billion tenge, and corporate arrears of 61-90 days declined 98.7% in the first half. Retail loans grew 4.3% to 25.85 trillion tenge, but retail NPLs rose 15.8% to 1.24 trillion tenge and 1-30 day arrears increased 41.1% to 689.3 billion tenge. The top five banks accounted for 69.2% of total assets, 75.8% of the loan portfolio and 72.7% of client deposits as of July 1.
Bank Profit Recovery
Kazakh banks earned 201 billion tenge net profit in July, a 26% increase from June's 159.9 billion tenge and 23% below July 2025. Monthly profit peaked at 239.8 billion tenge in May before falling to 159.9 billion in June. Cumulative profit from January to July reached 1.39 trillion tenge. Interest income rose 3% month-on-month to 906 billion tenge in July, while non-interest income increased 9% to 11.4 trillion tenge.
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Kazakh banks expand SME lending as first-half overdue debt rises 25.3%
