ASTANA, Kazakhstan, February 19. Banking indicators in Azerbaijan, Georgia, Kazakhstan, and Uzbekistan are forecasted by S&P to stay stable in 2025, reflecting the stability seen in 2024, Trend reports via S&P Ratings.
S&P is betting on low double-digit growth in lending and a steady ship when it comes to asset quality, which should keep profitability and capital levels on the up and up.
"Favorable economic growth prospects in the region, high demand for lending, especially in the retail segment, strong funding and liquidity metrics, as well as stable capital buffers amid solid profitability, will support credit ratings in 2025," says S&P.
The key risks include increased geopolitical tensions, a slowdown in the global or regional economy that could be more pronounced than expected in the baseline scenario, aggressive growth in retail lending, rapid housing price growth that may exacerbate imbalances, as well as other emerging risks related to digitalization, artificial intelligence, climate change, and cyber threats.
Regulation, supervision, and governance of the banking sectors in the region have undergone changes, but they still remain less transparent and predictable compared to what is observed in developed markets.
The company also mentioned that regulatory oversight has noticeably strengthened in Kazakhstan and Azerbaijan in recent years.
Standard & Poor’s (S&P) is a subsidiary of the American corporation S&P Global, specializing in financial market analytics. Along with Moody’s and Fitch Ratings, it is part of the "big three" international credit rating agencies. The company was formed in 1941 as a result of the merger of Standard Statistics Company and Poor’s Publishing Company. It is well-known for creating the S&P 500 American stock index.