S&P predicts Kazakh banking sector growth

Kazakhstan Materials 10 February 2023 12:18 (UTC +04:00)
Emin Sevdimaliyev
Emin Sevdimaliyev
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BAKU, Azerbaijan, February 10. Kazakh banking sector is expected to continue its post-COVID recovery in 2023, Trend reports, citing the S&P Global report.

The recovery will be supported by favorable economic growth prospects despite increased geopolitical tensions in the region.

S&P Global expects the banks to be able to scale up new business while maintaining stable profitability and asset quality to gradually improve.

An influx of migrants, company relocations, and growth in remittances in 2022 supported economic growth and contributed to the expansion of the resource base of banks.

The report issued by the global corporation notes, however, that these factors will provide only a somewhat limited and temporary boost to the Kazakh banking sector.

From the perspective of the threats to the banking sector, S&P Global cites a high level of inflation, exchange rate volatility, and the need to refinance external borrowings among the potential challenges that pose a significant level of risks for the banking sector of Kazakhstan.