as of 1 April the volume of loans provided by microfinance institutions (MFIs) amounted to 316,1 billion tenge. In January-March, their volume increased by 22.7 billion tenge.
In General, for all the time that the national Bank publishes data on the activities of MFIs of the Republic (since 2014), have never been observed quarterly decrease. That is
the demand for microcredits in the Republic is growing continuously for over 6 years
In General over the past year, the amount provided to MFIs loans increased by 35.6%. These rates stay for 7 consecutive quarters (from July-September 2018).
In previous years the strongest relative growth was largely due to low base effect. Now, in the forefront is the growth of absolute performance: 12 months the volume of provided microcredits grew by 83.1 billion tenge, which is an absolute record.
The number of MFIs is growing
One of the reasons for the growth of microcredit is growing in availability. Special requirements to borrowers the majority of MFIs never really distinguished, and microfinance institutions themselves became more.
By the end of 2019, their number has increased by more than a quarter (from 157 to 199 units)
In the first quarter of 2020 the growth has continued – now, according to the national Bank of the Republic of their 201.
A really large MFIs in the Republic are relatively few. As of April 1, 2020, the total assets of microfinance organizations amounted to 397,8 billion tenge. And more than 70% are 4 companies
- Assets “KMF (KMF)” are 156,4 billion tenge. That’s more than 9 out of 27 banks of the country on the same date
- “Toyota Financhel services of Kazakhstan” 76.7 billion tenge (more than the six second-tier banks of the Republic)
- “Onlinecasinos” — 28.8 billion tenge
- “Arnur Credit” — 20.5 billion
These same MFIs accounted for almost 74% of all granted on April 1, 2020 microcredit, 80% of all commitments and 57% of the total profit.
Average profit of more than 82 million tenge per day
By the way, about profit. Microcredit in Kazakhstan – it is very profitable. For the first quarter of 2020 the cumulative undistributed profit of all MFIs of the Republic amounted to 7.4 billion tenge.
- During the year, the index rose by 43.3%, as compared to the 2018 first — in 2.3 times.
- In absolute terms, the increase in profit compared to the first quarter of 2019, the exceeded 2.2 billion tenge 2018 – 4,1 billion tenge.
- Profit January-March 2020 was a record – has never MFIs for the quarter not so much earned. For the entire 2017 year figure was 9.8 billion
- On average in the first quarter of every day, Kazakh microfinance organizations earn 82,1 million tenge.
However, to earn is not obtained at all. Profit for the quarter was only about 60% (125) MFIs.
22 the organization ended the year at zero, and the rest – 55 organizations in the loss. In the majority it is a small office, the assets of which rarely exceeds a few tens of millions tenge. However, the losses they have most of them are also relatively small, although the amount is typed in, a decent amount of the cumulative loss amounted to 535,8 million tenge.
The quality of the loans falls
Another important point is the quality of the loan portfolio. Here, the situation is getting worse. According to the national Bank on January 1, 2020, the volume of loans with overdue payments in MFIs from individuals was 7.5%, with 4% overdue over 90 days (NPL). Indicators 3 months later and 11.5% and 4.1%, respectively.
At least from the beginning of 2018, the quality of the loan portfolio was not worse: on April 1, 2019, for example, were overdue payments of 7.2% of microloans, and to the toxic attitude of 3.5%.