Kazakh banks expect growth in auto loans, moderate rise in mortgages in Q2 2025Kazakh banks anticipate increased demand for auto loans and a modest rise in mortgage applications in the second quarter of 2025, according to a National Bank survey.Banks forecast modest declines in both secured and unsecured consumer lending in Q2.In Q1 2025, auto loans and secured consumer loans saw growth, while mortgage and unsecured consumer lending decreased."The drop in mortgage demand was partly due to delayed government housing savings premium payments, causing borrowers to apply later in the quarter. Overall, loan applications rose 6% (quarter-on-quarter) to 241,000, though the average loan size fell 7% to 16.6 million tenge," Olzhas Kubenbayev, Director of the Financial Stability and Research Department, reported, referring to the survey.Secured consumer loans saw a slight increase, driven by lower interest rates, fee waivers, and aggressive promotions by major banks. Applications rose 25% (q/q) to 50,900, with the average loan size up 9% to 12.8 million tenge. Unsecured consumer loans declined as some banks paused marketing campaigns and retail credit programs. Applications fell 10% (q/q) to 18.1 million, though the average loan size grew 13% to 1.025 million tenge.Auto loans continued growing due to dealership partnerships and subsidies, with applications rising 13% (q/q) to 1.4 million and the average loan size up 11% to 7.9 million tenge. Mortgage and auto loan approval rates dipped to 24% and 16%, respectively.Business Lending TrendsCorporate loan demand remained stable in Q1, with large and medium businesses borrowing more for working capital needs, despite higher interest rates and reduced state support programs. Large firms submitted 10% more applications (235 total), with average loan sizes up 30% to 11.5 billion tenge. Medium businesses saw a slight decline in applications (-1% to 4,600), with average loans down 8% to 768 million tenge. Small business lending fell 5% (884,000 applications) due to paused government subsidy programs, with average loans down 26% to 35.4 million tenge, though some banks mitigated the drop with new products.The survey included 19 banks, representing most of Kazakhstan’s 21 banking institutions. The National Bank conducts quarterly lending surveys to assess credit demand and supply trends. (ICE ALMATY)

Fonte notizia: INTERFAX