Banks operating in Azerbaijan, Georgia, Armenia, Kazakhstan, Kyrgyzstan, and Uzbekistan are expected to maintain their stability in 2026, as they have in the previous two years.
Elchi.az reports that this was stated by the S&P Global Ratings rating agency. It was noted that the average lending growth in the region remaining in the range of 15–20%, the stability of asset quality, as well as adequate profitability and capital levels will support the positions of the banking sector.
S&P emphasized that favorable economic growth prospects, high credit demand, especially in the retail segment, sound financing and liquidity indicators, as well as stable capital buffers supported by strong profitability, will create conditions for maintaining credit quality in 2026.
Also, the agency announced that the rating outlook for 19% of financial institutions in the region is currently “positive”, and the outlook for 81% is “stable”.
The agency identifies increased geopolitical tensions, imbalances that may arise against the background of aggressive growth in retail lending, as well as new risks associated with digitalization, artificial intelligence, climate change and cyber threats as key risks for the region. At the same time, it is emphasized that although there has been progress in regulation, supervision and corporate governance, these areas are still less transparent and predictable compared to developed markets.