A recent report published by the Central Bank of Uzbekistan sheds light on the loan portfolio landscape of banks in the country as of August 1, 2023. The data, analyzed by KAP DEPO Investment Company, reveals significant trends in lending distribution among state-owned and private banks, reflecting the evolving financial dynamics in Uzbekistan.
Loan portfolio overview
As of August 1, 2023, the aggregate loan portfolio across all banks in Uzbekistan stood at UZS430.2 tn, equivalent to $35.5 bn. Notably, state-owned banks dominated the lending landscape, accounting for a substantial 72.2% of the total loans. This is a significant shift from the previous scenario, wherein state-owned banks held an even more dominant position at 80.1%, prior to the privatization of IPOTEKA-BANK (IPTB).
Key players in the loan portfolio
Joint-Stock Company "National Bank for Foreign Economic Activity of the Republic of Uzbekistan" (NBU): The largest share of the loan portfolio is attributed to NBU, representing nearly 21%. This indicates the bank's extensive involvement in financing various economic activities.
SQBN: Following NBU, SQBN holds 12.2% of the total loan portfolio, underlining its considerable role in providing financial assistance to businesses and individuals.
Agrobank: Agrobank, with an 11.8% share, emerges as another significant player in the lending landscape, particularly in supporting the agricultural sector and rural development.
Private banks in the lending landscape
Among private banks, IPOTEKA-BANK (IPTB) takes the lead with a 7.8% share of the total loan portfolio. This position highlights IPTB's role in catering to diverse borrowing needs within the private sector. AKBank "Kapitalbank" and AKBank "Hamkorbank" follow suit with 5.2% and 3.3% of the total portfolio, respectively.
The report underscores an impending change in the balance of lending between state-owned and private banks. This adjustment is anticipated to occur following the privatization of SQBN and Agrobank. As these institutions transition to private ownership, the lending landscape is expected to witness further transformation, potentially impacting the distribution of loan portfolios across various players.
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