Uzbekistan's banking landscape has witnessed significant changes in recent months, with a notable upswing in deposit activity and a redistribution of deposits between public and private banks, as reported by the Central Bank of Uzbekistan.
Central Bank reports that, Uzbek citizens have been actively depositing their money into banks while making fewer withdrawals. As of October 1, the total volume of funds held in deposits reached UZS 221.33 trillion (over $18bn). This represents a 9% increase over three months and a 2.1% increase since the beginning of the year.
July marked a significant turning point when total deposits saw their first uptick of the year, with an increase of UZS 5.47 trillion (over $451mn). The most substantial rise was observed in August, totaling UZS 12.1 trillion (around $998mn) although the trend tapered off in September.
.png)
The distribution of deposits between state and private banks has remained relatively balanced. State banks hold 52% of total deposits, while private banks account for the remaining 48%. Notably, in June, Ipoteka Bank transitioned from state ownership to the private sector.
Among state-owned banks, the National Bank of Uzbekistan (NBU) takes the lead with UZS 29.96 trillion (over $2.4bn) or 13.5% of total deposits, followed by Xalk Banki with UZS 16.15 trillion (over $1.3bn) 7.3% and Uzpromstroybank with UZS 14.97 trillion (over $1.2bn) 6.8%.
Kapitalbank emerges as the top performer among private banks, securing first place with UZS 26.85 trillion (over $2.2bn) 12.1%. This bank experienced the most significant deposit increase during the quarter, with a gain of UZS 3.58 trillion (over $295mn).
In the segment of non-state banks, the privatized Ipotekabank OTP Group claimed the second spot with UZS 15.7 trillion ( around $1.3bn) 7.1%, while Hamkorbank completes the top three with UZS 7.56 trillion (over $623mn) 3.4%.
.png)
Changing Deposit Landscape
The past quarter has seen a realignment in deposit trends, with increased deposits in Kapitalbank, the NBU, Asakabank, and Asia Alliance Bank. Conversely, Tenge Bank experienced the largest losses, with a decrease of UZS 207bn (over $17mn).
The Central Bank does not provide specific details about corporate and individual account funds. However, data from the Central Election Information Center indicates that individuals held 35.9% of total deposits as of September 1, with legal entities constituting the remaining 64.1%. This marks an 8% shift in favor of individuals over the past year.
Furthermore, the proportion of foreign currency deposits has significantly decreased. While these deposits accounted for 42.6% of all funds last September, they now make up only 32.3%.
Uzbekistan's banking sector is adapting to changing deposit behaviors, with heightened deposit activity and adjustments in the public-private deposit balance. These shifts offer insights into the evolving financial preferences and behaviors of Uzbeks, shedding light on the country's financial future.
Written by Khadicha Abdurashidova
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)