The banking sector in Uzbekistan has witnessed a remarkable surge in net profit by 12.6% at the end of the third quarter of 2023, reaching an impressive UZS 8 tn ($646.4 mn), the KAP DEPO Investment Company reports. This growth has been propelled by several key players in the industry, with the Joint-stock company “National Bank for Foreign Economic Activity of the Republic of Uzbekistan” (NBU), ATB “Kapitalbank”, and ATB Hamkorbank leading the charge.
The NBU, a state-owned entity, has sustained a robust domestic franchise, holding a 20% share in sector assets and serving as a systemically important bank for key state-owned corporates in Uzbekistan. The private sector’s share of banking assets has been on the rise, with 23 private banks accounting for the remaining share.
Furthermore, NBU is in first place and ATB “Kapitalbank” is coming in second, demonstrating an impressive growth trajectory, with a difference in profit of UZS 116bn ($9.4 mn). This growth can be attributed to its strong performance and strategic initiatives.
On the other hand, ATB Hamkorbank fell to the 3rd place in the rating of most active banks in Uzbekistan. Despite this, it remains a significant player in the banking sector.
Two banks that have emerged as new and promising players in the current top-10 ranking are Davr Bank and KDB Bank Uzbekistan. Davr Bank, in particular, has shown a record level of net profit in the first half of 2023. KDB Bank Uzbekistan, a subsidiary of Korea Development Bank, has also shown growth in its Tier 1 capital at the end of 2023.
The economic milestones of Davr Bank and KDB Bank Uzbekistan for the year 2023:
Davr Bank:
- The forecasted adequacy ratios of the Bank's regulatory capital and Tier 1 capital at the end of 2023 will be 16.94% (against a standard of 13%) and 12.70% (against a standard of 10.0%).
- In the first half of 2023, the Bank's ROE (Return on Equity) was 54%, ROA (Return on Assets) was 9%, CIR (Cost-Income Ratio) was 29%, and Net Profit was UZS 198 bn ($16 mn).
KDB Bank Uzbekistan:
- KDB Bank Uzbekistan JSC announced the availability of SWIFT Global Payments Innovation (GPI) services in 2023.
- SWIFT GPI allows the Bank to track the path of international payment in real-time, receive transparent data on payment fees and see the final status of the transaction.
- The Bank announced that access to the old version of the ‘MultiPay’ mobile application will be closed from September 29, 2023.
- The country’s economy rebounded to 7.2% in 2021, after a contraction of 1.9% in 2020, and reached 5.5% in 2023, demonstrating one of the highest growth rates among the countries in the Europe and Central Asia region.
The analysts of KAP DEPO Investment Company predict a record profit growth at ATB “Kapitalbank” following the results of Q4. If this prediction holds, it could result in NBU ceding the leadership to one of the largest private banks in Uzbekistan for the first time.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)