In a January 16 meeting, President Mirziyoev particularly underscored the potential recovery of Non-Performing Loans (NPLs), noting the availability of substantial resources amounting to UZS 25 trillion (approximately $2.03 bn).
The Central Bank of Uzbekistan reported that, as of December 1, 2023, Uzbekistan's banking sector (both state owned and private) faces the challenge of non-performing loans (NPL), with a total of UZS 17.6 trillion (approximately $1.4 bn) constituting 3.8% of the overall loan portfolio of UZS 465.5 trillion (approximately $37.6 bn).
During the meeting, it was noted that Jizzakh, Surkhandarya, and Syrdarya regions have seen an increase in the share of NPL, reaching 10%. The Central Bank of Uzbekistan, however, does not provide a regional and product-wise breakdown of these NPLs, regional economist, Otabek Bakirov reported on his social media.
as of December 1, 2023
Total NPL Landscape
The CBU, in its official release, reveals that NPL stands at UZS 17.6 trillion (approximately $1.4 bn), emphasizing the imperative of addressing these NPLs. The magnitude of NPL is a critical factor, amounting to 3.8% of the entire loan portfolio.
State-Owned Banks: A Closer Look
National Bank of Uzbekistan
National Bank of Uzbekistan grapples with NPL, holding a substantial loan portfolio of UZS 96.7 trillion (approximately $7.8 bn). The non-performing loans reach UZS 3.4 trillion (approximately $277 bn), translating to an NPL share of 3.5%.
Asaka Bank
Asaka Bank manages a loan portfolio of UZS 40.1 trillion (approximately $3.2 bn), with NPL amounting to UZS 1.8 trillion (approximately $147 mn). The NPL share, standing at 4.5%, poses challenges for the bank's financial stability.
Business Development Bank
The Business Development Bank confronts the hurdle of NPL in its loan portfolio of UZS 22.1 trillion (approximately $1.8bn). Non-performing loans total UZS 1.9 trillion (approximately $152 mn), accounting for a substantial 8.5% share.
Private Banks in the Spotlight
Ipotekabank
Among private banks, Ipotekabank stands out with a significant loan portfolio of approximately UZS 37 trillion (around $3 bn). While their NPL is at around UZS 2 trillion (approximately $156 mn), accounting for a substantial 5.2% share.
Kapitalbank
Kapitalbank, another private entity, manages a loan portfolio of UZS 25.3 trillion ($2.05 bn). While the NPL at UZS 444 bn (around $36 mn) and, the bank's NPL share is 1.8%.
HamkorBank
HamkorBank navigates the challenge of around with a loan portfolio of UZS 16 trillion (approximately $1.3 bn. The specific NPL is UZS 104 bn ($8.4 mn), while NPL share is 0.7%.
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