The Center for Economic Research and Reforms (CERR) unveiled its comprehensive overview of Uzbekistan's banking activity during the 4Q23. The analysis categorized financial institutions into two groups: 11 small banks and 17 large banks, utilizing key performance indicators such as financial intermediation, financial inclusion, capital adequacy, asset quality, management efficiency, profitability, and liquidity.

Large Banks: Shifting Dynamics

In the large banks category, Asia Alliance Bank experienced a shift from third to fourth place, ceding the second position to Trastbank. Trastbank demonstrated strong performance across various indices, securing its standing as the leading large bank. Kapitalbank maintained its overall lead, emphasizing improved capital adequacy and liquidity, despite minor declines in other indices.

Private Banks' Reshuffling

Among the large private banks, Infinbank, AloqaBank, and Ipoteka Bank advanced by one position. National Bank improved from 15th to 13th place. Conversely, Ipak Yuli, Biznesni Rivojlantirish Banki (SQB), and HalqBanki saw a dip in their positions. State-participating banks, including Microcreditbank, Agrobank, Uzpromstroy Bank, Turon Bank, and Asakabank, maintained their rankings from 11th to 17th place.

Small Banks: Consistency at the Top

In the small banks category, the top six positions remained stable, with Davr Bank leading the pack, followed by Ziraat Bank, Universal Bank, and TBC Bank. Oktobank and Garant Bank improved their standings, while Madad Investment Bank and UzKDB Bank saw slight declines.

Detailed Analysis by Indices

The CERR analysis delved into various indices, noting changes in performance:

• Financial Intermediation Index:

  • 11 banks witnessed a decline.
  • Notably, Ziraat Bank in the small banks category dropped five positions.

• Capital Adequacy Index:

  • Nine banks experienced a decline.
  • Kapitalbank and AloqaBank showcased notable activity, securing 3rd and 4th places, respectively.

• Asset Quality:

  • Deterioration observed at Trastbank, Asia Alliance Bank, and SQB among large banks.
  • Tenge Bank exhibited noticeable decline among small banks.

• Liquidity Index:

  • 10 out of 28 banks demonstrated improved liquidity.
  • Kapitalbank and Oktobank showed significant increases in this aspect.

Key Banking Results: Q4 2023

• Asset Growth:

  • A 14% increase in banking system assets, reaching UZS 631.4 trillion ($50.9bn).

• Loan Portfolio Expansion:

  • Loan portfolio grew by 22%, reaching UZS 465.5 trillion ($37.5bn).

• Deposit Volume:

  • A 6% increase in deposit volume, totaling almost UZS 230 trillion ($18.5bn).

• Foreign Currency Deposits:

  • A noteworthy 10-percentage-point decrease in the share of foreign currency deposits, dropping to 31.8%.

• Profitability Landscape:

  • Interest income growth increased by 5.4 percentage points, reaching 38%.
  • Non-interest income and net profit growth slowed down to 27% and 22%, respectively.

• Problem Loans:

  • A 3.8% decrease in the share of problem loans, emphasizing the sector's resilience.
  • State banks reduced problem loans to 4.2%, while private banks lowered it to 2.9%.

Earlier, it was reported that during his state visit to China, President Shavkat Mirziyoyev of Uzbekistan visited the headquarters of the Asian Infrastructure Investment Bank (AIIB) to engage in discussions with the bank's president, Jin Lixun on January 24.

Follow Daryo's official Instagram and Twitter pages to keep current on world news.