Uzbekistan's banking sector witnessed a notable increase in the volume of non-performing loans (NPL), reaching UZS 20.8 trillion ($1.7 bn), as of March 1, reports from the Central Bank of Uzbekistan shows. This represents a significant uptick of 4.17%, or UZS 836 bn ($66 mn), compared to previous figures.
State-owned banks experienced the most substantial growth in NPLs, with an increase of UZS 724 bn ($57.5 mn) at UZS 16.1 trillion ($1.3 bn). Notably, the Business Development Bank saw its NPL figure rise by 1.5 times, soaring from UZS 2.3 trillion ($183 mn) to UZS 2.9 trillion ($230 mn), constituting 13.8% of its loan portfolio.
Private banks also faced a rise in NPL, albeit to a lesser extent, with an increase of UZS 113 bn ($9 mn). Ipoteka Bank recorded a significant surge of UZS 156 bn ($12.4 mn), resulting in its NPL share rising from 7.3% to 8.1%.
The top performers in terms of the share of problem loans in their portfolios include Octobank, leading with an alarming 75.6%. Following closely are Madad Investment Bank with 28% and Iranian Bank Saderat with 20.1%.
Comparing the two sets of data reveals a noticeable increase in the volume of problem loans from March 1, 2023, to March 1, 2024. The total loan portfolio surged by approximately UZS 74,8 bn ($6 mn) within this period. Meanwhile, the NPL experienced a more significant spike of about UZS 5,798 bn ($460,083), reflecting a marked rise in financial risk within the banking sector. The difference in the share of non-performing loans in the total loan portfolio between the two periods was approximately 15.79%.
Earlier Daryo reported that Uzbekistan's banking sector was facing a notable increase in non-performing loans (NPLs) as of February 27, 2024. The data indicates a substantial uptick, with NPLs reaching UZS 20 trillion ($1.6 bn) by February 1, 2024, a significant escalation from January's figures of UZS 3.4 trillion ($272 mn). This surge, now representing 4.3% of the total loan portfolio, presents significant challenges for the country's banking industry.
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