The Center for Economic Research and Reform (CERR) has released its assessment of the activity within the Uzbek banking sector for the first quarter of 2024. The report provides insights into the performance of both large and small banks, highlighting shifts in rankings and key indicators shaping the sector's landscape .
In the category of large banks, significant changes were observed, with five financial institutions losing ground while four others improved their positions. The Asia Alliance Bank emerged as a leader, securing third place in the overall rating after experiencing a one-point increase. Conversely, in the small bank category, Davr Bank relinquished its top spot to Universal Bank, which demonstrated the most improvement among its peers.
CERR's Banking Activity Index, calculated quarterly, serves as the basis for updating the bank ratings. The index considers various metrics to gauge the effectiveness of reforms and transformation processes within the banking sector. This quarter, the index was computed for 31 commercial banks, comprising 17 large and 14 small banks.
Key indicators for the Uzbek banking system in Q1 2024 reveal notable trends. While the growth rate of total assets experienced a slowdown compared to previous years, state banks continue to dominate, accounting for a significant portion of assets, loans, and deposits. However, private banks have shown resilience, attracting substantial deposits despite a slight decrease in the growth rate.
The report indicates a noticeable increase in the population's engagement with the banking system, with individuals accounting for a larger share of the loan portfolio and deposits. However, the rise in problem loans is a cause for concern, reflecting challenges within the sector.
Among large banks, changes in rankings were observed across various metrics, including financial intermediation, financial inclusion, asset quality, and profitability. While some banks saw improvements, others experienced declines, reshuffling the overall standings. Kapitalbank and Trustbank maintained their leadership positions, with Asia Alliance Bank securing third place.
In the small banks category, shifts in rankings were also evident, with Davr Bank losing its top position to Universal Bank. Ziraat Bank and Madad Investment Bank experienced notable declines, while others maintained their positions.
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)