Ipoteka bank, a prominent player in Uzbekistan's banking sector, released its financial results for the first quarter of 2024 on April 29, showcasing robust operational performance.
In the first quarter of 2024, the bank achieved a commendable 39% increase in operating profit compared to the same period last year, reflecting robust business performance, particularly in the domain of consumer loans. Notably, the bank's market share in consumer loans witnessed a substantial rise from 6.5% in Q1 2023 to 9.6% in Q1 2024, accompanied by a growth in the customer base.
However, despite the impressive growth in operating profit, the net accounting profit for Q1 2024 experienced a significant decline, UZS 3.6 bn ($284,472) compared to UZS 374 bn ($29.5 mn) in 2023 Q1. Roziqov Muzaffar, IB at KAP DEPO Investment Company states that the decline in the bank's net profit is attributed to the allocation of a significant portion of the high operating income towards establishing reserves for corporate loans, as mandated by the Central Bank of Uzbekistan.
"Since the acquisition by OTP Group, we are working actively to properly identify any underperforming loans in our portfolio to create adequate reserves in line with international standards," discloses press service of Ipoteka Bank.
Despite the decline in net accounting profit, Ipoteka bank reassures its clients and business partners that the decrease will not impact its operations or service quality. Instead, the bank remains focused on the future, continuing to invest substantially in modernizing technology and improving services to enhance customer experience.
In 2023, a Hungarian investor acquired a 75% stake in Ipoteka Bank, making it the sole proprietor. The investor intends to buy the remaining 25% of the shares within three years. This acquisition by Hungarian OTP Bank positions it as the fifth largest financial institution in the country, marking its entry into Uzbekistan's banking sector. OTP Group's debut in Uzbekistan represents a significant milestone in its history, as it becomes the first Central Asian country where the group operates. With Ipoteka Bank holding a 7.6% share of the asset market and serving approximately 1.5 mn retail customers, this move opens up new opportunities for both parties.
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