Non-performing loans (NPLs) in Uzbekistan's banking sector have reached UZS 23.3 trillion ($1.8 bn) as of May 1, as per to an announcement by the Central Bank of Uzbekistan on May 27. This represents a 7.87% increase from the UZS 21.6 trillion ($1.7 bn) reported on April 1.
#Uzbekistan's #NPLs rise by $59mn since March 2024@centralbankuzb data reveals that the #proportion of NPL in the overall #loan portfolio of #stateowned banks has risen from 4.9% to 5.1%, while maintaining a steady 3% in #private #banks.
— Daryo | Central Asia & Afghanistan (@DaryoEng) May 28, 2024
👉Details — https://t.co/ujvH8JNaTd… pic.twitter.com/5E1avd2TI5
Uzbekistan's commercial banks have a total loan portfolio of UZS 483.6 trillion ($38 bn), with non-performing loans (NPLs) accounting for 4.8% of this amount.
Banks with State Shares
Banks with state shares collectively have a loan portfolio of UZS 339.2 trillion ($26.7 bn), with NPLs totaling UZS 17.8 trillion ($1.4 bn) , which translates to an NPL ratio of 5.3%. The National Bank of Uzbekistan (NBU), holding a loan portfolio of UZS 100.4 trillion ($7.9 bn), has NPLs amounting to UZS 4.2 trillion ($332 mn), reflecting a 4.2% NPL ratio. SQB, with a portfolio of UZS 58.7 trillion ($4.6 bn), has an NPL ratio of 5.1%, while Agrobank’s ratio stands at 3.7% with problem loans totaling UZS 2.1 trillion ($166 mn). Asakabank and Xalq banki show NPL ratios of 4.8% and 7.0% respectively, with Xalq Banki facing a notable challenge given its higher percentage of problem loans.
The Business Development Bank exhibits a significantly high NPL ratio of 15.0%, suggesting substantial credit risk within its loan portfolio. Microcreditbank and Turonbank maintain NPL ratios of 6.6% and 2.5%, respectively, while Aloqabank stands at 4.2%. Poytaxtbank, with a smaller loan portfolio of UZS 127 bn ($10 mn), maintains an NPL ratio of 1.3%.
Private Banks
Among private banks, the total loan portfolio is UZS 144.4 trillion ($11.4 bn), with NPLs amounting to UZS 5.5 trillion ($432 mn), giving an NPL ratio of 3.8%. Ipoteka bank, with a portfolio of UZS 36.6 trillion ($3 bn), has an 8.9% NPL ratio, indicating a higher level of risk. Kapitalbank, Hamkorbank, and Ipak yuli Bank have lower NPL ratios of 2.6%, 1.5%, and 0.9% respectively, reflecting relatively better loan performance.
Orient Finans Bank maintains a particularly low NPL ratio of 0.4%, highlighting effective credit risk management. InfinBank, Trastbank, and Davr Bank show moderate risk levels with NPL ratios of 1.8%, 2.2%, and 1.0% respectively. TBC and Anorbank report NPL ratios of 2.2% and 2.5%. Asia Alliance Bank, with a portfolio of UZS 3.9 trillion ($306.4 mn), has a 1.6% NPL ratio.
Tenge Bank stands at 4.3%, while KDB Bank shows exceptional credit quality with no problem loans. Ziraat Bank and Universal Bank have NPL ratios of 2.9% and 1.0%. However, Garant bank and Madad Invest Bank exhibit high NPL ratios of 15.1% and 25.7%, respectively, indicating significant financial distress. Octobank faces the highest challenge with an NPL ratio of 76.9%.
Comparative analysis between May 2023 and 2024
When comparing data from May 1, 2023, and May 1, 2024, several trends and changes can be observed in the banking sector of Uzbekistan.
Information on problem loans of commercial banks of Uzbekistan in May by Khadicha Abdurashidova
The total loan portfolio increased from UZS 413.4 trillion ($32.5 bn) in 2023 to UZS 483.6 trillion ($38 bn) in 2024, representing a growth of 17%. Meanwhile, total NPLs rose dramatically from UZS 14.8 trillion ($1.2 bn) in 2023 to UZS 23.3 trillion ($1.8 bn) in 2024, marking an increase of 57.8%.
Focusing on state-owned banks, the loan portfolio of these institutions increased from UZS 336.8 trillion ($26.5 bn) to UZS 339.2 trillion ($26.7). However, NPLs in these banks grew from UZS 13.3 trillion ($1 bn) to UZS 17.8 trillion ($1.4 bn), reflecting a substantial 33.6% rise.
Among individual banks with notable changes, the NBU's loan portfolio grew by 14.1%, rising from UZS 87.9 trillion ($6.9 bn) to UZS 100.4 trillion ($7.9 bn). At the same time, NPLs for the NBU increased by 52.8%. SQB saw a 10.1% rise in its loan portfolio and an 83.3% increase in NPLs.
In the realm of private banks, the loan portfolio for other banks collectively grew by 88.6%, with an increase in NPLs by 284.6%. Kapitalbank experienced a 41.8% rise in its loan portfolio and a staggering 412% growth in NPLs.
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