S&P updates ratings of Uzbek Xalq Bank
Uzbekistan, Tashkent, June 25 /Trend D.Azizov/
Management of Xalq Bank and representatives of the international rating agency Standard & Poor's have discussed the activities and performance of the bank in order to further upgrade the rating of the credit institution, the bank said on Monday.
As previously reported, S & P raised the long term counterparty rating of Xalq Bank to B + from B and affirmed the short term rating at B in accordance with updated methodology of assigning ratings in December, the information said.
The ratings were assigned with a 'positive' forecast.
According to the agency, assigned ratings reflect an adequate business position, an adequate position on risk, performance above the average level of funding and adequate liquidity of the bank. Evaluation of the bank's own creditworthiness is "B +".
According to the December forecast of S&P, the financial performance and business profile of the bank will remain stable over the next 12-24 months.
The state commercial Xalq Bank was reorganised from the Uzbek Republican Savings Bank in 1995. The bank is an agent of the government in implementing social programmes. It works as a universal commercial bank. In accordance with the law On the Cumulative Pension Benefits Act, Xalq Bank is defined as the only organisation that accumulates accounts of citizens participating in the pension system (NPS).
Currently Xalq Bank is one of the largest parts of the banking system of Uzbekistan. It structure includes 185 district and municipal offices, 242 mini-banks and more than 2600 offices and savings banks. The bank serves more than 30,000 businesses and nine million individuals.
Currently the authorised capital is formed at a rate of 180 billion soum and divided into 360,000 ordinary shares of 500 000 soum each. The bank plans to increase its registered capital by 11.1 per cent - 200 billion soum through the issuance of additional shares by 20 billion soum in 2012.
The founders of the bank are the Ministry of Finance of Uzbekistan and the Central Bank holding 51 and 49 per cent shares, respectively.
The bank increased its assets, calculated according to national accounting standards (NAS), by 31 per cent in 2011 compared to the totals in 2010 - up to 1.618 trillion soum, credit portfolio - 36.2 per cent, to 755.8 billion soum liabilities - by 33.6 per cent to 1.384 trillion soum and own equity of Xalq Bank increased by 17.5 per cent - up to 234.2 billion soum taking into account the share capital.
The bank received a net profit of 37.4 billion soum at the end 2011 compared to 28.3 billion soum in the previous years, a growth of 32.2 per cent.
Official exchange rate on June 25 is 1881,31 soum / $1