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Uzbek Kapitalbank tops country's Bank Activity Index ranking

Finance Materials 24 July 2020 12:46
Uzbek Kapitalbank tops country's Bank Activity Index ranking

BAKU, Azerbaijan, July 24

By Ilkin Seyfaddini - Trend:

The Center for Economic Research and Reforms of Uzbekistan has developed an index of local bank activity, Trend reports citing the Center.

The index consists of the index of financial intermediation and availability, as well as index of financial stability of banks.

In the study, the Center assessed the activity index for 27 commercial banks. There are 31 commercial banks operating in Uzbekistan. Of these, 13 banks have state share, 16 are private banks or banks with foreign capital participation.

Kapitalbank, Hamkorbank and Alokabank are among the top three banks in the overall Bank Activity Index ranking for May 2020.

In the general rating, the first place (as well as in the ratings on financial intermediation and profitability) was taken by Kapitalbank. The ratio of savings and term deposits to total loans in Kapital Bank increased to 82 percent, while the share of deposits and loans from other banks and financial institutions in total liabilities and the share of government funds in total liabilities are considered to be significantly lower than average figures for the banking system (3.2 and 0.14 respectively). This was also facilitated by high indicators of the financial availability index, the share of loans from the top 10 clients, and the ratio of loans to the private sector to the total amount of loans.

Hamkorbank was ranked second in the overall rating (first in terms of financial accessibility, second in terms of profitability). In particular, this bank was ranked 3rd in the ratings by the average number of loans issued by its branches to individuals (4,323 persons per branch).

Alokabank ranked third in the overall rating due to its low liabilities to the government, high ratio of savings and term deposits to the total amount of loans among banks with the government share.

Tenge Bank, UzKDB Bank and Poytaxt Bank took the last three places in the overall ranking. UzKDB's relatively high share of loans to its 10 largest customers and low level of funding from savings and term deposits resulted in a relatively low score. However, these banks are among the top three in terms of liquidity.

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