BAKU, Azerbaijan, July 30
By Klavdiya Romakayeva - Trend:
Income growth rates of the banking sector of Uzbekistan are falling despite the increase in the net profit of Uzbek banks, Trend reports referring to the Central Bank of Uzbekistan (CBU).
According to the CBU, the aggregate net profit of the banks of Uzbekistan in the first half of the year reached three trillion soums ($282 million), which is 15.75 percent more than in 1H2020.
The CBU said that despite this increase, the growth rate of the sector's income is falling compared to the beginning of the year. In January 2021, financial institutions earned 58 percent more than a year ago.
It is reported that for six months of 2021, financial institutions of Uzbekistan as a whole received an interest margin of 7.98 trillion soums ($751 million), increasing by 22.7 percent. Non-interest income almost tripled - up to 3.04 trillion soums ($286 million). Assessment of possible losses on loans and leasing reached 7.1 trillion ($668 million), increasing by 75.6 percent.
It was also noted that the quality of banks' loan portfolio continues to deteriorate. As of July 1, the volume of problem loans rose to 5.6 percent. In value, the delay reached almost 16.8 trillion soums ($1.6 billion). For comparison, as of May 1, the share of problem loans was at the loss of 4.4 percent, and as of June 1 it amounted to 4.7 percent.
Moreover, the highest percentage of non-performing loans from Hi-Tech Bank amounted to 90.9 percent. It is followed by Turkiston bank and Uzagroexportbank - 80.2 percent and 62.6 percent, respectively.
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