BAKU, Azerbaijan, March 4. Uzbekistan’s banks gained from inflows of capital and remittances from Russia in 2022, Trend reports with reference to Moody’s Investment Service.
“Increased trade between CIS countries and Russia helped banks in Uzbekistan, Kazakhstan, Armenia, and the Kyrgyz Republic, while banks in Tajikistan, Kyrgyz Republic, and Uzbekistan gained from inflows of capital and improved remittances”, Moody’s says.
According to Moody’s forecast, further weakening of the Russian economy and large inflows of skilled workers will also impact the development of the Uzbek banks.
“The government's economic reform program will likely lead to a sustained improvement in competitiveness and increased investment, alongside enhanced governance and transparency. We expect economic growth (forecast at 5 percent in 2023) to translate into better loan performance and profitability at the banks,” Moody’s added.
Meanwhile, Moody’s pointed out that the growth of fee and commission income and trading gains stemming from Russian, Belarus, and Ukrainian customers will help Uzbekistan’s banks to improve their business activity.
Moody’s Investment Service provides data, analytical solutions, and insights into decisions in financial markets. Moody’s operates in more than 40 countries.