The Center for Economic Research and Reforms (CERR) calculated the "Bank Activity Index" for the 3Q 2023, on the basis of which the rating of banks was updated. The index is calculated for 29 commercial banks grouped into two groups: large (17) and small (12) banks.
The index is determined based on the grouping of 27 types of coefficients, comparison and ranking. The study is conducted quarterly in order to monitor changes in the share of the private sector in banking assets, assess the effectiveness of reforms and transformation processes in the banking sector.
Key performance indicators of banks for the 3Q 2023
Despite the growth of key indicators of the banking system compared to 2022, the growth rate of the total volume of deposits has sharply decreased. In particular, the assets of the banking system of the republic as of September 1, 2023 amounted to 611.4 trillion sums, which is 15% more than a year earlier, liabilities increased by 15% to 524.7 trillion sums, the balance on loans amounted to 444.7 trillion sums with an increase of 25%, and the balance of deposits amounted to 220.5 trillion sums with an increase of 7%, compared to 56.7% last year.
Over the year, the share of foreign currency deposits in the total volume of deposits of the banking system decreased by 10% – from 42.6% to 32.3%.
In the 3Q, there was a significant slowdown in the growth rate of profitability of banks. Over the year, interest income growth decreased by 2.4% and amounted to 33.5%, interest-free income compared to the 3rd quarter of last year showed a decrease of 63% and amounted to 21.4%, net profit growth fell by 49.2% to 8.3%.
Highly liquid assets of the banking system decreased by 19.9% compared to the corresponding period of the previous year, and their share in total assets for the year decreased from 21.4% to 14.4%.
Indicators of financial stability of the banking system exceeded the minimum requirements of Basel III, which indicates the continued stability of the banking system, including financial and economic crises, increased transparency and disclosure of information, and improved quality of risk management. In particular, the ratios of regulatory capital and Class 1 capital - 15.9% and 13.3%, respectively, were 1.3 times higher than the minimum requirements.
The activity of the population in the use of the banking system has significantly increased. If in the 3Q last year 24.5% of the loan portfolio belonged to individuals, then over the year their share increased by 6 percentage points and amounted to 30.2%, and the number of legal entities respectively decreased from 75.5% to 69.8%.
At the same time, the balance of deposits of individuals increased by 8% and amounted to 35.9%, legal entities decreased from 73.2% to 64.1%.
Rating of activity of large banks for the 3Q this year
Among the 17 major banks of the country, three banks improved their places in and rose up by two points in the overall rating – Xalq bank managed to significantly improve liquidity indicators by 5 points at once and increased indicators on financial intermediation, capital adequacy and asset quality by one point; Agrobank improved indicators on "financial cooperation" (+2 points), and and Invest Finance Bank showed an improvement in "capital adequacy" (+5 points).
According to the results of the 3Q, three more banks were able to climb one line up – these are Asia Alliance Bank, Trast Bank and Uzpromstroybank.
The next five banks retained their places in the overall standings – these are Kapitalbank, Aloqa Bank, Mikrokreditbank, Turon Bank and Asaka Bank.
In terms of financial intermediation, the National Bank retained the last, 17th place in the rating. According to this indicator, Asaka Bank and Orient Finance Bank dropped by 1 position, Ipak Yuli Bank and Kapitalbank decreased by 2 positions, and Hamkorbank decreased by 3 positions.
In terms of profitability, Asaka Bank retained the lowest position, while in terms of this indicator, Xalq Bank and Turon Bank decreased by 2 points, National Bank and Asia Alliance Bank decreased by 1 point.
In terms of management efficiency, Mikrokreditbank retained the last 17th place. Also among the large state-owned banks, a decrease was recorded in Xalq Bank, Qishlok Qurilish Bank and Asaka Bank. Ipoteka Bank sharply lost 8 points.
According to the results of the 3Q, Kapitalbank retained its leadership in the overall rating of large banks, while Asia Alliance Bank rose by 1 point and took second place in the overall rating, swapping places with Hamkor Bank.
Rating of activity of small banks for the 3Q this year
Davr Bank retained the leadership in the rating of small banks, while Ziraat Bank rose by 2 positions and took second place in the rating, and Universal Bank and TBC Bank dropped by 1 position, taking third and fourth place, respectively.
In addition, Tenge Bank and Poytaxt Bank dropped by 1 position in the rating, while Madad Invest Bank and Anor Bank rose by 1 position. The remaining banks retained their positions compared to the previous period.
Poytaxt Bank, the only small bank with state-owned shares, which managed to rise by 2 points in terms of "asset quality" and "liquidity", but decreased by 1 point in terms of "financial accessibility" and "management efficiency", which caused the bank to decrease by 1 point in the overall rating.
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