Uzbekistan’s banking sector profits climb to $254 million in Q1

According to the latest Bank Activity Index released by the Center for Economic Research and Reforms (CERR), the sector’s overall health is characterized by rising assets and a notable improvement in loan quality.

The report, which analyzed 34 credit institutions operational as of March 1, 2026, categorizes banks into large and small segments based on asset size and regional presence. Total assets in the system have climbed to UZS 932.3 trillion ($76.3 billion), while liabilities stand at UZS 793.9 trillion ($64.9 billion). This expansion is supported by a 14% year-on-year increase in the loan portfolio and a significant surge in total deposits, which grew by nearly one-third over the same period.

A key highlight of the report is the continued reduction in the share of non-performing loans (NPLs). The NPL ratio fell to 3.3%, down from 4.5% a year earlier, signaling a healthier credit environment despite some individual banks still reporting figures above the industry average. Furthermore, capital adequacy ratios remain strong, exceeding the minimum regulatory requirements by 1.4 times.

In the large bank segment, Kapitalbank retained its top position. While the bank saw slight declines in management quality and financial accessibility indicators, these were offset by gains in asset quality and liquidity. Hamkorbank followed in second place, showing across-the-board improvements in capital adequacy, asset quality, management, and profitability. Asia Alliance Bank and Ipak Yuli Bank secured third and fourth places respectively, while Trastbank rounded out the top five after slipping from the second spot due to decreased scores in financial accessibility.

Notable shifts were observed further down the rankings. Tenge Bank marked the most significant progress among major players, jumping six positions to enter the top ten. Conversely, Orient Finance Bank experienced the sharpest decline, falling five spots to 13th place. Agrobank moved up two positions to 16th, fueled by its leadership in financial accessibility and improved asset quality.

In the small bank category, TBC Bank Uzbekistan reclaimed the top spot for the first time since late 2025, overtaking Universalbank thanks to better liquidity and profitability metrics. AVO bank entered the top three for the first time, reflecting progress in asset quality and financial intermediation. Meanwhile, Octobank saw a significant drop from 3rd to 9th place, primarily attributed to a decline in its management quality score.