According to Central Bank data, profit before tax rose by 43.9% year on year to UZS 15.7 trillion.
Interest income grew by 18.1% to UZS 97.3 trillion, while interest expenses increased by 21.7% to UZS 70 trillion. As a result, the sector’s interest margin rose by 9.8% to UZS 27.3 trillion.
Non-interest income grew faster, increasing by 47.2% to UZS 68.9 trillion. Operating expenses also rose, climbing by 27.1% to UZS 23.3 trillion. Provisions for potential losses on loans and leasing increased by 35.4%, also reaching UZS 23.3 trillion.
The sector’s return on assets rose from 2% to 2.4%, while return on equity increased from 11.2% to 14.4%. However, net interest income as a share of total assets declined from 4.3% to 4%.
Largest banks account for 68% of profits
The 12 largest banks, each with assets of at least UZS 30 trillion, generated UZS 9.3 trillion in net profit, accounting for 68% of the sector’s total.
The banking sector’s aggregate capital increased by 17.6% over the year to UZS 151.5 trillion. Charter capital rose by 10.7% to UZS 101.1 trillion, while retained earnings grew by 51.5% to UZS 33.2 trillion. Regulatory capital stood at UZS 169.2 trillion.
The capital adequacy ratio improved from 17.9% to 18.3%, while the Tier 1 capital adequacy ratio rose from 14.9% to 15.2%. The common equity Tier 1 capital adequacy ratio edged down from 14.9% to 14.8%.
Liquidity indicators improve
Banks’ high-quality liquid assets increased by 48.9% year on year to UZS 222 trillion. Their share of total assets rose from 18% to 22.3%.
The liquidity coverage ratio climbed from 198.4% to 269.4%, well above the regulatory minimum of 100%. The net stable funding ratio increased from 116.3% to 132.5%.
The immediate liquidity ratio, however, fell from 119.4% to 101.5%, remaining above the required minimum of 25%.
Uzbekistan had 35 commercial banks as of September 1, compared with 36 a year earlier. Four banks had capital of at least UZS 10 trillion each, together accounting for 39.2% of the sector’s total capital.
