According to the Central Bank, profit before tax rose by 34.8% to UZS 17.44 trillion, while corporate income tax expenses increased by just 5.8% to UZS 2.19 trillion.
Interest income reached UZS 110.4 trillion, an increase of 18.5% year on year. Interest expenses grew faster, rising by 21.4% to UZS 79.2 trillion. As a result, net interest income increased by 11.8% to UZS 31.3 trillion.
Non-interest income was the main driver of profit growth. It climbed by 44.3% to UZS 76.2 trillion, while non-interest expenses rose by 32.7% to UZS 26.5 trillion. Within this category, banks’ non-interest revenue increased 1.9-fold to UZS 23.4 trillion.
Operating costs and provisions also rise
Banks’ operating expenses increased by 27.3% to UZS 26.3 trillion.
Provisions for potential losses on loans and leases rose by 34% to UZS 24.9 trillion, while provisions for potential non-credit losses increased by 42.9% to UZS 12.3 trillion.
Despite higher costs and provisions, key profitability indicators improved. Return on assets (ROA) rose from 2.1% to 2.37%, while return on equity (ROE) increased from 11.8% to 14.1%.
However, net interest margin relative to total assets declined from 4.53% to 4.24%. Net interest income as a share of assets also fell, from 4.3% to 3.99%.
Largest banks account for two-thirds of sector profits
The 12 banks with assets exceeding UZS 30 trillion generated a combined profit of UZS 10.3 trillion, accounting for 67.5% of the banking sector’s total. Their return on equity stood at 12.35%.
Banks in the middle asset-size categories reported higher returns on equity. Six banks with assets of UZS 3 trillion to UZS 10 trillion recorded an ROE of 23.65%, while 11 banks with assets of UZS 10 trillion to UZS 30 trillion achieved 20.8%.
The latter group earned a combined UZS 3.93 trillion.
At the other end of the market, six banks with assets below UZS 3 trillion reported combined profits of UZS 38.8 billion, with a return on equity of just 1.96%.
