Why is this important
The approval of the BB rating with a stable outlook is a sign of confidence from the agency, especially against the backdrop of recent loan write-offs and financial difficulties faced by the bank.
What happened
- The IDR rating of Ipoteka bank has been confirmed at the level of BB, the forecast is “Stable”.
- Support Rating (SSR) at “bb” level and Viability Rating (VR) at “b” level were also confirmed.
- Fitch indicates that a significant portion of the rating buffer is provided by possible support from the parent group — the Hungarian OTP Bank Plc.
- Ipoteka bank accounts for about 22% of the mortgage lending market in Uzbekistan (as of the first half of 2025).
- NPL (problem loans) at the end of 2024 was about 21% (2023 — 19%). Fitch expects them to decrease to 15% by 2026.
- In 2024, the bank showed a profit of 1.3 trillion soums with a return on equity of 23%.
- The fixed capital ratio (FCC) reached 12% by the end of 2024, and the forecast estimates growth to exceed 14% in 2025-2026.
- Earlier, Ipoteka bank shareholders approved the write-off of 174.8 billion soums (11.8 million euros) in problem loans from the Parvoz Xumo Ravnaq Trans group of textile companies and related structures.
- The total amount of the group’s written-off debts reached 333 billion soums.
- Based on the results of the first half of 2025, Ipoteka bank recorded a loss of 392.5 billion soums, becoming the most unprofitable bank among its competitors.
What they say
Ipoteka-bank’s ratings are supported by the high potential of support from OTP, but are limited by the framework of Uzbekistan’s’sovereign ceiling, — Fitch notes.
Frank.uz previously wrote that the write-off of Parvoz Xumo Ravnaq Trans loans is a large-scale operation that will increase the burden on the bank’s internal balance sheet, but also demonstrates the willingness of the bank’s new owners to clean up the problematic portfolio.
Context
Ipoteka bank is one of the key players in the Uzbekistan mortgage market, with a strong niche in housing lending. In June 2023, the bank became part of the OTP Group: the Hungarian OTP acquired a controlling stake.
Uzbekistan’s banking system is being strengthened by regulation, increased oversight, and improved corporate governance — this is a general trend that great players capable of withstanding shocks benefit from. Fitch’s recognition adds rating stability, but risks remain — a high NPL share, the need to retain capital, and the potential for further write-offs.
