Why is this important
A high proportion of problem loans indicates a weak quality of the loan portfolio and risks to the financial stability of banks. The average NPL level for the system is 3.7%, while for state-owned banks, it is 3.7%, making the anti-rating leaders’ indicators critically high.
Top 10 Banks with Worst NPL Performance
- Garant bank — 9,9%
- AVO Bank — 8,8%
- Yangi bank — 7,4%
- Ipoteka bank — 6,3%
- Biznesni rivojlantirish banki — 5,9%
- Poytaxt bank — 5,6%
- Mikrokreditbank — 4,9%
- Asaka bank— 4,7%
- TBC bank — 4,5%
- Kapital bank — 4,4%
System context
The total loan portfolio of the banking system amounted to 582.2 trillion soums, of which 21.3 trillion (3.7%) were non-performing loans. State-owned banks also hold a 3.7% NPL share (14.6 trillion out of a 394.9 trillion portfolio).
Top scores:
- UzKDB Bank, Octobank, Uzum bank — 0,0%
- Apex bank — 0,1%
- Madad Invest bank, Open bank — 0,3%
What does this mean
Garant bank’s high NPL (almost 10%) is an alarm signal that requires increased reserves and possibly additional capitalization. AVO Bank and Yangi bank are also in the risk zone with indicators above 7%.
Mortgage Bank with 6.3% NPL is experiencing problems. Business Development Banks with 5.9% NPL may face difficulties due to working with the risky segment of SMEs.
The largest banks – the National Bank (3.3%), Agrobank (3.4%), Uzsanoatqurilishbank (3.4%) — have significantly lower indicators, indicating a more conservative lending policy.
