The rating reflects important role of Asaka Bank in banking system of Uzbekistan and existence of support of the government, sustainable liquid position, high capitalization, access to external borrowing, as well as improving of financial results in the third quarter of 2012. At the same time, the rating takes into account high level of credit risks, significant clientele and industrial concentration of business, as well as potential risks, related to growth strategy. It also takes into account that the bank is owned by the government and its role in large corporative financing of economy, as well as scale of its clientele base and strong positions in internal market.

In the reporting period, the financial figures of Asaka Bank grew with stable tempo. In the third quarter of 2012, assets of the bank rose by 24.62% year-on-year and reached 4.1 trillion soums (3.3 trillion soums in 3Q 2011). Total income-bearing assets of the bank rose by 25.01% to 71.96% of total assets of the bank. At the same time, large part of income-bearing assets fell to share of issued loans, which rose by 15.15% year-on-year to make up 59.02% of income-bearing assets (64.07% in 3Q 2011).

In the reporting period, credit portfolio of the bank was rated as concentrated on sectors of economy, as almost 58.46% of loan portfolio fell to share of industry. Other part of income-bearing assets of Asaka Bank rose by 42.59% in the third quarter of 2012. The growth of income-bearing assets was achieved due to increase of inter-banking assets by 73.94% and liabilities of clients by 33.4%. In the reporting period, trade assets of the bank rose by 27.03 year-on-year, while the volume of turnover with securities decreased by 0.47%. It is worth to mention that material-technical base of the bank rose 2.3 times to 1.8% of its assets (0.96% in 3Q 2011).

Asaka Bank’s liquid position is rated as in favorable level. In the reporting period, all liquid assets of the bank rose by 44.69% year-on-year and its share in total assets made up 27.04% of assets (23.29% in 3Q2011). Current assets and current liabilities of the bank rose by 46.11% and 36.31% respectively in the third quarter of 2012.

At the same time, coefficient of current liquidity of Asaka Bank strengthened from 61.09% in the third quarter of 2011 to 65.48% in the third quarter of 2012 and it is rated as high level. In the reporting period, Asaka Bank achieved high growth of deposit base compared to growth of loan portfolio.

At the same time, ratio of loan portfolio to deposits and attracted resources from money markets decreased and made up 58.82% (64.83% in 3Q 2011), which reflects that the bank has enough potential for further increasing loan portfolio due to attracted resources. Term resource base of the bank rose by 15.63% year-on-year. At the same time, ratio of loan portfolio to term resource bank fell from 98.04 in the third quarter of 2011 to 96.48% in the third quarter of 2012.

Business activity and financial stability of Asaka Bank is rated as acceptable. In the third quarter of 2012, ratio of income-bearing assets to deposits and attracted resources made up 99.66% (101.19% in 3Q 2011). Besides, ratio of all liabilities to income-bearing assets of the bank reached 120.83% (121.04% in 3Q 2011).

In the reporting period, attracted inter-banking loans and inter-banking assets of the bank rose by 67.08% and 73.94% respectively. At the same time, ratio of inter-banking loans to inter-banking assets decreased from 55.78% in third quarter of 2011 to 53.58% in the third quarter of 2012.

Asaka Bank has stably growing capital base. In the third quarter of 2012, own capital of the bank rose by 23.58% year-on-year to 536.3 billion soums (434 billion soums in 3Q 2011). Equity capital of the bank rose by 11.99% to 354.7 billion soums (316.7 billion soums in 3Q 2011). At the same time, share of undistributed income in own capital made up 21.25%.

Capital adequacy of Asaka Bank was rated as favourable level. Coefficient of common capital and the first level capital adequacy made up 15.3% and 15.7% respectably (14.7% and 15.2% in 3Q2011). The coefficient of leverage was in stable level. In the third quarter of 2012, own capital adequacy of Asaka Bank made up 13.06% (13.17% in 3Q 2011).