The rating of the bank reflects existence of the state support, brand recognition and strong position of the bank in the market, good quality of assets, strong liquid position and adequate capitalization, as well as good financial results of the activity in the second quarter of 2011.

Being largest mortgage financial institute, Ipoteka-Bank holds one of leading positions in the banking sector on main parameters of financial activities. In the reporting period, Ipoteka-Bank’s business scale showed growth. Assets of the bank grew by 46.63% year-on-year to 1.373 trillion soums in the second quarter of 2011 (936.4 billion soums in 2Q 2010).

The loan portfolio of Ipoteka-Bank increased by 50.68% and made up 754 billion soums in the second quarter of 2011 (500.8 billion soums in 2Q 2010). The loan portfolio of the bank rated as concentrated by industries. Significant share of loans fell to share of loans issued to industry – 54.86% (45.24% in 2Q 2010), trade and catering – 9.56% (9.77% in 2Q 2010), construction – 6.69% (8.84% in 2Q 2010), transport and communication – 0.95% (1.02% in 2Q 2010) and other industries – 18.08% (22.94% in 2Q 2010).

Quality of assets of Ipoteka-Bank rated as high. In the second quarter of 2011, the loan portfolio had no bad loans. At the same time, the volume of unsecured loans fell by 65.04% and made up 0.08% of loan portfolio of the bank in the second quarter of 2011.

Simultaneously, Ahbor-Reyting rates 95.7% of loans of the bank as good, 1.79% - as “standard” and 0.6% - as “sub-standard” and other part – as hopeless. At the same time, reserves of Ipoteka-Bank for possible loan loss grew by 86.12% to 0.81% of the bank’s loan portfolio. In the reporting period, aggregate volume of large loans of the bank rose by 18.96% and its share in loan portfolio decreased from 5.6% in the second quarter of 2010 to 4.42% in the second quarter of 2011. At the same time, the volume of issued loans to affiliated people decreased by 43.36% and made up 13.6 billion soums, while its share made up 1.81% of the bank’s loan portfolio (4.82% in 2Q 2010).

In the second quarter of 2011, Ipoteka-Bank supported positive liquid position. Liquid assets of the bank grew by 37.97% and made up 493 billion soums. At the same time, current assets of the bank grew by 36.78% and made up 47 billion soums, while current liabilities – 35.12% to 736.4 billion soums. In the result, the coefficient of liquid position of Ipoteka-Bank increased to 67.52% in the second quarter of 2011 (66.69% in 2Q 2010). At the same time, ratio of loan portfolio to term resource base made up 156.15% and Ahbor-Reyting says that the figure will be kept in favourable level in future.

Funding base of the bank is formed mainly due to clients’ accounts. The deposits and attracted resources at money markets increased by 58.41% year-on-year to 65.35% of the bank’s liabilities. Long-term liabilities of the bank reached 330 billion soums, which made up 26.92% of the bank’s liabilities. Term resource base of the bank grew by 77.14% in the second quarter of 2011.

Ipoteka-Bank is one of the largest banks of Uzbekistan on capital base volume. Own capital of the bank grew by 27.84% to 146 billion soums. Equity capital grew by 17.63% year-on-year to 65 billion soums. The coefficient of capital and the first level capital adequacy made up 18.6% and 16.3% respectively (22.9% and 20.2% in 2Q 2010). At the same time, leverage coefficient of the bank fell from 10.3% in the second quarter of 2010 to 9% in the same period of 2011. Own capital adequacy made up 10.7% in the second quarter of 2011 (12.28% in 2Q 2010).