Rating of Asaka Bank reflects absolute state support, brand popularity and strong position of the bank in the market, good assets quality and sustainable liquid position and adequate capitalization, as well as good financial results. At the same time, the rating takes into account high level of credit risks, moderate, but growing profitability of the banks, client and industry concentration of business, potential risks related with growth strategy and possible purchase of new assets. At the same time, the agency took into account that Asaka Bank is with state participation and plays important role in financing corporate sector in strategic industries of Uzbekistan’s economy. It also takes into account clientele base and social position of the bank for internal market.

The agency said that Asaka Bank demonstrated positive financial results in 2009. Main source of operational income of Asaka Bank is net interest income, which made up 54.1 billion soums in 2009 or grew by 67.46% year-on-year due to growth of loan portfolio in absolute expression and in percentage from total assets.

Asaka Bank manages credit risks successfully enough and quality of assets currently evaluated as good. Assets quality of Asaka Bank is evaluated as acceptable and the level of credit concentration is decreasing stably.

As of 31 December 2009, the volume of net loan portfolio made up 954.5 billion soums, which grew by 18.4% year-on-year. Loan portfolio is, first of all, corporate. At the end of 2009, the corporate segment accounted 84.89% (86.71% in 2008) of all bank’s credits.

Credit investments of Asaka Bank in nine months of 2010 grew by 22.7% year-on-year to 216.7 billion soums. In the reporting period, the bank’s clients received loans for 650.8 billion soums. The bank also issued 326.2 billion soums as investment loans. The structure of loan portfolio shows that Asaka Bank contributes to development of business sector.

Despite that funding base of the bank are mainly short-term, the agency evaluated opportunities of Asaka Bank to attract funds as high compared to majority of other banks in the sector due to strong state support. The agency also said that the bank has acceptable level of liquid assets (38.2% in 2009) and liquid position of Asaka Bank is considered as favourable.

Corresponding growth of capital base of the bank compared to growth rate of business scale allows Asaka Bank to support capital adequacy at the acceptable level. At the same time, the bank carries out active management of capital adequacy level to protect from risks.

The agency said that in line with the presidential resolution of Uzbek President “On measures on further increasing investment activity of the state joint stock commercial bank Asaka” from 13 November 2009, the own capital of Asaka Bank increased to 379.6 billion soums in nine months of 2010.

The agency said that first level capital adequacy at the end of 2009 made up 28.3% in line with international accounting standards.