Rating of Kapitalbank reflects high business activity of the bank in the market, strong market position in Tashkent region, high quality assets and balance liquid position, the agency said.

The rating also takes into account risks connected with fast growth of assets, geographic concentration of the business and low capitalization relatively to the scale of the bank. Good corporative management and clear strategy of the bank, directed to business diversification and regional expansion, provide additional stability to business, the rating agency noted.

The rating agency noted that Kapitalbank demonstrated positive financial results in reviewed period thanks to spending efficiency despite pressure on the significant investments to business development. The agency believes that profitability of the bank should increase further based on the growth of business and development of new directions of the activity. It added that the bank profitability will depend on Kapitalbank’s ability to control its credit and operation expenses.

Kapitalbank manages its risks successfully enough and assets quality of the bank evaluated as high. In recent years, the bank support favourable level of problem loans and write-offs.

Liquid position of Kapitalbank assessed as the balance, the agency said. Despite that short-term continues to lead in loan financing, Ahbor-Reyting believes that flexibility of Kapitalbank in terms of financing is high enough and has advantage compared to majority of the banks, first of all with good diversification level. The bank has acceptable level of liquid assets on the results of 2009 – 43.8% (55% in 9 months of 2009) and liquid position of the bank considered as favourable.

Corresponding growth of capital base of the bank compared to the growth of business scale allows Kapitalbank to support adequate capital at the high level. The agency said the capitalization of the bank is acceptable at the context of high growth of business scale. The agency believes that the capital adequacy should be higher that regulators’ norms in near future despite pressure from the growth of business scale and taking into account growth strategy and support of the shareholders.

As of 30 September 2009, Kapitalbank is among TOP-10 large banks of Uzbekistan with market share of assets – 2.4%, share of loans – 1.9% and share of deposits – 2.9.