The uzB rating means average level of solvency of Turkiston Bank. Currently, the bank implements its financial liabilities in time and fully, but “margin of safety” is limited and ability to make timely payments depends from sustainable and favourable business environment and economic situation.

Assigned rating reflects stably improving financial results of the bank. Simultaneously, the rating takes into account high concentration of debtors and risks, related with fast growth of crediting, high share of operations with related sites, moderate capitalization and low profitability due to spending for growth of business. The rating also takes into account risks, related with stable growth of assets, large positions in loan portfolio, acceptable position of liquidity of the bank’s balance sheet.

In 2010, the business scale of Turkiston Bank expended in stable tempo. In 2010, the assets of the bank increased by 60.23% year-on-year in 2010 and made up 34.4 billion soums (21.5 billion soums in 2009). The volume of loan portfolio reached 17 billion soums in 2010 against 14.6 billion soums in 2009. Besides, Turkiston Bank continued to show growth of balance sheet figures in 2011. In the third quarter of 2011, the assets of the bank increased by 22.86% in the third quarter of 2011 and made up 42.3 billion soums.

At the reporting period, the quality of Turkiston Bank’s assets was rates as favourable. In 2010, the reserves for depreciation of loan portfolio made up 7.36% of the loan portfolio. The bank had no bad loans in the reporting period.

Liquid position of the bank is rated as in acceptable level. Liquid assets of the bank made up 38.2% of the bank’s assets. At the same time, the coefficient of current liquidity of the bank made up 103.59% (63.98% in 2009).

Capitalization of Turkiston Bank in 2010 is rated as adequate. Due to additional investments to capital base, aggregate capital of the bank rose by 85.11% to 10.6 billion soums (5.7 billion soums in 2009).

According to the bank’s report, the coefficient of common capital adequacy and the first level capital adequacy made up 38.7% and 47.1% (26.7% and 28.5% in 2009) respectively. The bank is planning to increase its charter capital to 13.2 billion soums to ensure growth of adequacy figures.

Ahbor-Reyting believes that profitability figures of Turkiston Bank will remain in good level, but it is possible that the bank will direct more resources to reserve on loan portfolio depreciation due to fast growth of loan portfolio.

Turkiston Bank is active participant of investment market of Uzbekistan. In 2010, the investment portfolio of Turkiston Bank rose 2.2 times to 2.3 billion soums.