The rating uzB++ reflects adequate level of credit solvency of Savdogarbank. The bank has high ability to fulfill its financial liabilities fully and in time compared to other banks, possessing lower solvency rating.

Assigned rating of Savdogarbank reflects sufficient development of commercial network among compared banks and good geographic diversified business, traditional clientele base and acceptable financial results of its activities. The rating also reflects high growth of the assets and related risks, moderate capitalization, relatively limited funding base and growth of sensitivity of liquid position of balance to external funding sources. Positive outlook of the rating reflects expectations of Ahbor-Reyting on supporting adequate capitalization and liquid position, as well as further increasing financial results, which will help to raising rating of the bank.

Savdogarbank significantly improved its financial result at the context of the growth of its business scale. Income quality is rated as good, while sources – stable. The growth of profitability helped to keep efficiency of expenses at developed commercial network and increasing of efficiency of operation activity, In future, adequate classification of the assets and state of reserving on credit portfolio will be considered as important rating factors. Quality of risks and assets management of the bank is rated as acceptable, while level of crediting concentration as good. Level of problem loans and loan write-off is supported in minimum level, but low level of reserves on possible losses on loans for a long-time can create some pressure to quality of assets and credit rating of the bank.

For last several years, Savdogarbank demonstrated stable growth of income from main activity along with increase of profitability from loan portfolio. In the reviewed period, the bank increased interest income by 6.93% year-on-year. Simultaneously, interest income of the bank decreased by 0.35% in the reviewed period and net interest income rose by 17.75% year-on-year. Despite growth of net interest income, main source of income generation of the bank was net commission income, which accounted 53.74% (51.9% in 2009) from total operational income of the bank. The volume of loan portfolio of Savdogarbank made up 100.3 billion soums in 2010. At the same time, the loan portfolio’s profitability grew by 14.58% in 2010 (13.54% in 2009). Taking into account this, in near future Ahbor-Reyting expects that the bank will keep profitability level due to growth of commission income. But, the agency said that potential growth of crediting will increase share of net interest income in Savdogarbank’s income source.

Main part of funding of Savdogarbank receives from its clients. At the same time, the bank is actively funding its operations due to attracted resources at interbank market in recent years. In 2010, the client’s deposits grew by 24.7% to 156.7 billion soums. At the same time, average term of loan funding base of Savdogarbank remains short-term.

Liquid position of the bank is rated as high. In 2010, the coefficient of current liquidity of Savdogarbank made up 71.7% in 2010 against 51.3% in 2009. In the first quarter of 2011, the indicator made up 63.7%.

Capitalization of Savdogarbank is rated as low among compared banks. At the same time, it is worth to note that the charter capital of the bank increased by 83% to 22.9 billion soums. Simultaneously, the level of own capital adequacy is gradually increasing.