Tashkent, Uzbekistan (UzDaily.com) — Moody’s Ratings has confirmed the baseline credit assessment (BCA) and adjusted BCA of Uzbekistan’s Hamkorbank at b1, the long-term deposit rating at B1, the short-term deposit rating at Not Prime (NP), and the counterparty risk rating (CRR) at Ba3/NP for long- and short-term operations. The counterparty risk (CR) rating was also confirmed at Ba3(cr)/NP(cr). The outlook for the long-term deposit ratings remains stable.

The rating confirmation reflects the bank's strong financial profile, including high asset quality, stable capital base, strong profitability, and reliable funding.

Hamkorbank continues to maintain good asset quality, which is expected to persist due to favorable economic conditions in Uzbekistan, a diversified loan portfolio, and secured retail loans. The bank's non-performing loans (NPLs) account for just 1.5% of total assets as of mid-2024, while the share of impaired loans stood at 1.7% as of January 2025.

Hamkorbank’s profitability is likely to remain strong, supported by significant net interest income and profitable non-banking operations, such as cross-border money transfers. In 2024, the bank reported a net profit of 1.4 trillion soums, an increase of 200 billion soums compared to 2023, contributing to a high return on average assets (ROA) of 5%.

Moody’s expects the bank’s capital position to remain stable, with the total capital-to-risk-weighted assets ratio expected to stay within the 14-15% range over the next 12-18 months. The bank maintains strong internal capitalization, with a return on equity (ROE) of around 30% from 2021 to 2024.

Additionally, the bank’s liquidity remains healthy, accounting for about 20% of total assets at the end of 2024, with long-term borrowings from international financial institutions making up about 44% of liabilities as of mid-2024.

The stable outlook for the long-term deposit ratings reflects expectations for the stability of the bank's credit profile over the next 12-18 months. An upgrade of the ratings could occur if the bank maintains high asset quality, profitability, and capital adequacy. Conversely, a downgrade could happen if there is a significant deterioration in these key financial indicators.