Tashkent, Uzbekistan (UzDaily.uz) — Fitch Ratings has affirmed the long-term issuer default ratings of Uzbekistan’s Orient Finans Bank (OFB) in foreign and local currency at B+, with a Stable Outlook.
The bank’s Viability Rating was also affirmed at b+, while its Government Support Rating remains at “No Support” (ns), according to Fitch Ratings.
OFB’s ratings are based on its standalone credit profile. Fitch highlights the bank’s strong profitability and capital adequacy, which offset its limited market position, rapid loan growth in previous years, a credit portfolio whose quality has not yet been fully tested over time, and high concentrations of assets and liabilities.
Fitch has revised its assessment of the operating environment for Uzbek banks to b+/Stable from b/Positive.
According to the agency, the revision was supported by progress in banking-sector reforms over the past two years, including stronger banking regulation and a reduction in accumulated risks.
At the end of the first half of 2026, OFB accounted for about 2% of the assets, loans and deposits of Uzbekistan’s banking sector. The share of corporate loans in its portfolio fell to 59% at the end of 2025 from 65% a year earlier, amid expanded lending to small and medium-sized businesses and the retail segment.
At the same time, the bank’s loan portfolio remains concentrated. The 25 largest borrower groups accounted for 40% of the gross loan portfolio, equivalent to 1.1 times the bank’s capital, at the end of the first half of 2026.
Dollarisation of loans continued to decline. The share of foreign-currency loans fell to 26% at the end of the first half of 2026 from 50% at the end of 2024. Fitch attributes the decline to increased retail lending and the repayment of a large foreign-currency loan.
The agency also noted an increase in problem loans. The share of Stage 3 loans rose to 1.2% of the portfolio at the end of 2025 from 0.2% a year earlier, while the share of Stage 2 loans increased to 19.2% from 2.6%. Fitch expects the share of impaired loans to rise further in 2026–2027, but forecasts that it will remain below 5%.
OFB’s profitability remains strong. Its operating profit to risk-weighted assets ratio was 7.6% in 2025, compared with 7.7% in 2024. Net interest margin reached 11.3% in 2025, while the cost-to-income ratio stood at 26%.
Fitch expects profitability to decline somewhat in 2026–2027 due to higher costs of risk, but considers that it will remain strong.
The bank’s Fitch Core Capital (FCC) ratio increased to 23.5% at the end of 2025 from 20% a year earlier.
The regulatory Tier 1 capital adequacy ratio stood at 21.4% at the end of the first half of 2026, compared with the statutory minimum of 8.5%.
Fitch forecasts that the FCC ratio could rise to around 26% by the end of 2026, supported by strong profitability and slower loan growth.
OFB’s ratings could be downgraded in the event of a significant deterioration in asset quality that results in a sustained weakening of financial indicators and lower capitalisation. In particular, negative rating action could follow if the FCC ratio falls below 12%.
An upgrade would require further improvement in Uzbekistan’s operating environment, a stronger bank risk profile and continued stable asset quality, strong profitability and capitalisation.
