Tashkent, Uzbekistan (UzDaily.uz) — International rating agency Fitch Ratings has downgraded Anor Bank’s Long-Term Issuer Default Ratings (IDRs) in foreign and local currency to CCC+ from B-. The bank’s Viability Rating (VR) was also downgraded to ccc+ from b-, Fitch Ratings said.
The downgrades reflect a significant deterioration in Anor Bank’s underlying capitalisation under IFRS standards and the bank’s high risk profile. Over the past four years, Anor has maintained rapid business growth while operating with limited capital buffers in Uzbekistan’s volatile operating environment.
The bank’s Fitch Core Capital (FCC) ratio fell to 0.9% at the end of 2025 from 4.3% a year earlier. Fitch said this was one of the lowest ratios among banks rated by the agency globally. The decline was driven by aggressive loan growth that was not sufficiently supported by shareholder contributions.
At the same time, Anor’s regulatory Tier 1 capital ratio stood at 10.4% at the end of 2025, only slightly above the 10% minimum requirement. The bank has maintained only a small buffer above the regulatory capital requirement over the past four years.
On 9 September, Anor’s Supervisory Board approved a set of measures to restore capitalisation by the end of 2026. These include a 100 billion soum capital contribution from the shareholder and the sale of intangible assets.
After these measures are implemented, Fitch expects the FCC ratio to rise to around 5% by the end of 2026.
The agency also highlighted Anor Bank’s high risk profile and aggressive loan expansion. The bank’s gross loan portfolio increased by 50% in 2025 and more than tenfold over the past four years, although the growth started from a low base.
Asset quality deteriorated in 2025. The share of impaired loans increased from 3% at the end of 2024 to 5% at the end of 2025, while Stage 2 loans rose from 4% to 9%. Fitch expects asset quality indicators to deteriorate further, although the risks could be partly contained by stronger risk controls, low loan concentration and dollarisation, as well as the expansion of secured lending.
The bank’s operating profit fell to 0.3% of risk-weighted assets in 2025 from 2.4% a year earlier. Performance was affected by lower margins, the expansion of lower-yielding lending and higher deposit funding costs. The cost of risk increased to 4.5% from 3.6% in 2024.
Deposits from the non-government sector are Anor’s main source of funding, primarily deposits from individuals.
At the end of 2025, such deposits accounted for 61% of the bank’s liabilities, while government deposits represented 13%. At the end of the first half of 2026, liquid assets accounted for 15% of total assets, which Fitch considers an adequate level.
Anor Bank is a private digital bank established in 2020. At the end of the first half of 2026, it accounted for 2% of loans and 3% of deposits in Uzbekistan’s banking sector. More than 75% of its loan portfolio at the end of 2025 consisted of small loans to individuals and self-employed borrowers. The bank is also expanding lending to small and medium-sized businesses.
Fitch maintained its assessment of the operating environment for Uzbek banks at b+/Stable, noting progress in banking reforms, including stronger regulation and efforts to address accumulated risks. Uzbekistan’s economy grew by 8.5% year-on-year in the first half of 2026.
A further downgrade of Anor Bank’s ratings could follow if the FCC ratio fails to reach 5% because of delays in or incomplete implementation of the approved capital restoration plan. The ratings could also be lowered if liquidity deteriorates significantly and the risk of default on senior obligations increases.
An upgrade would require a sustained increase in the FCC ratio above 6%, potentially accompanied by slower business growth in line with the bank’s internal capital generation or additional shareholder contributions.
