Tashkent, Uzbekistan (UzDaily.com) — The Center for Economic Research and Reforms (CERR) has published the updated Bank Activity Index for the first quarter of 2025, covering the performance of 35 commercial banks across Uzbekistan.

For the first time, the index is calculated using a new classification system, dividing banks into two groups: 20 large and 15 small institutions. This change reflects the ongoing transformation of the sector and aims to enhance transparency and analytical depth.

Compared to last year, the study now covers a broader scope — expanding from 28 to 35 banks. In 2024, the analysis included 17 large and 11 small banks. The index relies on 27 key indicators aligned with Basel Committee international standards, allowing for meaningful comparison of bank performance against national averages.

The methodology assesses asset growth, loan portfolio dynamics, profitability, liquidity, and operational stability, offering a comprehensive view of sectoral performance and competitiveness.

Performance of Large Banks

At the start of 2025, Davr Bank, Tenge Bank, and Anor Bank were reclassified as large banks after meeting updated criteria: holding assets equal to at least 1% of total system-wide banking assets (around 7 trillion soums or US$5.4 billion) and operating in at least one-third of the country’s regions. Banks not meeting these thresholds are classified as small.

Kapitalbank retained its top position among large banks.

Hamkorbank climbed to second place, driven by improvements in intermediation, asset quality, and managerial efficiency.

Asia Alliance Bank held on to third place with strong core metrics.

New entrant Anor Bank debuted impressively in fourth position.

Trustbank slipped three spots to round out the top five.

Also of note:

Uzpromstroybank moved up one position.

Aloqa Bank and Business Development Bank maintained steady rankings.

UzNatsBank and Microcreditbank dropped six positions each.

Invest Finance Bank fell four places.

Orient Finance Bank, Ipoteka Bank, and Agrobank declined by two.

Ipak Yuli and Xalq Bank slid one position each.

Microcreditbank’s steep decline is linked to a 10-point drop in capital adequacy and a 6-point fall in asset quality, highlighting the need for improved risk management and financial resilience.

Challenges in Stability and Efficiency

Several large banks showed negative trends across indicators related to sustainability and operational effectiveness:

In financial intermediation, Turon Bank dropped eight spots, while Asaka Bank and Business Development Bank each lost two.

In financial inclusion, Trustbank fell five positions; Asia Alliance Bank, Invest Finance Bank, and Ipak Yuli Bank each lost four.

Asset quality remains a key challenge:

Ipoteka Bank ranks low for return on assets (ROA) and non-performing loan (NPL) ratios.

Significant drops were seen in Microcreditbank (–6), Business Development Bank (–5), Kapitalbank, Trustbank, Turon Bank, and Agrobank (–3 each).

In profitability:

Agrobank ranked in the bottom 20.

Xalq Bank fell three places; Aloqa Bank, Uzpromstroybank, Turon Bank, and Asaka Bank fell two each.

Management efficiency worsened for:

Asaka Bank (–7),

Invest Finance Bank (–6),

Trustbank and Xalq Bank (–4 each),

Microcreditbank (–4).

In liquidity (including high-liquid asset share, LCR, and NSFR):

Turon Bank fell four places,

Aloqa Bank dropped seven,

UzNatsBank declined by five.

Performance of Small Banks

Following the reclassification, Eron Soderot Bank, Uzum Bank, Apex Bank, and Smart Bank are now categorized as small banks.

Among 15 small banks:

7 improved their rankings,

Only Octobank showed a minor decline (–1 position).

Universal Bank retained the top spot by strengthening profitability and financial intermediation. Hayot Bank surged eight positions to second place. TBC Bank rounded out the top three with improvements in intermediation, asset quality, governance, and earnings.

Notably, UzKDB Bank improved its capital adequacy by 5 points and Garant Bank by 1. However, most small banks showed a negative trend in this metric, indicating a need for stronger capital buffers and resilience.