Commercial banks of Uzbekistan earned 15 trillion 262 billion sum in net profit for January–September. This is 40.3% higher than last year's result for the same period.

The nine-month figure amounted to 98.5% of the entire profit for last year — meaning the annual result will be exceeded with a margin.

One bank accounted for nearly half the growth

Behind the impressive overall figure lies extremely uneven distribution.

«Ipoteka-bank» profit increased by 1 trillion 969.8 billion sum over the year, accounting for 44.9% of total system growth. Excluding this bank, the rest showed growth of 22.4% — twice lower than the stated forty percent.

The bank rose from 19th place to first: with 102.5 billion sum for nine months last year, the result increased 20-fold. As noted earlier, the jump was mainly due to reserve adjustments rather than operational growth.

Top five

Profit exceeding one trillion sum was shown by five banks versus four a year earlier:

  • «Ipoteka-bank» — 2 trillion 72.3 billion;
  • Uznatсbank — 1 trillion 552.2 billion;
  • Hamkorbank — 1 trillion 480.4 billion;
  • «Kapitalbank» — 1 trillion 313 billion;
  • «Uzpromstroybank» — 1 trillion 207 billion.

Following in the top ten — «Halk bank» (837.3 billion), «Ipak Yuli» (821.8 billion), «Trustbank» (766.8 billion), Orient Finans Bank (724.6 billion) and KDB Bank (644.7 billion).

The concentration dynamics are telling: the top ten accounted for 74.8% of sector profit versus 80.6% a year earlier. Profit distribution is becoming slightly more even, though it remains concentrated at the top.

Private banks outpaced state banks

Nine banks with state stakes earned 4 trillion 649 billion sum — growth of 14.9%.

Twenty-five private banks showed 10 trillion 613 billion sum with growth of 55.4%. Their share of combined profit increased over the year from 62.8% to 69.5%.

However, the adjustment for «Ipoteka-bank» is significant here too: without it, private bank profit grew by 26.9%, not 55%.

Among state banks

«Halk bank» (3.1x growth) and Agrobank (5.2x growth from a modest base of 32.8 billion sum) showed the most notable increases. Significant growth also occurred at «Turonbank», Aloqabank and Asakabank.

Declines were recorded at «Uzpromstroybank» (minus 178.9 billion), Business Development Bank (minus 127.3 billion) and «Microcreditbank» (minus 141.3 billion).

Who grew, who lost

Of 34 banks, 24 increased profit, while 10 decreased it.

The largest absolute gains, besides the leaders, were at Uzum Bank (from 7.6 billion to 485 billion sum), InFinBank (from 196.5 billion to 530.7 billion) and APEX BANK, which moved from a 52.2 billion sum loss a year earlier to 179 billion profit.

Declines, besides those mentioned, occurred at ANORBANK (minus 131.4 billion), TBC Bank (minus 100 billion), Orient Finans Bank (minus 68.9 billion) and Asia Alliance Bank (minus 48.4 billion).

Two banks in losses

Nine months with negative results were completed by TBC Bank (minus 69.6 billion sum) and «Microcreditbank» (minus 50.4 billion). A year earlier, both were profitable with results of 30.3 billion and 90.9 billion sum respectively.

How to read this

The overall figure of 15.3 trillion sum and 40% growth sound like a picture of confident sector growth. The actual situation is more complex.

System-wide growth excluding one bank effect is around 22%, which against current inflation appears moderate. Simultaneously, two banks entered losses, ten saw profit declines, and several private players with aggressive portfolio growth face rising risk costs.

For depositors, a simple conclusion follows: sector profitability overall says little about a specific bank's condition. Focus should be on individual indicators — capital adequacy, non-performing loan ratio, reserve dynamics.

Data are based on operational reporting. This material is informational in nature and is not an investment recommendation.