Assigned Alokabank rating reflects high business activity of the bank in the market and dynamic developing commercial network, adequate capitalization and balanced liquid position. The rating also takes into account risks, related with the fast growth of the bank’s assets and regional concentration of the business. The firm strategy, directed at expanding business scale and strengthening position in the market and support of shareholders, gives additional stability of the business of Alokabank.

In the considered period, the bank’s business expanded in stable tempo. The assets of the bank reached 381.4 billion soums or grew by 48.1% year-on-year in the first quarter of 2011. The volume of loan portfolio of the bank rose by 5.57% and made up 45.35% of total assets or 172.94 billion soums. Inter-bank assets rose 2.5 times and made up 19.28% of assets. Alokabank is one of the active participants of local investment market. In the reporting period, the investments of the bank grew four times to 25 billion soums or 6.57% of assets (2.26% in 1Q 2010). All income-bearing assets of the bank rose by 37.24% and made up 71.20% of the assets of the bank (76.83% in 1Q 2010).

In the considered period, the assets quality of the bank rated as in favourable level. The bank had no bad loans. At the same time, the unsecured loans made up 0.03% (0.27% in 1Q 2010) of loan portfolio. The loan portfolio was mainly secured by real estate (47.80%), guarantees (20.70%), transport means (15.75%) and equipment (14.22%).

The agency said that about 97.19% of the bank’s loans are classified as good and the reserves of Alokabank on possible loan loss made up 0.38% of aggregate loan portfolio.

Liquid position of Alokabank rated high in the reporting period. The figure of total liquid assets of Alokabank rose by 60.62% to 21.76% assets of the bank (20.06% in 1Q 2010) in the first quarter of 2011. Simultaneously, current assets and current liabilities of Alokabank grew by 58.92% and 14.7% respectively in the first quarter of 2011. At the same time, the coefficient of current liquidity of Alokabank increased from 42.99% in the first quarter of 2010 to 59.57% in the first quarter of 2011.

The ratio of loan portfolio to deposits and attract resources at money markets fell from 84.11% to 59.8%, which can be explained with relatively high growth of deposits compared to the growth of loan portfolio.

The main source of funding of Alokabank is clientele accounts, share of which in aggregate volume of liability of the bank in the first quarter of 2011 reached 82.98%. At the same time, total deposits of the clients made up 87.47% of attracted funds in the reporting period. About 88.23% of liabilities of Alokabank are with the term of less than a year, in the result of which borrowed funds of the bank rated mainly as short-term. It is also worth to note that long-term borrowings of the bank, loans, increased by 15.41% and made up 8.86% of the bank’s liabilities.

The stable growth of own capital remains important part of Alokabank’s strategy. In the reviewed period, the growth of own capital of Alokabank made up 40.57% year-on-year to 66.5 billion soums. The equity capital of the bank in the first quarter of 2011 grew by 44.22% to 49 billion soums.

The coefficient of capital adequacy and first level capital of Alokabank made up 19.60% and 19.80% respectively. The capital base adequacy of Alokabank made up 17.44% in the first quarter of 2011.

Profitability of Alokabank is considered as sustainably growing. Net income of the bank in the reporting period grew by 71.93% to over 2 billion soums. Simeltenously, the profitability figures improved as well. In the first quarter of 2011, the profitability of assets and own capital made up 0.63% and 3.54% respectively (0.52% and 2.86% in 1Q 2010) in the first three months of 2011.

Overall, Ahbor-Reyting positively rates results of the Alokabank’s activities in the first quarter and strengthening of its market position.