The rating uzA reflects high level of solvency of Khalq Bank. The rating characterizes high ability of the bank timely and fully execute its financial liabilities compared to other banks, which have lower credit rating. But the solvency of the bank is sensible to impact of unfavorable changes in commercial, financial and economic conditions, compared to banks with the higher rating.

In the reporting period, the business scale of the bank expanded with the stable tempo. In the second quarter of 2011, the bank’s assets grew by 36.26% year-on-year to 1.58 trillion soums. The growth of net loan portfolio made up 32.54%, which reached 781.3 billion soums in the second quarter of 2011 or its share in total assets made up 49.43%.

In the reporting period, the quality of the bank’s assets rates at acceptable level. According to report of Khalq Bank, the bank has bad loans, which made up 0.04% of loan portfolio (0.07% in 2Q 2011). About 99.95% of loans rated as good, 0.04% - as doubtful and 0.001% - as hopeless.

At the same time, the reserve on possible loss of loans decreased by 58.22% and made up 0.07% (0.15% in 2010) of the loan portfolio. The volume of large loans in the reported period reached 18.4 billion soums or 2.37% of the bank’s loan portfolio. In the reviewed period, the bank’s balance does not have loans, allocated to affiliated persons and Ahbor-Reyting considers this as positive rating factor. Liquid position of Khalq Bank rated as high. In the reporting period, all liquid assets of the bank rose 2.42% to 13.71% of the bank’s assets (15.54% in 2Q 2010).

At the same time, current assets and current liabilities of the bank grew by 25.82% and 11.72% respectively and made up 241.8 billion soums and 359.7 billion soums respectively. Coefficient of current liquidity of the bank decreased from 59.71% in the second quarter of 2010 to 67.24% in the same period of 2011. Ahbor-Reyting rates the level of coefficient of current liquidity of Khalq Bank as high.

Main source of Khalq Bank funding is clientele accounts, share of which in total volume of liabilities made up 73.83% in the second quarter of 2011 (74.02% in 2Q 2010). At the same time, total deposits of clients made up 89.38% of attracted resources in the reporting period. At the same time, 49.79% of deposits of the clients of the bank are with term of over a year.

Important part of Khalq Bank’s strategy is stable growth of own capital. In the second of 2011, own capital rose by 34.05% to 201.5 billion soums. At the same time, the coefficient of capital and the first capital adequacy of Khalq Bank made up 11.8% and 11.6% respectively (12.5% and 12.7% in 2Q 2010). The level of own capital adequacy in the second quarter reached 12.75% (12.78% in 2Q 2010).