The rating reflects the growth of capitalization of the bank, support of shareholders, as well as improvement of financial results. At the same time, the rating takes into account risks related to fast growth of assets and significant positions in crediting.

In the reporting period, the business scale of the bank grew stably. Assets of Turkiston Bank grew by 75.64% year-on-year in the reporting period and made up 40.2 billion soums (22.9bn soums in 2Q 2010). The volume of loan portfolio reached 24.7 billion soums and it made up 61.62% (67.63% in 2Q 2010) of the bank’s assets.

Assets’ quality of Turkiston Bank is valued as acceptable in the considered period. In the second quarter of 2011, there were no bad assets at the bank’s balance. At the same time, the loan portfolio made up 91.88% of income-bearing assets of the bank.

It is necessary to note that the volume of unsecured loans increased from 0.77% in total loan portfolio in the second quarter of 2010 to 1.59% in the same period of 2011. At the same time, the loans, characterized as “good” and “standard”, made up 95.99% and 3.84% of the loan portfolio of the bank in the second quarter of 2011.

Liquid position of the Turkiston Bank’s balance is strengthening step-by-step and values as favourable. In the second quarter of 2011, share of liquid assets made up 44.79% of total assets of the bank. Current assets grew three times in the reporting period, while current liabilities jumped by 43.70%. At the same time, current liquidity grew from 42.29% in the second quarter of 2010 to 96.35% in the second quarter of 2011.

At the same time, term resource base of the bank grew 5.5 times year-in-year in the second quarter of 2010. At the end of the second quarter, the ratio of loan portfolio to term resource base of the bank made up 223.26% (793.68% in 2Q 2010).

Main part of borrowed funds of Turkiston Bank fell to share of clients. In the end of the second quarter of 2011, the bank’s borrowed funds made up 97.68% of liabilities. The deposits of clients reached 98.08% of all attracted resources of the bank. Liabilities of the bank are considered as short-term as 98.13% of liabilities of the bank has term up to a year.

At the background of potential support of shareholders, Turkiston Bank’s capitalization is considered as adequate compared to business scale. It is worth to mention that in a year, the bank’s equity capital grew twice to 12.5 billion soums at the end of the second quarter of 2011. Undistributed net income grew by 53.47% in the reporting period. Own capital of the bank grew twice and reached 13.5 billion soums (6.7 billion soums in 2Q 2010).

At the same time, own capital adequacy of the bank rose from 29.4% in the second quarter of 2010 to 33.58% in the second quarter of 2011. At the same time, the capital adequacy was strengthened. In the reporting period, capital adequacy and first level capital adequacy of Turkiston Bank made up 40.3% (23.7% in 2Q 2010) and 42.2% (30.9% in 2Q 2010) respectively.

In the reporting period, average interest rates of loan portfolio decreased to 19.49% (20.10% in 2Q 2010). At the same time, profitability of loan portfolio of Turkiston Bank decreased from 9.07% in the second quarter of 2010 to 7,42% in the second quarter of 2011.

Despite this, the net interest margin and interest spread of the bank remained at stable level. In the second quarter of 2011, net interest margin and interest spread of Turkiston Bank made up 6% and 5.81% respectively (5.82% and 5.69% in 2Q 2010).