The agency said that uzA+ rating holder characterizes very high potential for modern and full implementation of their financial liabilities before creditors, depositors and investors.

The rating reflects support of the government, brand recognition, strong position of the bank in the market, good assets quality, sustainable liquid position and adequate capitalization, as well as good financial result of the activities. The rating reflects favourable growth perspectives, intensive operations in main banking service market segments, as well as clear strategy of the bank, directed at further developing and diversifying business. At the same time, the rating takes into account fast growth of assets and related risks, significant level of industrial and clientele concentration of the bank’s business, as well as potential risks related to the strategic growth and possible purchase of new assets.

The business scale of the bank is increasing stably. The assets of the bank grew by 36.91% year-on-year to 1.05 trillion soums in 2010. The significant growth of the assets is connected with the growth of loan portfolio, which increased by 30.6% year-on-year to 555.5 billion soums.

Loan portfolio of Ipoteka Bank rated as concentrated in the reporting period as loans to industry sector made up over 52.2% of loan portfolio.

Ipoteka Bank successfully manages its credit risks and quality of assets rates as good. The bank manages credit risks through establishment of maximum risk size, which the bank can accept on separate counteragents, geography or industrial risk concentration.

Ahbor-Reyting believes that in near future the bank can significantly increase loans issued within the project financing.

Ipoteka Bank has medium level of the assets liquidity (40.48% in 2010) and liquid position of the bank is rated at favourable. At the same time, existence of large positions (by industries and clients) at clientele accounts and potential growth of business scale increase necessity to further strengthen funding base of the bank. The coefficient of current liquidity of Ipoteka Bank made up 73.2% in considered period.

During last several years, Ipoteka Bank demonstrated stable income grown on its main activity. Ahbor-Reyting believes that interest margin of Ipoteka Bank will be in high level compared to other banks in short-term period due to the growth of retail (mortgage) crediting. However, the pressure to margin will be significant. It is expected that the profitability of the bank from main activity will be continued.

Ipoteka Bank’s capitalization rated as adequate in the reporting period. The agency positively rated readiness of shareholders of the bank to support capital, if required.

In 2010, the capital adequacy of Ipoteka Bank made up 24.6% (21.4% in 2009) in line with international accounting standards, while the first level capital adequacy, calculated in line with national accounting standards, reached 21% (19.4% in 2009). These figures made up 23.7% and 22.5% respectively in the first quarter of 2011.