CUA was founded and registered by the Ministry of Justice of Uzbekistan on 6 June 2005. The main directions of the Association’s activities are uniting credit unions, represent and protect their rights and interest, etc.

As of 1 January 2010, CUA unites 29 credit unions, of which 12 are permanent members and 17 are partners. In 2009, total number of CUA members rose by 9.

Simultaneously, as of 1 January 2010, the size of Alyans Garant Stabilization Fund, which guarantees deposits of credit unions, increased by 20.6%. In the result of 2009, the fund guaranteed 8,207 deposits (6,994 in 2008) for total sum of 5.43 billion soums (4.5bn soums in 2008).

At the end of 2009, CUA members and partners united over 83,760 members, which grew by 52.5% year-on-year.

In the reporting period, total assets of the CUA credit unions rose by 62,7% year-on-year to 94.5 billion soums as of 1 January 2010.

Income-bearing assets made up 91.44% of total assets ad 2.4% were quick assets – cash and money and bank deposits, 3.2 – net resources and 4.6% - other assets. At the same time, the major part of income-bearing assets was credits, issued to members of credit unions.

Total volume of loan portfolio of the CUA credit unions in 2009 rose by 59.7% year-on-year to 84.3 billion soums in 2009.

Analysis of loan portfolio on debtors type showed that 96.03% of debtors were individuals (94.96% in 2008), including 67.4% - male (66.3% in 2008) and 28.6% - female (28.7% in 2008).

Legal entities, mainly private enterprises, account 4% of loan portfolio in 2009 compared to 5.03% in 2008.

In line with the report, 46.4% loans were directed to financing commercial project of the credit unions’ members. Loans, issued to satisfy personal need, made up 27.02%, crediting enterprises of industrial sector – 6.5%, agriculture – 15.02%, services – 3.54% and purchase of real estate – 1.52%.

It is worth to note that large credit unions mainly direct their loans to crediting industrial sector. Medium credit unions issued major part of loans to trade, service and agriculture sectors. Large share of loans of small credit unions were used to consumer credits.

Credit unions create reserves on possible losses to increase quality and reliability. Aggregate sum of formed reserves on possible losses in 2009 made up 1.2% of total loan portfolio (1.6% in 2008), or down by 0.4 percentage points year-on-year.

Analysis of loan portfolio displays that 68.58% of issued loans were allocated from 180 to 365 days (from 6 to 12 months) and 28.67% were loans, issued over a year, and 2.75% loans were allocated for up to 6 months. As of 1 January 2010, 4.03% of issued loans were those with the volume of less than 1 million soums, 15.76% - loans between 1 million soums to 3 million soums and 18% - between 3 million soums to 5 million soums, and 60.22% - loans over 5 million soums.

Liabilities’ analysis showed that main part of obligations of credit unions, members and partners of CUA, was liabilities, which accounted 73.8% of obligation, which grew by 51.8% year-on-year in 2009 to 69.78 billion soums.

At the same time, large part of liabilities fell to share of attracted deposits, which made up 93.1% of total liabilities.

Aggregate obligation of CUA members rose by 51.8% year-on-year in 2009. In the reporting period, deposits of shareholders on deposits grew by 15.3% year-on-year in 2009 to 64.9 billion soums.

In 2009, total volume of external loan resources decreased from 1.074 billion soums to 894.04 million soums. Share of deposits made up 68.7% (72.7% in 2008) in total volume of assets. This means that deposits of credit unions’ members remained main source of resources to the credit unions.

The report said about 92.4% of total deposits were resources of individuals, including 50.6% were deposits of female and 41.7% - women. Legal entities, mainly private enterprises, accounted 7.56% of total deposits. Other items in obligations structure have small share, so loans to banks made up 0.9%, short-term obligations to payment (up to 30 days) comprised 4.2%.

As of 1 January 2010, the ratio of deposits to loans made up 76.15%, which means that large part of loan operations of credit unions financed due to attracted funds.

Analysis of deposits gave following results: deposits up to 90 days made up 7.75% in total deposit portfolio, deposits from 91 days to 180 days – 15.72%, deposits from 181 to 365 days – 54.58% and deposits over a year – 21.94% in 2009. This shows that deposit terms were almost the same as loan terms.

Deposits with the size of less than 1 million soums comprised – 4.93% in total deposits’ volume, deposits from 1 million soums to 3 million soums – 13.03%, deposits from 3 million soums to 5 million soums – 11.94% and over 5 million soums – 70.1% in 2009.

Aggregate capital of credit unions increased over twice year-on-year to 24.7 billion soums as of 1 January 2010.

As of 1 January 2010, ratio of aggregate capital adequacy made up 26.1%, while the minimal requirement set at 15% by the legislation of Uzbekistan.

Capital of CUA members grew by 12.6 billion soums in 2009, while the growth of institutional capital comprised 9.06 billion soums, charter capital – 3.46 billion soums and temporary capital – 0.61 billion soums.

Only heavy source of income for credit unions remain interest yields from credit investments. About 93.57% of total incomes made up interest yields and 6.83% - non-interest yields. This is explained with peculiarity of credit unions’ activity and high demand to loan products by population and businesses.

At the end of 2009, aggregate income of CUA credit unions increased by 92.9% year-on-year to 42.9 billion soums. It can be said that interest yields are main source of income for credit unions.

In the reported period, CUA credit unions received income from non-interest yields for 2.76 billion soums.

Main expenses of credit unions were directed to cover interest on deposits and payments to staff and commission expenses. At the end of 2009, total expenses of CUA credit unions (including taxes and reserves on possible losses) rose by 95.2% year-on-year to 34.1 billion soums.

At the same time, share of interest expenses on deposits made up 59.6% of total spending and rose twice year-on-year. In the structure of interest expenses, share of other financial spending made up 0.34% in total interest expenses and rose by 36.1% year-on-year.

In the reviewed period, non-interest expenses of credit unions comprised 40.2% from total spending, including salaries and other expenses like renting, transport and administrative expenses, etc. Expenses to salaries made up 24.2%, marketing resources – 1.76%, administrative expenses – 15.53%. Operational expenses of credit unions rose by 77.49% year-on-year, the report said.