Fitch confirms Ipoteka-bank ratings at BB-/B, with stable outlook.

On the 30th of June 2021 Fitch ratings the international rating agency confirmed Ipoteka-bank’s ratings. According to the press-release, Ipoteka-bank’s long-term issuer default ratings have been confirmed at the level of “BB-/B”, prognosis is “Stable”.

The affirmation of the ratings considers the bank’s stable financial condition, moderate profitability, notable franchise in SME and mortgage lending and the government support.  

The agency’s analysts specify that notwithstanding the challenging operating environment in Uzbekistan, the bank showed high lending growth in the last year. The share of retail portfolio increased to 40 percent. Loan portfolio dollarization (31% at end-2020) maintained lower than that of most other state-owned banks in the sector.

According to the Fitch rating agency, Ipoteka-bank has reached moderate profitability in the recent years. Particularly, the Bank’s moderate net interest margin (6% in 2020) and solid fee and commission income (with 21% share in operating income) resulted a satisfactory return on average equity of 10.6%.

In addition, «The cushion of liquid assets was moderate at Ipoteka, with end-2020 at UZS5.1 trillion (about USD500 million) or 1.3x its wholesale debt maturing in 2021. <…> Ipoteka's liquidity cushion further improved in 2Q21 after an UZS785 billion Eurobond issue.» -noted in the Fitch’s press-release.

Ipoteka-bank remains focused on increasing its product and delivering high quality services to customers in all business segments. The main objective of the bank is to improve customer satisfaction and encourage long-lasting relationships to increase profitability.

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