Moody's Ratings affirms Hamkobank's B1 deposit ratings; outlook changed to positive from stable

Moody’s Ratings has affirmed Hamkorbank’s long-term deposit rating at B1, with the outlook revised to positive from stable, reflecting the bank’s strong financial performance and operational resilience. The rating agency cited Hamkorbank’s high asset quality, robust profitability, and stable capital position as key factors supporting the affirmation. As of January 2025, the bank’s non-performing loans (NPLs) accounted for just 1.5% of total assets, while its net profit in 2024 reached 1.4 trillion soums, a 200 billion soum increase from 2023, translating to a 5% return on average assets (ROA).

Moody’s also highlighted Hamkorbank’s diversified loan portfolio and strong liquidity position, with 20% of total assets held in liquid assets as of year-end 2024. The bank’s capital adequacy ratio is projected to remain within the 14–15% range over the next 12–18 months, supported by a return on equity (ROE) averaging 30% from 2021 to 2024. Additionally, the bank benefits from a stable funding structure, with 44% of liabilities derived from long-term borrowings with international financial institutions.

The positive outlook underscores Moody’s expectation that Hamkorbank will maintain its strong credit profile, driven by favorable economic conditions in Uzbekistan and the bank’s strategic focus on retail lending and cross-border financial services. However, any significant deterioration in asset quality, profitability, or capital metrics could lead to a downward revision of the ratings.