OREANDA-NEWS. January 14, 2008. Akhbor-Rating Interbank Rating Company has affirmed Capital Bank Joint-Stock Commercial Bank's solvency rating at "uzA" (national scale), the Banking Association of Uzbekistan reported.

The "uzA" rating reflects high level of the bank's solvency, reflecting low level of the bank's credit risk. The bank's capability to meet its financial obligations fully and on time is estimated as high. However, the bank's solvency, its capability to meet its financial obligations is more sensitive to the changes in the commercial, financial and economic conditions compared to the banks rated higher.

Capital Bank Joint-Stock Commercial Bank is one of the fastest-growing banks in Uzbekistan, and is among the top ten largest banks of the country according to the size of its assets, investments and deposits taken from the population. The bank's rating takes into account its traditionally positive client base in the city of Tashkent, continued regional expansion, the adequate level of liquidity and acceptable profitability of its operations. The rating also takes into account high concentration of its balance in the region of the country's capital, fast growth of its assets and associated risks, as well as comparatively low level of capitalization contrasted against the bank's active expansion of its operations.

The Capital Bank's main competitive advantage providing its stable market position is expansion of its activity in the retail segment. The bank actively works with private clients, expanding the scale of retail services, such as international remittance services, the use of plastic cards, car loans and consumer loans. In the late 2006 the loans to private clients made up 25% of the bank's total credit portfolio. The bank's lending activity is expanding at high pace. The average annual growth of the net credit portfolio made up 209% in 2004-2006. As of 1 October 2007 the size of the bank's credit portfolio exceeded 60 billion soums.

In 2004-2006, the bank's assets grew very fast. The average annual growth of the bank's assets in this period made up 192%. In 2006 the total assets of the bank made up 121 billion soums. In the first nine months of 2007 they grew by 63% to 197 billion soums. The bank's market share in terms of the total assets makes up 1.7% (in 2006) compared to 0.3% in 2004.

The bank is one of the active participants of the stock market and is among the top five largest banks in terms of the size of the investment portfolio. In 2006 the bank's net investment portfolio made up 3.4 billion soums. In 2007 the bank floated subordinated bonds for the total amount of 2.5 billion soums.

The bank gives attention to the adequate growth of its capital. In the first nine months of year 2007 the bank's equity capital reached 12.4 billion soums. The bank has recently announced completion of the placement of the seventh stock float for the total amount of 3 billion soums. Today the bank's charter capital makes up 8 billion soums. It is expected that the capital will continue to grow underpinned by active expansion of the bank's operations.

In 2004-2006, the bank's total revenue continued to grow. The diversification of the sources of income is gradually improved through the expansion of the range of services provided and activation of the operations in the interbank market and stock market. The bank's profitability indicators are maintained at the adequate level, in spite of the growing market competition and falling interest rates. The bank's liquidity is also kept high. In 2004-2006, the average liquidity indicator of the liquid assets to total assets of the bank was kept at the level exceeding 40%. The current liquidity ratio made up 53% in 2006, and 57% as of 1 October 2007.