The assigned rating reflects positive reputation and image of Kapitalbank, strong position in corporate market, high quality of assets and good level of risk management, balanced liquid position and adequate capitalization.

The rating also takes into account level of diversification of clientele base and loan portfolio, as well as positive financial results in the first quarter of 2012. Good level of corporate management and firm strategy, directed at further diversification of business and regional expansion, gives additional stability of Kapitalbank’s business.

In the reporting period, business scale of Kapitalbank expanded with stable tempo. In the first quarter of 2012, the assets of the bank rose by 44.86% year-on-year to 530.5 billion soums (366.2 billion soums in 1Q 2011). Total income-bearing assets rose by 50.93% year-on-year to 58.64% of total assets of the bank.

It is worth to mention that main part of income bearing assets fell to share of loan portfolio, which rose by 52.51% to 203.02 billion soums (133.1 billion soums in 1Q 2011) or 65.26% of all income-bearing assets of Kapitalbank. Based on this, its share in total assets rose from 36.35% in the first quarter of 2011 to 38.27% in the same period of 2012. In the first quarter of 2012, Kapitalbank increased other income-bearing assets such as investments to securities and deposits in other banks, which rose by 48.02% year-on-year.

Liquid position of Kapitalbank rated as acceptable level. In the first quarter of 2012, the liquid assets grew by 24.63% to 23.18% in total assets (26.94% in 1Q 2011). At the same time, current assets rose by 30.08% year-on-year and current liabilities grew by 47.98% in the first quarter of 2012. At the same time, the coefficient of current liquidity of Kapitalbank fell from 51.36% in the first quarter of 2011 to 45.15% in the first three months of 2012. In the reporting period, the ratio of loan portfolio to deposits and attracted resources at money markets grew from 53.93% in the first quarter of 2011 to 55.91% in the first quarter of 2012.

Main source of funding of Kapitalbank is clientele accounts, which accounted 97.49% of the bank’s total liabilities (89.43% in 1Q 2011). The deposits of the clients rose by 60.86% in the first quarter of 2012 and the resources in other banks and financial institutions fell by 18.062 billion soums to 8.019 billion soums in the first quarter of 2012. Funding base of the bank is rated as short-term.

Capitalization of the bank is rated at acceptable level. Own capital of the bank rose by 6.45% to 42.67 billion soums. The charter capital increased by 30% to 33.15 billion soums. Undistributed income fell by 5.98%.

The coefficient of general capital and the first level capital of Kapitalbank decreased to 10.2% and 11.5% respectively (13% and 14.9% in 1Q 2011). Ahbor-Reyting noted that fast growth of risky assets compared to growth of capital base impacted to decrease of coefficient of capital adequacy.