The rating uzB reflects middle level of solvency of the bank. The bank with uzB rating can timely and fully implement its financial liabilities, but margin of safety is limited and ability to continue timely payments will depend from sustainable and favourable business environment and economic situation.

Samarkand Bank rating reflects growth of the capitalization, support of shareholders, and gradual improvement of financial results. At the same time, the rating takes into account risks related with fast growth of assets, significant position in crediting and low, but strengthening, liquid position of the bank.

The stable outlook reflects expectations of Ahbor‐Reyting on continuation of business diversification, further strengthening liquid position of the bank and supporting good quality of the assets.

In the reporting period, Samarkand Bank’s business scale grew with stable tempo. In the fourth quarter of 2010, the assets of the bank rose by 56.97% year-on-year to 36 billion soums.

Simultaneously, the volume of net loan portfolio of the bank rose four times and made up 8.5 billion soums and its share in total assets made up 23.59% (8.59% in 4Q 2009). Other income-bearing assets, such as interbank assets, trade and investment securities, rose 2.5 times and made up 10.8 billion soums. At the same time, share of other income-bearing assets in total assets of Samarkand Bank increased from 18.99% in the fourth quarter of 2009 to 29.46% in the same period of 2010.

Simultaneously, income-bearing assets of the bank grew three times year-on-year in the fourth quarter and made up 19.3 billion soums or 44.25% of the bank’s assets. Taking into account this, Ahbor‐Reyting expects that income-bearing assets will grow further in near future.

In the fourth quarter of 2010, the quality of assets is considered as acceptable. At the same time, there were no unsecured and problem loans in the structure of loan portfolio of Samarkand Bank. In line with the bank reports, some 84.23% of loans considered as good and 15% as standard. At the same time, the level of created reserves for possible loan losses decreased from 20.07% in the fourth quarter of 2009 to 1.69% in the same period of 2010.

In the reporting, the capital base of Samarkand Bank grew moderately. Own capital of Samarkand Bank grew by 44.02% and made up 22.8 billion soums. Equity capital of the bank rose by 44.83% to 21.9 billion soums. At the same time, capital adequacy and the first level capital adequacy made up 43.70% and 80.8% (62.2% and 83.6% in 4Q 2009) respectively, while leverage coefficient comprised 62.6% in the last quarter of 2010 (68.1% in 2009).

Ahbor‐Reyting believes that despite potential growth of business scale, market share of Samarkand Bank will remain low in short-term as significant growth of capitalization and investment activity of large banks in the context of state support will put pressure to market positions of small and medium banks.