The bank’s rating reflects growth of Turkiston Bank’s capitalization, support of shareholders, as well as gradual improvement of financial results. At the same time, the rating takes into account risks related with high growth of assets and retained significant position in crediting.

Assets of Turkiston Bank grew from 20.12 billion soums as of 1 October 2009 to 26.32 billion soums as of 1 October 2010. The loan portfolio increased by 21.36% year-on-year to 18.63 billion soums (15.35 billion soums as of 1 October 2009). At the same time, the loan portfolio is considered as concentrated enough, especially at trade and catering enterprises, aggregate share of which made up 50.95% of total loan potfolio.

In context of potential support of shareholders, capitalization of Turkiston Bank is evaluated as adequate compared to business scale. The own capital of Turkiston Bank rose by 37.33% to 8.3 billion soums at the result of third quarter of 2010 (6.1 billion soums in the third quarter of 2009).

Own resources adequacy level of the bank made up 31.78% in the reporting period. Adequacy of capital and I level capital of Turkiston Bank made up 28.5% (28.1% in third quarter of 2009) and 31.8% (28.1% in 3Q 2009) respectively.

Liquid position of balance is considered as balanced in the reporting period. Share of liquid assets made up 14.43% of the bank’s assets. Coefficient of current liquidity made up 40.23% (66.69% in 3Q 2009). Ratio of loan portfolio to term resource base comprised 315.04% in the third quarter of 2010 (208.43% in 3Q 2009).

Main part of barrowed resources of Turkiston Bank is receiving from its clients (93.36% from total liability of the bank). At the same time, deposits of clients are mainly short-term in the reporting period. Over 45% of deposits were those with term up to a year. Ahbor-Reyting noted that creation of long-term and diversification of borrowed resources in future can became positive rating factor.

In context of the growth of crediting scale, Ahbor-Reyting expects further stabilization of quality and quantitative figures of Turkiston Bank’s activities. Relatively high growth of crediting volume helped to the growth of net interest income of the bank, which grew by 45.38% year-on-year to 1.482 billion soums.

Simultaneously, net interest margin of Turkiston Bank decreased from 8.9% to 7.92%, while interest spread fell from 7.73% to 7.01%. At the same time, coefficient of income from loan portfolio of the bank demonstrated growth from 8.66% in the third quarter of 2009 to 11.62% in the third quarter of 2010. Expenses of the bank rose by 59.64% due to growth of interest spending and operation expenses by 36.94%.