The rating of Universalbank takes into account adequate capitalization, balanced liquidity and improved financial results. The rating takes into account the fast growth of assets and related risks, relatively high credit risks, relatively limited business scale and clientele of the bank, acceptable level of assets and relatively low financial results of the activity.

Stable forecast reflects expectation of Ahbor-Reying that Universalbank will keep good positions in the market, support adequate capitalization and good quality of assets. Improvement of financial activity, diversification of business and strengthening market position of the bank can serve for improvement of the bank’s rating.

In the fourth quarter, the assets of the bank increased by 28.04% year-on-year to 33.8 billion soums. The loan portfolio grew by 24.24% year-on-year to 29.66% in total assets of the bank or 10.038 billion soums. At the same time, main share of loans were issued to such sectors as transport and communication, construction and industry. In the fourth quarter of 2010, income-bearing assets of the bank rose by 36.61%, mainly due to 10 time growth of investment portfolio. Investment portfolio of Universalbank reached 1.085 billion soums and made up 3.21% of the bank’s assets. Out of them 22.07% of investments were invested to shares of the state enterprises and other to private enterprises.

Quality of assets of Universalbank rated as in acceptable level. The volume of written-off loans rose four times and net written-off made up 1.45% (0.43% in 4Q 2009), which is connected with introduction of credit risks management and position of shareholders to carry out transparent business. In the result of this, the bank had no bad loans at the end of the reporting period. The issued loans were mainly secured with real estate (42.78%), guarantees of third party (27.64%) and vehicles (20.14%). At the same time, unsecured loans made up 2.66% of loan portfolio of the bank.

In the fourth quarter of 2010, 91.61% of loans were rated as good. It is worth to mention that, Universalbank decreased reserves on possible loss on loans and leasing by 45.05% and made u 1.45% of loan portfolio.

Liquid position of Universalbank rated as high. In the reporting period, liquid assets of the bank grew by 32.63% to 41.63% of the bank’s assets (40.20 in 4Q 2009). At the same time, quick assets and current liabilities of the bank increased by 32.18 and 34.24% respectively.

At the same time, coefficient on current liquidity of Universalbank grew from 74.53% in 4Q 2009 to 81.45% in 4Q 2010. Simultaneously, the ratio of loan portfolio to deposits and attracted funds at money markets fell from 55.72% to 52.37% in the reporting period, which shows that the bank has enough resources to further increase income-bearing assets.

The main source of funding of Universalbank is clientele accounts, share of which in total liabilities in the fourth quarter made up 94.55%. At the same time, the funding base of the bank rated mainly as short-term. Over 98.16% of liabilities of the bank were less than a year in the fourth quarter of 2010.

In order to execute requirement to equity capital, the bank increased it by 93.68% to 11.3 billion soums. At the same time, own capital of the bank rose by 44.74% year-on-year in the fourth quarter to 13.6 billion soums.

It is worth to mention that Universalbank increased capital base, which helped to improve capital adequacy coefficient. In the result, the coefficient of capital adequacy and first level capital adequacy reached to 58.8% and 59.3% respectively (48.6% and 43.1% in 4Q 2009) respectively.

At the same time, the coefficient of leverage rose from 27.30% in the fourth quarter of 2009 to 36.80% in the same period of 2010. The level of capital base adequacy reached 40.10% in the fourth quarter of 2010 (35.48% in 4Q 2009).