Uzbek Banks See Credit Portfolio Growth Amid Rising Non-Performing Loans in Q1 2026
Uzbekistan’s banking sector credit volume increased significantly in Q1 2026, with a rise in non-performing loans driven mainly by state-owned banks.
In the first quarter of 2026, Uzbekistan’s banking sector experienced notable growth in its total credit portfolio, accompanied by an increase in non-performing loans (NPLs). According to data released by the Central Bank, the overall credit portfolio expanded by 19.3 trillion UZS, reaching over 623.3 trillion UZS.
Credit Portfolio Growth and Sector Dynamics
While the credit volume surged, the volume of problematic loans also increased by 1.8 trillion UZS to nearly 19.9 trillion UZS during the same period. This growth in NPLs was primarily concentrated in state-owned banks.
Specifically, state banks’ credit portfolios expanded by 11.1 trillion UZS. The most significant increases were recorded at Agrobank (+5.44 trillion UZS), Milliybank (+2.63 trillion UZS), Xalq Bank (+1.95 trillion UZS), and Aloqabank (+1.89 trillion UZS).
Conversely, some banks saw a contraction in their credit portfolios. Notably, SQB and Asakabank experienced declines in their lending volumes.
Among private banks, Hamkorbank, Hayot Bank, and Kapitalbank displayed active lending growth. However, TBC Bank and Orient Finans Bank reduced their credit disbursements.
“Despite the rise in non-performing loans, the overall share of problematic credit declined from 3.19% to 2.99% due to the rapid expansion of the total credit portfolio,” noted the Central Bank’s report.
Non-Performing Loans Breakdown
Increases in NPLs were largely observed in state banks, which accounted for a 1.46 trillion UZS rise. The largest contributors to this increase were SQB, Aloqabank, and Asakabank.
On the other hand, some banks managed to reduce their problematic loans. For example, Ipoteka Bank successfully wrote off 316 billion UZS of bad loans. Yet, Anor Bank and Garant Bank recorded an uptick in their NPLs.
Overall, the growth in the total credit portfolio has somewhat mitigated concerns about rising non-performing loans by decreasing their relative share, signaling cautious optimism in the banking sector’s credit quality.
