S&P Upgrades Kapitalbank to B+ Amid Digital Growth and Market Leadership

Kapitalbank, Uzbekistan’s largest private lender, has announced an upgrade in its long-term credit rating by S&P Global Ratings to B+ with a stable outlook. The bank’s short-term credit rating remains at B. S&P Global Ratings highlighted Kapitalbank’s strong brand recognition, high-quality digital services, and ongoing investments in IT infrastructure as key factors driving its sustained growth and increased market share in Uzbekistan’s financial sector.

Key Highlights:

• Market Leadership: As of June 2024, Kapitalbank holds a 12% share of the retail lending market and nearly 20% of the retail deposit market in Uzbekistan.
• Technological Advancements: The bank continues to invest in technology development, maintaining its leading position in innovation within Uzbekistan’s financial market.
• Growth Opportunities: Kapitalbank’s integration with the Uzum ecosystem is expected to provide additional growth opportunities in both the retail and small and medium-sized business (SME) segments.
• Operational Efficiency: The bank’s cost-to-income ratio is projected to remain at 40%–45%, with a return on equity around 40%.

Statements from Leadership: Kirill Mayevsky, Chairman of the Management Board at Kapitalbank, remarked, “The bank’s improvement in international ratings indicates that we are following the right strategy by investing heavily in the development of digital banking services for both retail and business customers. Our investments in digital development are attracting new customers from across the country and demonstrating significant operational efficiency gains.”

Financial Projections: According to S&P Global Ratings, Kapitalbank is expected to expand its loan portfolio by 30%–40% annually, with revenue growth projected at 35%–38% per year. The bank’s strategic focus on SMEs will be a significant driver of this growth.

Customer Base and Branch Network: Kapitalbank serves over 2 million Uzbek citizens and more than 67,000 companies and entrepreneurs. The bank operates over 100 branches and offices nationwide, solidifying its presence in every region of Uzbekistan.

Kapitalbank’s strategic investments in digital services and IT infrastructure have positioned it as a leader in Uzbekistan’s financial market. The bank’s upgraded credit rating and continued growth in market share underscore its commitment to innovation and operational excellence.