International agency Fitch Ratings has assigned ANOR BANK JSC a rating of "B-" with a "Stable" outlook

ANORBANK received from the international agency Fitch Ratings rating with a stable outlook

International rating agency Fitch Ratings has assigned ANOR BANK JSC a long-term issuer default rating (IDR) of "B-" with a stable outlook and a VR of "b-"". 

Fitch Ratings is one of the three largest and most reputable rating agencies in the world and has been assessing governments, corporations, banks, insurance companies and other financial organizations for more than a century. One of the key indicators by which the agency evaluates companies are long-term issuer default ratings (IDR) and VR (VR).

What credit ratings tell us

The level of credit rating is one of the most important factors that helps to understand whether any cooperation with a particular issuer makes sense. The rating reflects an independent opinion on the creditworthiness of issuers and the credit characteristics of debt instruments, which is formed on the basis of a common terminology base and can help investors make the most informed decisions.

ANORBANK, the First Digital

ANORBANK was founded in 2020 by private shareholders with a background in banking. The business model of a digital bank, which provides a full range of services for individuals and legal entities, was taken as a basis. To receive services, there is no need to visit the bank's branches, just visit the website, mobile app or simply call the 24-hour contact center. Today the main direction of ANORBANK's work is to provide unsecured consumer loans online, however, the bank has begun to actively develop corporate lending and lending to small and medium-sized businesses.

The bank focuses on small and high margin unsecured retail lending, which is inherently risky, but also results in significantly lower loan concentration and dollarization (less than 4% of gross loans at the end of Q3 2023 according to local accounting standards) compared to other Fitch-rated banks in Uzbekistan.

In its first three years of operations, the bank incurred high operating costs associated with setting up commercial operations from scratch and building a credit and deposit franchise. Fitch Ratings forecasts that in 2023 the increase in business volumes will lead the bank to become profitable, and in 2024 operating profit will rise to around 4% of risk-weighted assets, according to the rating agency's base case scenario.

Since its inception, Anor Bank has been expanding its loan portfolio at a rapid pace, and Fitch Ratings expects this rapid growth, which exceeds that of the sector as a whole, to continue into 2024.

 "This rating once again confirms the stable growth and development of our bank, which is keeping pace with the times. ANORBANK is a financial market player that integrates the digital component into its operations as much as possible, including a common risk assessment system, enhancing customer loyalty, strengthening its brand image and hiring the best human resource professionals.

This rating showed a positive assessment of our work and achievements in the banking and finance sector as a competitive player, which is confidently looking to the future and setting trends in the domestic market.

Most importantly, it is an opportunity for our bank to enter international capital markets, attract foreign investors, develop foreign economic activity", - emphasized Madina Nurutdinova, member of the Supervisory Board of ANOR BANK JSC

Rating outlooks

Fitch Ratings regularly reviews ratings and raises or lowers them depending on what has changed in the company's operations and the country where it is based. Anor Bank's Long-term IDRs and VRs could be upgraded, but this would require a significant strengthening of the bank's business profile and, as a result, a sustained improvement in profitability and capital ratios. The rating could also be affected by Fitch's improved assessment of Uzbekistan's overall operating environment.

The assignment of a 'B-' rating and a 'Stable' outlook to ANORBANK indicates the bank's financial strength and reliability. The chosen direction of development in the field of digital banking allows not only to process any request as quickly as possible, while maintaining an individual approach to each client and guaranteeing the security of data storage, but also allows residents and visitors of Uzbekistan to be always one step ahead: both in life and in business.

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