Moody’s Ratings has assigned long-term ratings for deposits and issuers of JSC Apex Bank in both local and foreign currencies at the B3 level, with the outlook assessed as stable. According to the rating agency's actions, the bank's Basic Credit Assessment (BCA) and adjusted BCA are set at b3.
The long-term credit risk assessment for Apex Bank's counterparty was determined as B2(cr), and the long-term ratings for the counterparty's credit risk in local and foreign currencies received a B2 rating. Meanwhile, short-term ratings for deposits and issuers, as well as short-term ratings for the counterparty's credit risk, were assigned as Not Prime (NP), and the short-term counterparty credit risk assessment was set at NP(cr).
According to Moody’s, the B3 ratings for Apex Bank's deposits and issuers are based on its b3 BCA score and low probability of state support. The agency links this to the small size of the bank and its private ownership in Uzbekistan's banking sector, where the sovereign rating is Ba2 with a stable outlook.
The b3 BCA score reflects Apex Bank's position within a broader group of affiliated companies that provide synergy, as well as continuous support from shareholders and related organizations. JSC Apex Insurance, one of Uzbekistan's largest insurance companies, is particularly noted.
The agency expects Apex Bank to be able to leverage established customer relationships and the opportunities provided by affiliated companies as it expands its client base. Nevertheless, the bank's credit profile is constrained by its relatively short operating experience as an independent institution, high concentration of borrowers, and rapid growth of the loan portfolio, which puts pressure on capitalization.
By the end of 2025, non-performing loans accounted for 0.9% of the total loan portfolio. Moody’s noted that this figure remains low, but emphasized that the bank's short operational history and predominantly young loan portfolio mean that this figure does not yet fully reflect the level of credit risks. The agency forecasts a gradual increase in the proportion of non-performing loans as the portfolio matures. Another risk factor remains the high concentration of loans among individual borrowers and affiliated parties.
Apex Bank's capital adequacy ratio (TCE/RWA) stood at about 6.2% as of the end of 2025. This ratio was negatively affected by a large volume of intangible assets. At the same time, capital adequacy ratios exceeded regulatory requirements.
Moody’s forecasts a moderate improvement in Apex Bank's capitalization over the next 12–18 months, supported by full profit retention and continued shareholder support. However, this effect is partially offset by further balance sheet growth.
The bank's return on assets in 2025 was 0.7%. In the agency's view, profitability is limited by the developing business model and significant dependence on income from affiliated party transactions. It is expected that this dependence will decrease as the bank expands its operations and diversifies its client base.
Concurrently, increased operating expenses related to investments in infrastructure and production capacity will impact financial results in the near term. Moody’s also anticipates a gradual increase in the cost of credit risk as the loan portfolio matures.
As of the end of 2025, the liquidity of Apex Bank's core banking business was 24.4% of total banking assets. It consisted mainly of cash, balances with financial institutions, and government securities. Moody’s expects the liquidity buffer to decrease as the loan portfolio continues to grow.
The bank is primarily financed by deposits, although its deposit base remains highly concentrated among large corporate depositors and affiliated parties.
The BCA also includes a negative qualitative adjustment of one notch for strategy, risk appetite, and corporate governance. Moody’s attributes this adjustment to the bank's rapid balance sheet growth from a small initial base, limited independent operating experience, and constant reliance on affiliated parties for lending, financing, and revenue generation.
According to the agency, Apex Bank management intends to gradually diversify its client base and business model. However, the sustainability of the bank's operations outside the group ecosystem has not yet been demonstrated, and associated risks have not been fully reflected in its financial performance.
These factors are also taken into account when assessing Environmental, Social, and Governance (ESG) factors. Apex Bank's corporate governance profile received a G-4 rating, and its impact indicator on credit risk based on ESG factors is set at CIS-4. According to Moody’s, CIS-4 indicates a significant influence of ESG factors on the bank's rating, mainly due to high corporate governance risks.
Moody’s does not expect that state support will lead to an upgrade of Apex Bank's deposit and issuer ratings. This reflects the bank's predominantly private ownership and its small market share, which, in the agency's opinion, indicates the bank's insignificant importance to the stability of the banking sector as a whole.
The stable outlook suggests that Apex Bank's credit profile will remain generally unchanged over the next 12–18 months. Support from shareholders and affiliated companies, along with continued business development, should provide backing. At the same time, risks associated with rapid growth, high borrower concentration, and significant affiliated party transactions persist.
A downgrade or a change in the outlook to negative could occur if rapid business expansion leads to a significant deterioration in asset quality and capitalization. A similar scenario could arise if the bank fails to successfully expand its client base and reduce dependence on affiliated party transactions.
According to Moody’s, a rating upgrade would be possible if Apex Bank develops longer operational experience while maintaining high asset quality, significantly reduces concentration among individual borrowers and affiliated parties, strengthens capitalization, and creates a sustainable and more diversified revenue structure.