The international rating agency Fitch Ratings has lowered the long-term ratings of Anor Bank's issuer in both foreign and local currencies to CCC+ from the previous B-. Furthermore, the bank's Viability Rating (VR) was downgraded to ccc+ from b-.
These downgrades reflect a significant deterioration in Anor Bank's baseline capitalization according to IFRS standards and the high risk profile inherent to the bank. Over the past four years, Anor has demonstrated rapid business growth while operating with limited capital buffers amid the unstable operational environment of Uzbekistan.
The bank's Fitch Core Capital (FCC) ratio fell to 0.9% by the end of 2025, compared to 4.3% the previous year. Fitch noted that this is one of the lowest figures among banks assessed by the agency worldwide. The decline was caused by aggressive lending growth that was not sufficiently supported by shareholder contributions.
Nevertheless, Anor's regulatory Tier 1 capital ratio stood at 10.4% as of the end of 2025, slightly exceeding the minimum threshold of 10%. Over the last four years, the bank maintained only a small margin above this regulatory requirement.
On September 9, the Anor Supervisory Board approved a set of measures aimed at restoring capitalization by the end of 2026. These measures include a capital injection of 100 billion soms by the shareholder and the realization of intangible assets. Following the implementation of these steps, Fitch expects the FCC ratio to rise to approximately 5% by the end of 2026.
The agency also highlighted the high risk profile and aggressive expansion of Anor Bank's credit portfolio. The total volume of the bank's credit portfolio increased by 50% in 2025 and more than tenfold over four years, although the growth started from a low base.
In 2025, asset quality deteriorated. The proportion of non-performing loans rose from 3% at the end of 2024 to 5% at the end of 2025, and the share of Stage 2 loans increased from 4% to 9%. Fitch forecasts a further deterioration in asset quality indicators, although risks may be partially contained by strengthened risk control, low loan concentration, dollarization, and expanded secured lending.
The bank's operating profit in 2025 decreased to 0.3% of risk-weighted assets, compared to 2.4% the previous year. Performance was affected by declining margins, expansion of lending with lower profitability, and increased deposit attraction costs. The cost of risk increased from 3.6% in 2024 to 4.5%.
The main source of funding for Anor is deposits from the non-state sector, primarily from private individuals. By the end of 2025, such deposits accounted for 61% of the bank's liabilities, while state deposits represented 13%. By mid-2026, liquid assets constituted 15% of total assets, which Fitch considers an adequate level.
Anor Bank is a private digital bank established in 2020. By mid-2026, it held 2% of the loans and 3% of the deposits in the Uzbek banking sector. More than 75% of its credit portfolio at the end of 2025 was allocated to small loans to individuals and self-employed persons. The bank is also increasing lending to small and medium-sized enterprises.
Fitch maintained its assessment of the operating environment for Uzbek banks at b+/Stable, noting progress in banking reforms, including stricter regulation and efforts to eliminate accumulated risks. The economy of Uzbekistan grew by 8.5% year-on-year in the first half of 2026.
Further downgrades of Anor Bank may occur if the FCC ratio fails to reach 5% due to delays or incomplete execution of the approved capital restoration plan. Ratings could also be lowered in case of significant liquidity deterioration and increased default risk on senior obligations. To improve the rating, sustained FCC growth above 6% will be required, possibly accompanied by a slowdown in business growth in line with the bank's internal capital generation or additional shareholder contributions.
