Fitch Ratings has confirmed the long-term ratings of Uzbekistan's Orient Finans Bank (OFB) in both foreign and local currencies at B+, while assigning a Stable outlook. Additionally, the bank's viability rating was confirmed at b+, whereas the state support rating remains at 'No Support' (ns).
OFB's ratings are based on its individual credit profile. Fitch highlighted the bank's strong profitability and capital adequacy, which offset limited market positions, rapid lending growth in previous years, the quality of the credit portfolio that has not yet been fully tested by time, as well as high concentration of assets and liabilities.
The agency adjusted its assessment of the operating environment for Uzbek banks, upgrading it from b/Positive to b+/Stable. This change was driven by progress in banking sector reforms over the past two years, including strengthened banking regulation and reduced accumulated risks.
By the end of the first half of 2026, OFB accounted for approximately 2% of the total assets, loans, and deposits in the Uzbek banking sector. The share of corporate loans in the portfolio decreased to 59% by the end of 2025 from 65% the previous year, due to the expansion of small and medium-sized business lending and the retail segment.
Nevertheless, the bank's credit portfolio maintains a high degree of concentration. By the end of the first half of 2026, the top 25 borrower groups accounted for 40% of the gross loan portfolio, equivalent to 1.1 times the bank's capital.
The decline in dollar dependence of loans continued: the share of foreign currency loans fell to 26% by the end of the first half of 2026 from 50% at the end of 2024. Fitch attributes this decrease to increased retail lending and the repayment of a large foreign currency loan.
The agency also noted an increase in non-performing loans. The share of Stage Three loans rose to 1.2% of the portfolio by the end of 2025 compared to 0.2% the previous year, and the share of Stage Two loans increased to 19.2% from 2.6%. Fitch expects a further rise in the proportion of non-performing loans in 2026–2027, but forecasts that it will remain below 5%.
OFB's profitability remains high: the return on risk-weighted assets stood at 7.6% in 2025 compared to 7.7% in 2024. Net interest income reached 11.3% in 2025, and the cost-to-income ratio was 26%.
Fitch forecasts some decline in profitability in 2026–2027 due to higher risk costs, but believes it will remain strong. The bank's Fitch Core Capital (FCC) ratio increased to 23.5% by the end of 2025 from 20% the previous year. The regulatory Tier 1 capital adequacy ratio was 21.4% by the end of the first half of 2026, exceeding the statutory minimum of 8.5%.
Fitch predicts that the FCC ratio could rise to approximately 26% by the end of 2026, thanks to strong profitability and slowing loan growth. OFB's rating could be downgraded if asset quality deteriorates significantly, leading to a sustained weakening of financial performance and reduced capitalization. Specifically, negative rating actions may follow if the FCC falls below 12%.
A rating upgrade would require further improvement in Uzbekistan's operating environment, strengthening the bank's risk profile, and maintaining stable asset quality, strong profitability, and capitalization.