Gil Karni

Important investment at the right juncture

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The net profit of the banking sector at the end of the first quarter totalled 2.4 trillion UZS, which is 22.3% less than in the same quarter of 2023. National Bank of Uzbekistan's share in this indicator was 19.5% (14% at the end of 2023). Interest income grew by 37.4% to 25.9 trillion UZS, while non-interest income grew by 10.6% to 13.0 trillion UZS. The loan portfolio grew by 17.1% year-on-year to 478.2 trillion UZS, while the deposit portfolio grew by 18.0% to 243.1 trillion UZS. Compared with their performance in 2023, AKБ "АГРОБАНК", JSC "AloqaBank" and IPOTEKA-BANK dropped out of the top 10 in the first quarter. Their places were taken by KDB Bank Uzbekistan, Davr Bank and Asia Alliance Bank. One of the largest private banks, JSCB "Kapitalbank" at the end of the quarter retained second place after National Bank of Uzbekistan, with a difference in profit of 87 billion UZS (difference at the end of 2023 – 86 billion UZS).

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Uzbekistan’s only mobile-exclusive bank, TBC Bank Group PLC, secures a fresh equity investment of $38.2M Read the full story here: 👇 https://lnkd.in/eJHqk-sX #fundraising #mobilebanking #uzbekistan #fintechboostup

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JSC ProCredit Bank receives a guarantee for EUR 70 million from the European Bank for Reconstruction and Development (EBRD to support lending to small and medium-sized enterprises (SMEs)   JSC ProCredit Bank has signed an agreement with the EBRD, supported by the European Union and the United States, to provide an unfunded portfolio risk-sharing facility covering up to 50% of credit risk on newly issued loans for SMEs in Ukraine by ProCredit Bank.   This facility will enhance the bank’s lending capacity, enabling the lender to provide much needed funding to Ukrainian private companies operating in critical industries such as agriculture, manufacturing, transport and pharmaceuticals. This funding will help companies to continue their operations as well as safeguard livelihoods, which is crucial for fostering economic resilience and for enabling Ukraine to rebuild in the aftermath of the war.   Up to 15% of the risk-shared loans will be used to support long-term investments in European Union-compliant and green technologies on the part of private SMEs, thus improving their competitiveness in domestic and foreign markets.

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As financial landscape become more complex, where AML and ESG compliance demands grow, banks need to adopt fast. Bank Association of Montenegro (UBCG) hosted our Solution Sales Advisor, Mladen Kalezić, who spoke about current state of compliance automatization and ESG adoption into banks workflows, where he also presented our solutions D&B Risk Analytics Compliance Intelligence and D&B Risk Essentials. #UBCG, #CBCG, #AML, #ESG, #Compliance

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Today, Azərbaycan Respublikasının Mərkəzi Bankı / Central Bank of the Republic of Azerbaijan conducted a presentation highlighting the intricacies of the #first cohort of special regulatory regime (sandbox) and the opportunities it’s poised to unlock. The session delved into the purpose behind this unique regulatory framework, eligibility criteria for application evaluation, and shed light on the testing procedures involved. Engaging discussions were a key highlight, with participants from diverse sectors exploring the promising avenues for implementing innovations within this framework. Important Dates: The Central Bank will be accepting applications for participation in the special regulatory regime from May 1, 2024, to May 31, 2024. For those interested, relevant documents for participation can be submitted through the https://sandbox.cbar.az website or via traditional written channels. Let’s embrace this opportunity for financial innovation!

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Bank of Cyprus’ CEO, Panicos Nicolaou: “We had a #strong start to the year with profit after tax of €133 mn and a ROTE of 23.6% in the first quarter of 2024. We are currently tracking #ahead of our 2024 targets and we will review these with our 1H2024 results. This quarter we announced a #significant increase in the total #shareholder distribution of €137 mn in respect of FY2023 earnings comprising a cash dividend of €112 mn and an inaugural share buyback of €25 mn. This corresponds to an overall payout ratio of 30%, more than #double the payout ratio from FY2022 earnings. We continue to execute our strategy, with a clear focus on supporting our #customers, delivering shareholder value and assisting the development of the Cypriot economy.” Full results here: https://lnkd.in/eV2wYTD9 #boc #financialresults #investors #Londonstockexchange #Cyprusstockexchange

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EBRD to provide $10mn loan to Uzbekistan’s Credit Asia chain The funds will be used to replenish the group’s working capital, allowing them to open new physical locations and develop a robust online sales platform. 👉Details — https://lnkd.in/dPtbHjG6 #EBRD #Loan #CreditAsia #Uzbekistan #WorkingCapital #RetailExpansion #OnlineSales #PhysicalStores #EconomicDevelopment #BusinessGrowth #FinancialSupport #RetailSector #Investment #EconomicBoost #CentralAsia #BusinessExpansion #DigitalTransformation #RetailInnovation #EconomicPartnership #Ecommerce

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Dear friends and colleagues, The Central Bank, commercial banks of Armenia, BPC, our partners in Payment Systems, all our hardware and software vendors, and the many other individuals and companies we have collaborated with, as well as my exceptional staff and colleagues at ArCa. As I write this final message as CEO of ArCa, I am filled with gratitude and fulfillment from the past 14 years. These years have been marked by meaningful cooperation and collaboration, for which I am truly thankful. During this period, we have made significant efforts to advance Armenia's payment system. We introduced numerous technologies to enhance the convenience and security of payments, supporting all contemporary methods in both physical and virtual areas: contactless payments, EMV 3D Secure, Apple Pay, Google Pay, and other tokenized payment methods, card-to-card transfers, QR payments, and more. Today in Armenia, individuals are no longer restricted to cash transactions; instead, they have the flexibility to utilize a range of payment options including payment cards, smartphones, smartwatches, and other devices. Currently Armenian Card is a National Switch and Clearing Centre for all payments performed by cards issued by Armenian banks in local merchants, which provides a great level of sovereignty for Armenian Payment System. As a National Payment System, Armenian Card has initiated and executed projects aimed at aligning local technological standards with those of international payment systems, thereby enhancing its attractiveness for users. These projects include the implementation of contactless chip technology, EMV 3D Security, tokenization options, digital cards, and more. We are ready to launch the new ArCaPay instant payment (transfers) system. We facilitated banks in expanding their roster of payment system partnerships. Armenian Card currently handles transactions from globally renowned payment systems including American Express, Diners Club, JCB, MasterCard, Visa, and UPI (China). Our collaboration with the MIR payment system was another successful example, although it has since ceased. Fresh perspectives play a crucial role in sustaining the ongoing evolution and development. We started the transformation process of a Company and have many ideas related with its further development. On this way I express my willingness to contribute to this process, offering my experience and insights just not in executive position, but as a Board member. From my standpoint, this transition represents the optimal solution for the company and personally for me in this stage. So, thank you once more, With deepest affection, Ishkhan Mkhitaryan

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"Uzbek Industrial and Construction Bank"​ JSCB 's net profit at the end of the first quarter of 2024 totalled 339.7 billion UZS, an increase of 99.2% compared to the same period of 2023. The bank's interest and non-interest income grew by 65.8% and 33.8% respectively, while operating expenses increased by 18.3% to 350.8 billion UZS. The loan book stood at 57.4 trillion UZS as at 1 March this year, up 11.0% from March 2023, while the share of non-performing loans (#NPLs) increased from 3.3% to 4.3% year-on-year.

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one of the most interesting and complete analysis on the Eurasian key markets on ESG status quo in business

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Our CIS specialist Igor Nartov has highlighted the strong demand for Uzbekistan’s new bond issues in Bloomberg: There’s "great demand for new credit exposure” in the former Soviet republics says Igor. "Interest from EU and US asset managers and growing Middle East investors is notable.” Yields have fallen as weak US data have fuelled appetite for riskier assets. Read the full story here on Bloomberg: https://lnkd.in/dqQu2AGR #EmergingMarkets #Bonds #Investment #Uzbekistan

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Uzbekistan's Economic Dynamo: CER Spotlights Top Regions! March showcased Uzbekistan's bustling economic scene, with tax revenues surging by 6.5% and customs receipts by 20.3%. Surkhandarya and Ferghana led the tax charge, while Jizzakh and Kashkadarya dominated customs growth. Exports saw a 5.8% uptick, led by Navoi and Kashkadarya, while loan issuance spiked by 0.2%, notably in Navoi and Tashkent. The commodity exchange buzzed with a 50.1% surge in transactions, driven by Jizzakh and Syrdarya. Meanwhile, Tashkent emerged as the entrepreneurial hub, with over 4,000 new enterprises. A vibrant business landscape is evident across Uzbekistan, promising growth and opportunity. Read more: https://lnkd.in/dGBhdjUB

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In 1H2024, Uzbekistan's GDP grew by 6.4%. The budget revenue increased by 14% to 113tn UZS, yet the expenditures reached 149.8trln UZS with the budget deficit of 36.8trln UZS. https://lnkd.in/dXTZMFds

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Despite active development of venture capital market in Kazakhstan, we believe there are still many startup ideas that are underdeveloped, underfinanced or underresourced. The proposed venture studio framework shall facilitate a more dynamic process of bringing startup concepts to life starting from idea inception. Inviting angel investors, venture capital funds, accelerators, incubators, and other relevant parties to provide your feedback. #aifc #afsa #venture #studio #startup #entrepreneur

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Invest in Visions and Incofin Investment Management continue supporting MKBANK (JSCB Microcreditbank) Uzbekistan, one of the few state-owned banks in our portfolio, thanks to its country-wide rural outreach, sizable microfinance portfolio, impactful social initiatives on women/youth entrepreneurship and solid progress towards implementing ESG. Beyond these, we have been observing ongoing improvements of MKBANK's (JSCB Microcreditbank) human capacity, efforts to align with global best practices, advancements in digitalization and collaborations with leading global institutions such as Barclays UK, Invest International, International Fund for Agricultural Development (IFAD), Islamic Corporation for the Development of the Private Sector (ICD) and The World Bank Group. We look forward to further enhancing our cooperation with MKBANK (JSCB Microcreditbank) and I am very thankful to everyone involved in this transaction Sergej Leon Shkolnikov, CFA, Dr. Carlos De Las Salas Vega, Elena Mende, Gaëlle Guignard, Heidy Antonella Zuzunaga Ferrigno, Paula L Garzón Salcedo, Abbos Djurabaev, Iroda Sadikova, Akmal Khamidov. #partnership: Incofin Investment Management – Invest in Visions – MKBANK (JSCB Microcreditbank) - #financialinclusion in #Uzbekistan

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The Banking Sector in Cyprus underwent significant changes since 2013. It is evident that these changes aimed at sector consolidation or even merger of local Banks with larger regional or european banks. This trend is not new to Europe, the same strategy has been followed in other member states as a measure to strengthen the Banking sector and facilitate financial integration in the eurozone. What will this mean for Cyprus in the near future ? Will Cyprus end up with no locally registered banks? will only subsidiaries or even branches of other european banks operate on the island in the near future? https://lnkd.in/dBM_Uzds

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Uzbekistan mobile bank TBC UZ raises $38.2M to expand its financial products Uzbekistan’s only mobile-exclusive bank, TBC Bank Uzbekistan, owned by London Stock Exchange-listed TBC Bank Group, has raised $38.2 million in a fresh equity investment. It plans to expand its local presence in the country and introduce new financial products, as well. TBC Bank Group has led the latest funding in TBC Bank Uzbekistan by infusing $23 million, while shareholders European Bank for Reconstruction and Development (EBRD) and World Bank’s International Financial Corporation (IFC) have participated in the round by investing $7.6 million each. After serving customers in Georgia, TBC Bank Group decided to expand outside that country’s borders in 2019 and found Uzbekistan as its first international market. The bank started its Uzbekistan operations in 2020 through a separate entity, TBC Group Uzbekistan, which launched the mobile-only bank after its debut, with no physical branches in the country. The plan was to leverage Uzbekistan’s increasing digitization effort and foresee business growth in the country, which has the biggest population after Russia and Ukraine in the region — the second-largest among all the Commonwealth of Independent States countries — and has upright economic and socio-demographics. “Before TBC came in, there were no banking apps in Uzbekistan … Fast forward four years, most of the banks have got a mobile app, but TBC is far ahead of the field,” said Oliver Hughes, head of international business at TBC Group, in an exclusive interview. According to official data, Uzbekistan has a 70% smartphone penetration rate and 77% internet penetration rate; 59% of its population of 37 million is under 30 years old, making it a viable market for a mobile-specific business. TBC Bank Uzbekistan offers a mobile app through which customers can open bank accounts and access services including cash loans and deposits. This omits the requirement of physically going to a bank branch to access banking. Hughes told TechCrunch that a couple of years ago, customers in Uzbekistan typically had to visit their bank and stand in a queue to get any of their banking work done. Alongside the mobile-only bank, TBC Group Uzbekistan owns Payme, the digital payments app for individual users and small businesses, as well as the Sharia-compliant credit business, called Payme Nasiya. To broaden its coverage, it looks to integrate some experiences from these two businesses within the bank or sync them with the bank’s operations. For instance, through its app, TBC Group Uzbekistan will offer tips, recommendations and user-generated content on local events, entertainment, concerts and travel to provide complementary services that are not strictly financially related. Some of these features will first arrive on the Payme app but will be available to the TBC Bank Uzbekistan customers over time. Source Techcrunch #fintech #banking #banking

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Astana International Financial Centre Achieves Major Milestones in 2024 Renat Bekturov, head of the Astana International Financial Centre (AIFC), presented 2024's first-half achievements to President Kassym-Jomart Tokayev. The AIFC has attracted over $12 billion in investments to Kazakhstan, surpassing the 2025 target. Participants contributed 115 billion tenge to the national budget, with 29.8 billion tenge paid in the first half of 2024. This growth is due to more participants and increased activity. In early 2024, over 500 companies joined the AIFC, raising the total to nearly 3,000 and creating over 7,600 jobs by Q2's end. President Tokayev was informed of new initiatives and upcoming events, including the Astana Finance Days 2024 on September 5-6. He stressed the importance of using AIFC's infrastructure to boost Kazakhstan's economy. More: https://lnkd.in/eF7b5z9x

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