International rating agency Fitch Ratings on Tuesday revised Ipoteka bank OTP Group's Outlook to Positive from Stable. At the same time, the bank's Long-Term Issuer Default Ratings (IDRs) were affirmed at 'BB'.
Fitch also upgraded the bank's Viability Rating (VR) to 'b+' from 'b'. This indicator assesses the bank's intrinsic financial strength, namely its ability to meet its obligations independently and withstand risks relying on its own financial resources.
Fitch also affirmed the bank's Shareholder Support Rating (SSR) at 'bb'.
"The upgrade of the Viability Rating reflects an improvement in the domestic operating environment for Uzbek banks in recent years, along with Ipoteka bank OTP Group's progress in addressing legacy asset-quality risks, return to sustainable profitability, and much higher capitalisation," Fitch said.
The agency also expects these improvements to be sustained in the near term.
"The revision of Fitch's Outlook to 'Positive' is an important recognition of the results of Ipoteka bank OTP Group's transformation and the contribution of our entire team. For us, it is recognition of the work we have been consistently carrying out to make the bank stronger and more resilient. We will continue moving forward and delivering new results," said Adam Szentpéteri, Chairman of the Management Board of Ipoteka bank OTP Group.
Among the key factors determining the bank's rating, Fitch highlights improved asset quality, stronger profitability and strengthened capitalisation.
In particular, Ipoteka's impaired loans ratio (Stage 3 under IFRS 9) declined to 19.7% at end-2025 from 23% at end-1H24. Fitch expects it to further reduce materially to below 13% by end-2026 on the continuing resolution of impaired legacy exposures and resumed loan growth.
At the same time, Ipoteka bank OTP Group continues to demonstrate strong profitability. Fitch forecasts the bank's operating profit/risk-weighted assets (RWAs) ratio to exceed 6% in 2026. This means that the bank continues to demonstrate a strong ability to generate earnings and build capital through its own operations.
Another important factor is the marked strengthening of capitalisation. Ipoteka's Fitch Core Capital (FCC) ratio rose markedly to 18.5% at end-2025 from 12% at end-2024. Fitch expects it to improve further to about 22% by end-2026. A high level of capital provides the bank with an additional loss-absorption capacity and allows it to better withstand potential losses.
Fitch also notes the improvement in the operating environment for Uzbekistan's banking sector as a whole. This has been supported by progress in banking sector reforms, particularly in strengthening banking regulation and addressing legacy risks, as well as stable business conditions and robust economic growth. In 1H26, Uzbekistan's economy grew by 8.5% year-on-year.
Fitch also highlights the role of OTP Bank. Ipoteka bank OTP Group is part of the international banking group, which provides the bank with access to its parent bank's expertise in risk management and retail lending, as well as potential financial support.
As a result, Fitch expects Ipoteka to continue improving its asset quality, maintaining strong profitability and strengthening its capitalisation in the coming years.
Earlier, Ipoteka bank OTP Group reported its financial results for the first half of 2026, becoming the most profitable bank in Uzbekistan for the second consecutive quarter. The bank's IFRS net profit reached UZS 1.24 trillion, up 43% year-on-year.
