Deposit interest rates in Uzbekistan have fallen to their lowest level in four years, while state-owned banks are increasing their share of the household deposit market, according to data from the Central Bank reviewed by Gazeta.
As of the end of March, the average nominal rate on time deposits in national currency decreased by 0.9 percentage points from February to 18.1%. This is the lowest figure recorded since March 2022 (18%).
The average rate on household deposits remained almost unchanged month-on-month at 20.5% (+0.1 pp), but decreased by 1.6 pp compared to March last year.
Meanwhile, the cost of corporate deposits dropped sharply in March to 15.5% (-1.8 pp).
Despite the decline in interest rates, the total volume of deposits continued to grow. In March, deposits increased by 12.1 trillion soums, reaching 433.9 trillion soums as of April 1. The growth was mainly driven by corporate deposits (+10 trillion soums), while household deposits rose by 2.05 trillion soums.
The largest inflows were recorded at the National Bank of Uzbekistan (+3.36 trillion soums), Ipotekabank (+1.56 trillion soums), and Tenge Bank (+1.16 trillion soums).
At the same time, private banks' activity in attracting household deposits is declining, while state banks are strengthening their positions. In March, deposit base growth in this segment was also observed at Agrobank (+606 billion soums), Uzsanoatqurilishbank (+447 billion soums), and the National Bank (+412 billion soums).
In contrast, eight private banks, including major market players, reduced the volume of deposits attracted from individuals: Ipotekabank by 139 billion soums, Hamkor Bank by 49 billion soums, TBC Bank by 101 billion soums, Tenge Bank by 87 billion soums, and Octobank by 184 billion soums. However, all these banks increased their overall deposit base through corporate deposits.
The dynamics indicate that the deposit market in Uzbekistan is shifting toward state banks: while private banks previously grew their deposit base faster, banks with state participation are now taking the lead.
For comparison: in March 2023, state-owned banks increased household deposits year-on-year (compared to March 2022) by 18.5 trillion soums, while private banks saw an increase of 22.1 trillion soums.
By the end of March this year, the situation had reversed: state banks increased their household deposit base by 23.44 trillion soums, while private banks added only 13.3 trillion soums.
Two years ago, household deposits in private banks (50.5 trillion soums) exceeded those in state banks (38 trillion soums) by 32.9%; now the gap has narrowed to 7.4% (85.9 trillion soums vs. 80 trillion soums, respectively).
In terms of total deposits (including both individuals and legal entities), banks with state participation still maintain the lead — 221.75 trillion soums, compared to 212.2 trillion soums in private banks.
Source: www.gazeta.uz