User:Umid Babaxanov/sandbox

Overview
“Ipoteka-bank” Joint Stock Mortgage Bank (simply referred to as Ipoteka-bank) is universal state-owned bank of Uzbekistan.

Ipoteka-bank is one of the largest banks in Uzbekistan. The Bank has a significant role in the banking sector and constantly holds a strong market position with nearly 9% market share, ranked as a 5th bank by total assets in Uzbekistan. The bank’s brand name “Ipoteka-bank”, which in English means “Mortgage-bank”, fairly indicates absolute leading position at the residential mortgage market ranked 1st in Uzbekistan by residential mortgage loans with a 32% market share, as of 1st December 2021. Although Ipoteka-bank is state-owned it is mainly commercialized with almost all its products provided to clients on commercial basis. The Bank’s principal activity is commercial and retail banking, operations with securities, foreign currencies, and trade financing. The Bank accepts deposits from legal entities and individuals, provides loans, provides transfer services in Uzbekistan and abroad. As of 1st December 2021, the Bank serves serves more than 1.2 million corporate and retail clients through 39 branches and 434 customer service points.

Uzbek government holds 93.68% of the Bank’s shares and historically demonstrated its support via capital injections, state funding and state guarantees. Ipoteka-bank is integrating the best international corporate governance practices and has successful record in raising capital from reputable institutional investors and the 1st bank to be privatized to the strategic investor.

The shares of the Bank have been listed on the Tashkent Stock Exchange since 2003 under the symbol IPTB. The Bank’s free float shares amounted to 2.6 per cent of its share capital.

The Bank’s registered address is: Shahrisabz Street 30, Tashkent, 100000, Uzbekistan.

History
1996: Ipoteka-bank’s history dates back to 1996, when Tashkent Housing Savings Bank was established following governmental efforts to support the welfare of the population of Uzbekistan, particularly to improve the facilities for housing.

1997: It becomes Uzbek Housing Savings Bank as Presidential Decree dated March 1997 points out the necessity of nation-wide dissemination of capital’s experience on housing financing.

2005: The Uzbek Housing Savings Bank was merged with Zamin bank and established as JSCBM “Ipoteka-bank” as the first bank in the country specialized mortgage lending bank.

2006: Ipoteka-bank enforced expanding branch network, number of branches reached to 38, mini-banks to 150 and cash-offices to 600.

2007: Ipoteka-bank was registered in Uzbekistan as a joint stock commercial bank and was licensed to carry out banking and foreign exchange activities and has been operating under the banking licence No.74 reissued by the Central bank of Uzbekistan (CBU). The Bank has since diversified and currently operates in all sectors of the country’s economy.

Moreover, Ipoteka-bank became the first bank to obtain Moody’s rating (B1) with “Stable” outlook.

2016: Ipoteka-bank concentrated to develop retail offices by forming additional 25 mini-banks and 47 cash-offices.

2017-18: Ipoteka-bank and International Finance Corporation (IFC) signed an agreement on bank’s institutional transformation and the Bank started a large-scale transformation with IFC experts.

2019: International Finance Corporation approved to provide USD 35 mln. loans convertible into shares of IFC in the Bank.

2020: Ipoteka-bank successfully issued Eurobonds in the amount of USD 300 million on the London Stock Exchange.

2021: As a result of transformation with IFC, Ipoteka-bank introduced new development strategy, improved corporate governance system with a new organizational structure, new business model, new underwriting system, reorganized risk management system and variable remote services. In 2021, during the 2nd stage of transformation, the Bank concentrated on organizing customer- oriented banking, improved business processes and centralization (front and back-offices) and introduced a multifunctional contact-center.

Ipoteka-bank became the first bank in Uzbekistan to issue Eurobonds in national currency in the amount of UZS 785 bn (equivalent to 75 million US dollars) among corporate issuers on the International Vienna Stock Exchange.

In September 2021, OTP Bank Group (Hungary) has signed a non-binding agreement with the Ministry of Finance of the Republic of Uzbekistan on potential acquisition of a majority stake in Ipoteka-bank.

Vision:
Offering a wide range of solutions to clients, supporting private sector and engaging performance-driven team to join the ranks of 5 top banks in terms of efficiency (as measured by RoE).

Strategic goals:

 * Enhancing information technology to optimize bank processes.


 * Transforming of branches into active sales and consulting centers.


 * Developing employees’ efficiency and improving work environment.


 * Diversification of banking activities with focus on private and retail sectors.


 * Maintaining leading positions through maximum usage of gained experiences.


 * Re-engineering business processes for faster services and better efficiency.

Management
The Bank maintains a comprehensive corporate governance system, which includes its shareholders, the Supervisory Board and the Management Board.

Four from eight Supervisory Board are independent and represented by members with international banking and financial experience.

The Chairman of the Supervisory Board of Ipoteka-bank is Alexander Picker, independent member with a suitable experience in international banking.

The Chairman of the Management Board of Ipoteka-Bank is Elyor Inomjonov, with extensive experience in banking, appointed on February 12, 2021.

== Business  == Ipoteka-bank’s principal areas of activity include commercial banking, retail banking, securities operations, foreign currency operations and trade financing. The Bank offers a comprehensive range of banking services, including state, corporate and retail lending with a particular focus on mortgage lending, deposit taking, cash handling, international money transfers, documentary operations, guarantees, foreign exchange operations and other products.

Ipoteka-bank is seeking to diversify its loan portfolio and expand its client base to further benefit from higher margins on loans attributable to the key sectors of Uzbekistan’s economy, such as the construction sector and residential mortgage market, as well as to further increase its client base amongst small and medium-sized enterprises (SME) and retail customers, including private entrepreneurs and other sectors, on more commercial and market‑orientated terms, while maintaining and developing its existing strong position in the manufacturing (which includes the mining sector), trade and services and agricultural sectors.

Ipoteka-bank's business structure is organized based on three business areas: Corporate, SME and Retail business.

== Financial data (IFRS)                                     ==

Ratings
Ipoteka-bank has the following long‑term ratings from three big rating agencies:

"BB‑" with Stable outlook from Fitch Ratings ,

"B1" with Positive outlook from Moody’s ,

"BB‑" with Stable outlook from S&P Global.

Shareholders
As of 1st January 2022, the interest of the shareholders in the Bank’s share capital was as follows: The majority shareholder of Ipoteka-bank is the Ministry of finance (Uzbekistan) managed by the Government of Uzbekistan, owning 93.68% voting share of Ipoteka-bank's voting shares. The rest of the shares are dispersed among portfolio, private and other individual investors.

Subsidiaries
As of 1st January 2022, the interest of Ipoteka-bank in subsidiaries and associates was as follows:

Bank transformation
The adoption of the Resolution of the Cabinet of Ministers No.523 of June 25, 2019 "On measures to transform the joint-stock commercial mortgage bank Ipoteka-Bank and its subsequent privatization with the participation of the International Finance Corporation" marked a new stage in the transformation and privatization of the bank.

From 2018, Ipoteka-bank launched a large-scale transformation with the cooperation of IFC experts.

Developments during the last years have accelerated trends in shifting customer behaviors from physical to remote channels. The Bank kept innovation and efficiency at the top of our agenda as we responded to the crisis. This allowed the Bank to explore new sources of revenue and reduce operating costs.

In particular, the Bank accomplished a set of works on primary directions such as, raising Ipoteka-bank to a new level that corresponds to the international style, further improvement of corporative management and risk management system, increasing operational productivity, reviewing business model, strengthening paths of small business and retail service more, deep development of information technologies, educating employees in partnership with International Finance Corporation (IFC).

Awards

 * Central Asia Employer Brand Award 2019 – winner of three nominations: “Good deeds”, “Employer’s image” and “Achievement of the year”.


 * National News Agency Awards 2019 – winner of nomination: “The best bank supported people improving living standard”.
 * Central Asia Employer Brand Award 2020 - winner of nomination: “The best bank building an employer image”.