On December 20, 2016 Moody's Investors Service upgraded the long-term local and foreign currency deposit ratings of Asia Alliance Bank to B2 from B3. At the same time the rating agency has also upgraded the bank's baseline credit assessment (BCA) / adjusted BCA to B2 from B3, its long-term Counterparty Risk Assessment (CR Assessment) to B1(cr) from B2(cr) and affirmed short-term local- and foreign-currency deposit ratings of Not-Prime and its short-term CR Assessment of Not-Prime(cr).
Outlook on all long term Bank Deposit ratings is stable.
The upgrade of Asia Alliance Bank's ratings with a stable outlook is driven by the recent improvements in the bank's risk profile and reflects the bank's reduced appetite for credit risk, track record of strong financial performance, growing business diversification and strengthening business franchise.
Asia Alliance Bank continues to maintain strong capital ratios. As of 30 September 2016, Asia Alliance Bank reported Tier 1 ratio ( Basel I, reported under IFRS) of 23.4% up from 20.76% reported at year-end 2015.
Asia Alliance Bank reports a stronger (compared to B3/B2-rated banks) profitability metrics owing to the bank's good access to low cost corporate deposits, limited reliance on expensive retail deposits; its robust fee generating capacity and operating efficiency.
For 9M 2016, Asia Alliance Bank reported net profit of UZS 29 billion, which translates into a high annualized return-on-average assets of 3.6% (3.9% in 2015 and 4.5% in 2014). The bank's financial results in 2015-2016 were supported by a significant increase of net interest income driven by a larger income stream and lower funding cost.
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