International Bank of Azerbaijan Acquires Controlling Stake in Davr Bank, Marking Major Expansion into Uzbekistan

The International Bank of Azerbaijan (ABB), the country’s premier state-owned financial entity, has made a significant stride into the Uzbek banking market by acquiring a 51% controlling interest in Davr Bank, a prominent local private commercial institution.

Valued at approximately €86 million by S&P Global, this transaction represents one of the largest direct investments from South Caucasian capital into Central Asia’s financial sector.

Agreement details and market share

This acquisition establishes ABB’s direct presence in Uzbekistan’s dynamic financial services market, with S&P Global noting that it places Davr Bank’s long-term issuer credit rating on CreditWatch with positive outlook.

Bilateral trade between Azerbaijan and Uzbekistan is projected to hit €856 million by 2030, and the merged entity is poised to become a key clearing and credit hub facilitating this growth.

Davr Bank’s expertise in SME financing will complement ABB’s robust corporate resources, creating a synergistic partnership.

Abbas Ibrahimov, Chairman of ABB’s Management Board, described the deal as “a historic first step in our geographical expansion strategy” and called it “a great honour.”

He added, “We view this as the foundation of our long-term commitment in Uzbekistan, aiming to be a reliable partner for businesses, citizens, and the national economy.”

Ibrahimov noted that the transaction elevates banking services to a new qualitative level, emphasizing that ABB’s experience, innovative technologies, and strong capital will enable Davr Bank to offer advanced financial products swiftly.

S&P Global highlighted that the transaction requires regulatory and anti-monopoly approvals, with legal procedures expected to conclude in the second half of 2026, paving the way for the merged entity to begin operations.

Lutfulla Ubayev, Founder and Chairman of Davr Bank’s Supervisory Board, commented that the partnership ensures “greater stability and a significant technological advancement for our institution.”

Financial indicators

The financial profiles of both institutions present a complementary picture.

ABB boasts total assets of around €7.8 billion, serving over 17,500 corporate clients and 3 million individuals through 78 branches nationwide. In Q1 2026, ABB reported a net profit of approximately €60 million.

Davr Bank, with assets of about €910 million, ranks as the 20th largest bank in Uzbekistan. Established in 2001, it specializes in micro and small business lending, operating through 43 branches and serving over 1.4 million clients.

According to S&P Global, Davr Bank’s return on average equity has consistently surpassed 35% in recent years, peaking at 35.6% in 2025.

The agency forecasts sustained profitability, expecting returns to remain above 20-25% over the next three years.

Post-acquisition, Davr Bank is projected to constitute 10-11% of ABB’s consolidated assets and equity.

Technology and corporate operations

The acquisition includes the integration of ABB’s digital banking platforms and risk management systems with Davr Bank’s infrastructure.

ABB’s foreign market access through direct investment will provide banking support for Azerbaijani companies in Central Asia, facilitating seamless import-export operations.

Uzbekistan’s economy has been embracing foreign capital reforms, with partial banking sector privatization as a cornerstone.

The revamped institution will cater to Davr Bank’s local clientele and Azerbaijani businesses in Central Asia.

Joint efforts aim to expedite cross-border payments, issue letters of credit, and broaden trade financing options.

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