Azerbaijan's biggest bank enters Uzbek market with Davr Bank acquisition
Azerbaijan's largest financial institution, the International Bank of Azerbaijan, is expanding its corporate banking operations by acquiring a 51% controlling stake in Uzbekistan's Davr Bank in a deal valued at €86 million.
The largest state-owned financial institution in Azerbaijan, the International Bank of Azerbaijan (ABB), has officially entered the banking sector of Uzbekistan. Under the new agreement, the bank will acquire a 51% controlling stake in Davr Bank, which is a local private commercial institution.
The transaction, valued at approximately €86 million according to S&P Global, is one of the largest direct investment projects of South Caucasian capital into the Central Asian financial markets.
The agreement aims to combine the technological and corporate banking expertise of both institutions, formalising the entry of the bank into Uzbekistan through a direct acquisition.
Agreement details and market share
According to S&P Global, this acquisition gives ABB a direct presence in the rapidly changing financial services sector of Uzbekistan, placing the long-term issuer credit rating of Davr Bank on CreditWatch with positive implications.
With trade between the two countries is expected to reach €856 million by 2030, according to bilateral state agreements, the new financial institution will become one of the main clearing and credit centres serving this volume.
The expertise of Davr Bank in financing small and medium enterprises will operate alongside the extensive corporate resources of ABB.
Abbas Ibrahimov, Chairman of the Management Board of ABB, has hailed the deal as "the first historical step towards the geographical expansion goal" and said the deal is a "great honour".
"We assess this project as the beginning of our long-term activity in Uzbekistan, and we want to be a reliable financial partner for business, citizens, and the country's economy," he added as he outlined upcoming plans.
He described this transaction as "taking banking services to a qualitatively new stage,",\ and highlighted that "experience, innovative technologies, and sustainable capital of our new partner will allow Davr Bank to provide advanced financial products to its customers in the shortest possible time".
S&P Global stressed that the transaction is still awaiting official approvals from regulatory and anti-monopoly authorities. All legal procedures are due to be completed during the second half of 2026 and will allow the newly merged entity to commence formal operations.
The Founder and Chairman of the Supervisory Board of Davr Bank, Lutfulla Ubayev, has also commented on the new deal and stated that the partnership will “guarantee higher stability and a strong technological leap for our bank."
Financial indicators
Both institutions have differing financial profiles.
ABB Bank currently manages total assets of approximately €7.8 billion. The institution serves more than 17,500 legal entities and 3 million individual clients through a network of 78 branches across the country. ABB Bank's net profit in the first quarter of 2026 amounted to approximately €60 million.
Davr Bank's total assets are approximately €910 million, and it is the 20th largest financial institution in terms of total assets. It was registered in Uzbekistan in 2001 and focuses mainly on the micro and small business lending segment. The institution carries out active operations through 43 branches, serving a customer base of more than 1.4 million clients.
S&P Global has calculated that the return on average equity of Davr Bank consistently exceeded 35% over recent years, reaching 35.6% in 2025.
The international rating agency expects this profitability to remain robust and above 20 to 25% over the next three years.
Upon completion of the acquisition, Davr Bank will account for 10 to 11% of the total assets and equity of the consolidated ABB group.
Technology and corporate operations
As part of the acquisition, ABB Bank will synchronise its existing digital banking platforms and risk management systems with Davr Bank's infrastructure.
ABB Bank's access to the foreign market in the form of direct investment will play the role of banking support to finance the economic activities of Azerbaijani companies in Central Asia and ensure the uninterrupted operation of import-export operations.
Uzbekistan's economy has been undergoing a serious reform process for foreign capital in recent years, and the partial privatisation of the banking sector is a key element of this process.
The renewed financial institution will serve both Davr Bank's existing local clients and Azerbaijani enterprises operating in the Central Asian region.
As a result of the joint activity, it is planned to accelerate cross-border payments, issue letters of credit and expand trade financing instruments.
