Azerbaijan's biggest bank enters Uzbek market with Davr Bank acquisition

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, a local private commercial institution.

The transaction, valued at approximately $150 million (€128.5m), 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 Uzbekistan's rapidly changing financial services sector, placing Davr Bank's long-term issuer credit rating on CreditWatch with positive implications.

With trade between the two countries 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.

Davr Bank's expertise in financing small and medium enterprises will complement ABB's extensive corporate resources.

Chairman of the Management Board of ABB Abbas Ibrahimov hailed the deal as "the first historical step towards the geographical expansion goal" and said it 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".

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 nationwide. 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, making it the 20th largest financial institution by total assets. It was registered in Uzbekistan in 2001 and focuses mainly on micro and small business lending. The institution operates through 43 branches, serving more than 1.4 million clients.

S&P Global has calculated that Davr Bank's return on average equity has consistently exceeded 35% in recent years, reaching 35.6% in 2025.

The international rating agency expects this profitability to remain robust, at 20 to 25%, over the next three years.

After the acquisition, Davr Bank will account for 10 to 11% of the consolidated ABB group's total assets and equity.

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 through direct investment will support Azerbaijani companies' economic activities in Central Asia and ensure uninterrupted import-export operations.

Uzbekistan's economy has undergone a major reform process for foreign capital in recent years, and 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.

The plan is to accelerate cross-border payments, issue letters of credit and expand trade financing instruments as a result of the joint activity.