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. 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." 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.
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