Azerbaijan's largest bank to acquire controlling stake in Uzbekistan's Davr Bank
Azerbaijan's state-owned ABB Bank will acquire a 51% stake in Uzbekistan's Davr Bank in a deal worth about €86 million, marking one of the largest South Caucasus investments into Central Asia's financial markets.
The International Bank of Azerbaijan (ABB), the country's largest state-owned financial institution, has formally entered Uzbekistan's banking sector by agreeing to acquire a 51% controlling stake in Davr Bank, a local private commercial lender. According to S&P Global, the transaction is valued at roughly €86 million and ranks among the largest direct South Caucasus investments into Central Asia's financial markets.
Deal terms
S&P Global said the acquisition gives ABB a direct foothold in Uzbekistan's fast-evolving financial services sector, prompting the agency to place Davr Bank's long-term issuer credit rating on CreditWatch with positive implications. With bilateral trade between Azerbaijan and Uzbekistan projected to reach €856 million by 2030 under state agreements, the combined entity is expected to become a key clearing and credit hub supporting that trade flow.
ABB's Chairman of the Management Board, Abbas Ibrahimov, described the deal as the first historical step in the bank's geographic expansion strategy and a great honour, adding that ABB aims to be a reliable long-term financial partner for businesses, citizens and Uzbekistan's economy. Davr Bank's founder and Supervisory Board chairman, Lutfulla Ubayev, said the partnership would guarantee greater stability and a technological leap for the bank.
The deal still requires approval from regulatory and anti-monopoly authorities, with all legal procedures expected to be finalised in the second half of 2026.
Financial profiles
ABB manages roughly €7.8 billion in total assets, serving more than 17,500 corporate clients and 3 million individuals through 78 branches. Its net profit in the first quarter of 2026 stood at approximately €60 million.
Davr Bank, founded in 2001 and ranked Uzbekistan's 20th-largest bank by assets (about €910 million), focuses on micro and small business lending and serves over 1.4 million customers through 43 branches. Its return on average equity has exceeded 35% in recent years, reaching 35.6% in 2025, with S&P Global forecasting it to stay above 20-25% over the next three years. Once completed, Davr Bank will represent 10-11% of the consolidated ABB group's total assets and equity.
ABB plans to integrate its digital banking platforms and risk management systems with Davr Bank's infrastructure, aiming to speed up cross-border payments and expand trade financing instruments.
