Business plan

INTRODUCTION

This Business Plan of JSCB Kapitalbank (hereinafter referred to as the "Bank") for 2026, developed with due consideration of the financial statements for 2025 and the overall vision for the Bank's further development, describes the principal areas and the most promising business lines on which the Bank will focus its attention in the upcoming year 2026, as well as the methods for their implementation in order to coordinate the activities of all structural divisions and enhance operational efficiency. Documents containing the key business growth indicators, including metrics of the Bank's financial position and performance, are attached as a supplement to this Business Plan.

The Business Plan serves as the foundation for subsequent management control over the Bank's financial activities and facilitates prompt adaptation to potential changes in the financial environment.

All operational plans of the Bank's structural divisions for 2026 must be formulated based on the principles outlined in, and in full compliance with, this Business Plan.

The fundamental concept underlying the creation of this Business Plan is the Bank's mission, namely, the establishment of a robust financial supermarket operating within the most profitable segments of the most promising sectors of the financial market. Specifically, one of the key aspects to be emphasized is customer-centricity, as well as maintaining leading positions by adhering to the principle of striving for championship, which best describes the Bank's financial performance.

The Business Plan supports the Bank's primary objective: to further strengthen its position as a modern, innovative, and dynamically developing bank in Uzbekistan, providing a comprehensive range of financial services throughout the entire territory of the country.

To achieve this objective, the Bank will focus its efforts on addressing the following tasks:

• Maintaining sustainable growth rates of key indicators while complying with all prudential requirements, including capital adequacy and liquidity ratios;
• Fundamental improvement of the asset structure, particularly increasing the share of income-generating assets and their yield levels, to further enhance profitability ratios;
• Further development of modern banking technologies and their phased integration into all areas of the Bank's business to increase operational efficiency and service quality;
• Increasing efficiency indicators through the optimization of business processes, improvement of service quality and speed, while simultaneously reducing operational costs through the integration of modern technologies and, in particular, new software;
• Expanding the client base based on the development of the product line to offer clients a full spectrum of services, tailored to the individual characteristics of each client;
• Becoming the bank of first choice for clients, achieving and maintaining leading positions in service quality. To this end, the Bank will take measures in 2026 to increase necessary operational expenses, including expenditures on automation, payroll fund expenses, as well as enhancing the qualifications and professional potential of its employees.

BANK DEVELOPMENT FORECASTS

In 2026, the Bank will continue its efforts to improve the performance of automated banking systems and the equipment required for their operation. This step will facilitate the introduction of new interactive services, ensure fast and round-the-clock customer service, and also enhance the quality of data analysis.

A significant portion of business processes will be automated, which in turn will contribute to the transition toward personalized communications generated based on data analytics and modeling tools, accessible to clients through their most convenient interaction channels.

Business productivity will be substantially increased through more effective cost management, the implementation of Activity-Based Costing models, and the efficient allocation of regulatory capital. In 2026, the Bank aims to develop its retail lending business at a moderate pace while focusing its efforts on corporate lending and lending to small and medium-sized businesses, which will help make the Bank's loan portfolio more diversified.

The Bank has developed the Business Plan for the upcoming year 2026 broken down by specific business segments. Strategic initiatives and key drivers include:

- Corporate Business (hereinafter – CB);
- Small Business (hereinafter – SME);
- Retail Business;
- Cards and Payments.

Growth in key metrics and income will be achieved through the systematic development of all strategic business lines.

The Bank utilizes its own internal procedures and methodology for calculating the financial results of each business division, taking into account transfer pricing; therefore, this forecast has been prepared using said methodology.

By the end of 2026, the Bank plans to increase its assets to UZS 68.6 trillion (+22% year-on-year), liabilities to UZS 60.1 trillion (+22% year-on-year), and total equity to UZS 8.5 trillion (+23% year-on-year).

CORPORATE BUSINESS

The corporate business segment is comprised of the most demanding clients, who prefer to be serviced by multiple banks, possess substantial cash reserves, and utilize a wide array of financial services. Such clients require promptness in payment processing and lending, as well as comprehensive products incorporating sophisticated financial instruments. They prefer to work with highly qualified bank employees who possess in-depth knowledge of the specific industry in which the client operates.

The Bank plans to develop services for clients in this segment by offering tailored individual financial solutions. The Bank will expand its product range in the areas of short-term lending, trade finance, foreign exchange operations, and liquidity management products. Mechanisms will be established for the operational interaction between client managers and client representatives.

In working with the client base, emphasis will be placed on clients with substantial account balances and high retention rates. This approach will allow the Bank to maintain balances on corporate legal entity accounts (both fee-based and non-fee-based) at a level of UZS 15.9 trillion by the end of 2026 (including amounts in foreign currency).

Servicing corporate client accounts in national and foreign currencies is projected to generate commission income of no less than UZS 170 billion, while servicing foreign currency accounts and providing foreign trade support services is expected to generate approximately UZS 550 billion.

In order to maintain the stability of the resource base, special attention will be paid to attracting term deposits from legal entities. By the end of 2026, the balance of such deposits is planned to reach UZS 6.4 trillion (including amounts in foreign currency). The Bank also plans to expand letter of credit transactions and guarantees to strengthen the deposit base.

Funds raised will serve as one of the primary sources for financing the Bank's active operations, particularly lending. The corporate loan portfolio is projected to increase to UZS 14.6 trillion in 2026.

SMALL BUSINESS

The small business segment represents significant interest for the Bank in 2026, as it ensures an acceptable level of profitability while simultaneously allowing for effective diversification of the client base. Thanks to economic reforms and active state support for small business enterprises, the number of potential Bank clients is growing rapidly.

The service policy for small business clients in 2026 will focus on developing client servicing processes through remote and digital channels, where clients will be provided with convenient solutions for monitoring and managing their business finances. Further development of digital channels will alleviate the workload of client managers and open up opportunities for introducing new personalized service packages that account for industry-specific features.

Given the projected growth of the client base, emphasis will be placed on attracting clients with high turnover activity. This will enable an increase in both the number of accounts and account balances of small business legal entities (including both fee-based and non-fee-based accounts) to UZS 1.9 trillion by the end of 2026 (including amounts in foreign currency).

The Bank plans to actively develop small business lending. The SME loan portfolio is projected to increase by over 55% by the end of 2026, reaching a volume of UZS 7.2 trillion.

Servicing SME client accounts in national and foreign currencies is projected to generate commission income of no less than UZS 80 billion, while servicing foreign currency accounts and providing foreign trade support services is expected to generate UZS 121 billion.

RETAIL BUSINESS

In order to diversify the loan portfolio, the Bank does not have a target for aggressively growing the retail lending portfolio in 2026. The outstanding balance of the retail loan portfolio in 2026 is forecasted at UZS 23 trillion. The primary focus will be directed towards managing non-performing debt, which will entail an increase in operational/commission expenses but will ultimately lead to stabilization and subsequent improvement in portfolio quality and a reduction in the level of overdue debt.

Balances of retail clients (individuals) are projected to increase to UZS 27.5 trillion (including balances of non-residents).

To develop the retail business in 2026, the Bank must:

• Make simple operations such as recurring payments, fund transfers, payments for goods and services, and savings convenient, fast, and beneficial. To this end, special attention will be paid to payroll projects and transfers of funds between individual accounts. It is necessary to develop savings products and promote the use of payment cards;
• Develop and foster partnership programs for payment cards with international payment systems;
• Build long-term, close relationships with clients. To address this challenge, it is essential to understand client needs and adopt an individual approach to each client segment. The Bank will develop product packages that are more attractive than standalone products. To create such packages, the Bank will expand its capabilities for collecting, storing, and analyzing client information. Moreover, retail clients are strategically important to the Bank, as their funds constitute a major portion of the Bank's resource base while being subject to a low degree of outflow risk.

FINANCIAL PERFORMANCE

In 2026, the Bank's net interest income (net of income from inter-branch transactions) is planned at UZS 4.4 trillion, with net non-interest income projected at UZS 0.65 trillion.

Taking into account the trends and forecasts described above, the Bank's net profit for 2026 is projected to be no less than UZS 1.5 trillion. Accordingly, Return on Assets (ROA) is expected to be 2.5%, Return on Equity (ROE) 20.7%, and the Cost-to-Income Ratio (CIR) 39%.