Аннотация
This study examines how capital structure impacts profitability in Uzbekistan’s banking sector, focusing on five major commercial banks KDB Bank, InFinBank, Aloqabank, Ipoteka Bank, and SQB during the period from 2018 to 2023. Using panel data drawn from audited financial statements, key financial ratios such as Return on Assets (ROA), Return on Equity (ROE), and Debt-to-Assets Ratio (DAR) were calculated and analyzed. The regression results reveal a clear trend: higher leverage is significantly linked to lower profitability, suggesting that greater debt levels tend to undermine financial performance among Uzbek banks. In contrast, larger banks with stronger equity positions consistently show better returns. These findings challenge traditional financial theories that emphasize the benefits of leverage, highlighting instead the value of conservative capital strategies in transitional and emerging economies. The study emphasizes the need for balanced capital management and stronger regulatory frameworks to foster sustainable growth and stability in Uzbekistan’s evolving banking sector.