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Turkish bank’s Azerbaijani subsidiary increases lending

Business Materials 3 May 2016 20:27 (UTC +04:00)

Baku, Azerbaijan, May 3

By Azad Hasanli - Trend:

Ziraat Bank Azerbaijan increased lending to customers by almost twice from 11.17 million manat to 20.65 million manat in the first quarter of 2016, the bank's financial report said.
The official exchange rate is 1.5072 AZN/USD as of May 4.

According to the report, the bank's assets reached nearly 114.9 million manat, including 44.7 million in foreign currency.

The assets of Ziraat Bank's Azerbaijani subsidiary amounted to 90.2 million manat in the fourth quarter of 2015. Almost 35.5 million of this amount accounted for the foreign currency, the report said.

Ziraat Bank Azerbaijan also issued the loans to other banks in foreign currency worth 18.85 million in manat equivalent in January-March 2016, while the loans to other banks amounted to 23.4 million manat in the fourth quarter of 2015.

The bank itself drew loans worth 22.66 million manat from banks in the first quarter of 2016. Almost the entire amount or 20.66 million in manat equivalent accounted for the loans in foreign currency.

The bank had 1.88 million manat cash as of the end of the first quarter of 2016, which is by 1.7 million manat more than in the fourth quarter of 2016.

Almost a third (32.8 million manat) of Ziraat Bank Azerbaijan's assets is kept on the deposit accounts in other banks. Moreover, the bank invested 8.9 million manat in real estate in the first quarter of 2016.

Ziraat Bank's subsidiary has also invested 1.6 million manat in various equipment, furniture, movable property and others since 2015.

The bank's liabilities reached 58.8 million manat as of the third month of 2016, including foreign currency obligations worth 52.46 million in manat equivalent. Ziraat Bank Azerbaijan's liabilities increased by 63.3 percent during the quarter.

The bank's deposits increased by four times from 4.7 million manat to 18.85 million manat during the reporting period, including deposits of physical entities - by 16.27 million manat. Almost all deposits or 18.1 million are in foreign currency.

The bank's profit hit nearly two million manat as of the first quarter of 2016 compared to 4.4 million manat in the fourth quarter of 2016.

Ziraat Bank Azerbaijan has increased the aggregate capital by 3.4 percent up to 55.85 million manat since early 2016.

The adequacy ratio of the total capital of the bank is much higher than the norm of the country's central bank (10 percent) and hits 36 percent. This figure hit 46.3 percent in the fourth quarter of 2015.

The Turkish T.C. Ziraat Bankasi obtained a license from Azerbaijan's Central Bank to conduct banking activities through its subsidiary JSC Ziraat Bank Azerbaijan in late 2014. The bank began its activity in July 2015.

TC Ziraat Bankası has been operating on the banking market of Azerbaijan since 1995 as one of the founders of Azer-Turk Bank. Currently, the Turkish bank owns 12.37 percent. Its subsidiary Ziraat Bank International AG owns 1.08 percent in this joint bank.

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