Central Bank of Azerbaijan allocates loan to subsidiary of Russian bank

Economy Materials 10 November 2015 20:45 (UTC +04:00)

Baku, Azerbaijan, Nov. 10

By Anvar Mammadov - Trend:

The loan issued by the Central Bank of Azerbaijan (CBA) to the VTB Bank (Azerbaijan) will be allocated to restructuring the currency portfolio of the Azerbaijani subsidiary of the Russian bank, the board member of VTB Bank (Azerbaijan), director of retail business development department Tural Veliyev told Trend Nov. 10.

"These funds will be used for the issuance of loans in national currency to individuals," said Veliyev. "For our bank, these funds are foreign exchange operation rather than loans."

The CBA has allocated to the bank a loan of 10 million manats on favorable terms.

In the third quarter of 2015, the assets of VTB Bank (Azerbaijan) amounted to 378 million manats, which is 30 percent higher than at the beginning of 2015.

The bank's loan portfolio as of October 1, 2015 amounted to more than 347 million manats, which is 24 percent more compared to the beginning of 2015. The deposit portfolio of the bank as of October 1, 2015 increased by more than two times compared to the beginning of 2015 and amounted to 60.7 million manats.

The bank's profit for the third quarter of 2015 amounted to 8.1 million manats, the Tier I capital increased to 40 million manats, the total capital exceeded 53 million manats. Capital adequacy of the Tier I and the total capital of the bank amounts to 11.01 percent and 15.23 percent, respectively.

VTB Bank (Azerbaijan) JSC is a subsidiary of VTB Bank JSC. Shareholders of VTB Bank (Azerbaijan) JSC are: VTB Bank JSC and AtaHolding JSC. VTB Bank (Azerbaijan) JSC provides services to clients of corporate business, small business and private clients. Today, the bank is represented by 14 branches and the Office of Customer Service at the head office.