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Azerbaijan's largest bank announces losses for 2015

Economy Materials 28 May 2016 17:09 (UTC +04:00)

Baku, Azerbaijan, May 28

By Azad Hasanli - Trend:

International Bank of Azerbaijan (IBA) has completed the year 2015 with a loss of 823.61 million manats, according to the bank's consolidated financial report audited by Deloitte company.

For comparison, the bank finished the year 2014 with a profit of 14.36 million manats.

The bank's assets in 2015 exceeded 13.66 billion manats compared to nearly 9.2 billion manats in 2014. Loans to customers have a significant proportion in the structure of assets (nearly 5.64 billion manats compared to 7.85 billion manats in 2014) and the funds that will come from Aqrarkredit CJSC in the amount of 5.6 billion manats in exchange for the distressed assets of the bank.

On August 11, 2015, the International Bank of Azerbaijan, the country's Ministry of Finance, Aqrarkredit CJSC and the Central Bank of Azerbaijan signed an agreement under which the IBA will transfer its troubled assets to Aqrarkredit via several tranches during 2015-2017. On January 21 and February 22, 2016, Aqrarkredit already transferred to the bank 500 million manats and 490 million manats, respectively.

Commitments of the bank in 2015 exceeded 12.9 billion manats compared to 8.5 billion manats in 2014. In the structure of liabilities, the largest share falls on customer accounts (nearly 7.1 billion manats), which increased by 73.1 percent for the year. They are followed by funds of other banks - 1.8 billion manats (3.2 percent reduction) and borrowings from financial institutions - 2.26 billion manats (annual growth of 44.9 percent).

As of late 2015, the volume of subordinated loans attracted from the Central Bank of Azerbaijan totaled 600 million manats. The loans were signed in different periods from 2012 to 2015 inclusive. The IBA signed the last subordinated loan with the Central Bank of Azerbaijan on February 27, 2015, in the amount of 250 million manats.

In addition, as of late 2015, the total volume of bonds issued by the bank amounted to 893.65 million manats. During the year, the bank attracted a syndicated loan worth 318.6 million manats on condition of repayment up to April 26, 2016. The volume of loans drawn from the National Fund for Entrepreneurship Support of Azerbaijan at the end of 2015 amounted to 203.4 million manats (with an annual interest rate of one percent).

The share capital of the bank as of late 2015 amounted to nearly 641.3 million manats.

The International Bank of Azerbaijan was founded in January 1992.

The main shareholder is the ministry of finance on behalf of the Azerbaijani government, which owns 54.96 percent of shares, while the remaining shares are owned by private physical and legal entities.

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