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IBA informs shareholders about obligations

Business Materials 23 July 2010 17:06 (UTC +04:00)
Decisions were made on the following issues - the approval of financial statements for the IBA in 2009 recommended by the audit committee, dividend policy and the composition of the audit committee of the bank at a general meeting of shareholders of the Azerbaijani International Bank held July 20 under the chairmanship of Finance Minister Samir Sharifov, the bank said.
IBA informs shareholders about obligations

Azerbaijan, Baku, July 23 / Trend /

Decisions were made on the following issues - the approval of financial statements for the IBA in 2009 recommended by the audit committee, dividend policy and the composition of the audit committee of the bank at a general meeting of shareholders of the Azerbaijani International Bank held July 20 under the chairmanship of Finance Minister Samir Sharifov, the bank said.

The financial reports for 2009 were approved by the general assembly. In 2009, net profit amounted to 128 million manat.

The bank completed the last quarter of last year and two quarters of this year at a profit. In accordance with the requirements of the legislation, shareholders make a decision about its distribution and the issuance of dividends.

About 66 percent participated in the meeting of shareholders. The joint share in the total number of shares was 80 percent, including the Ministry of Finance. They voted for paying dividends for the year, but not as before - by quarter. About 34 percent of those present voted against.

According to the decision, the amount of the bank's audit committee was reduced to five people. It should be noted that the number of members of the Audit Committee was increased from 3 to 7 at an extraordinary general meeting of shareholders held October 19, 2009. It was increased due to the need to strengthen controls over the activities of management in terms of significant asset growth, expansion of activities, increasing the number of subsidiaries and representative offices of the bank's branch network.

Today, IBA is the most capitalized bank in the country. Its share capital reaches 240 million manat. As of July 1, 2010, the balance sheet capital is 627.7 million manat. During the first half of this year, the IBA has made tax payments worth 22 million manat to Azerbaijani budget. The IBA revenues, which is the only state bank in the country, exceeded 189 million manat for six months of 2010. The bank earnings before taxes amounted to 41,4 million manat, and net profit - 31,5 million manat.

Thus, the IBA honorably fulfilled its obligations to shareholders and ensure profitable operation. It serves as the basis for the distribution of dividends.

Long-term Issuer Default Rating (IDR) in foreign currency, submitted by authoritative international rating agency Fitch Rating, was increased from "BB +" to investment-grade "BBB-". This estimate corresponds to the long-term IDR of Azerbaijan.

The bank's rating in foreign currency, submitted by the international rating agency Moody's Investors Service, was similar to the rating of Azerbaijan. It exceeded its corresponding level by two stages in the national currency. After Moody's changed methodology for ratings, ratings of banks, exceeding the sovereign ratings of countries, where they operate, were reduced worldwide. According to new rules, rating level is defined in the national currency Baa3 for the bank. It is currently one step ahead of the corresponding rating of Azerbaijan.

On July 23, the official exchange rate is 0,8036 manat to $1.

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