Azerbaijani bank plans to diversify portfolio of securities in 2011
Azerbaijan, Baku, March 19 / Trend I. Khalilova /
Azerbaijani PashaBank expects for receiving the profit worth 5-6 percent from the operations with securities in 2011 due to the plans to enter the overseas capital markets, the head of the treasury department of the bank Taleh Kazimov said.
"The annual profit worth about 5-6 percent will be expected thanks to the purchase and sale transactions of securities of Western issuers. A high rating will be taken into account in investments though the profit on the securities of issuers from Russia and CIS countries may vary in the range of 7-8 percent," Kazimov said.
At present, the investment portfolio of the bank is 156 million manat, or 31 percent of the assets that are invested in securities, i.e mortgage bonds, state bonds of the Azerbaijani Finance Ministry, the Central Bank notes, repo transactions. About 35 million manat of the total portfolio fall to the mortgage bonds.
Understanding the situation and low profit on the Azerbaijani securities, PashaBank plans to diversify its portfolio.
"First and foremost, we show interest in investing in sovereign bonds of foreign countries, bonds of companies, particularly in Russia, Ukraine, Central Europe. We intend to intensify work in this direction. The new rules are under preparation," he said.
PashaBank was established in June 2007. It operates upon the license of the Central Bank of Azerbaijan on January 28, 2007.
"PashaBank", along with Pasha Insurance, PASHA Life, Pasha Travel and Pasha Construction, is included in Pasha Holding. It is an investment company, rather than a classic holding company.
PASHA Holding owns 60 percent of shares, ADOR - 30 percent and Arif Pashayev - 10 percent.