Moody `s forecasts increase in Azerbaijani bank's rating
Azerbaijan, Baku, Nov. 1 / Trend N. Ismayilova /
Moody's assigns a E+ bank financial strength rating (BFSR) to Technikabank (TB), which maps to a long term scale of B3. The BFSR reflects TB's historically high appetite for credit risk; its high industry concentrations in loan portfolio; weak asset quality; and low level of loan loss reserves, Moody's report said.
At the same time, the rating is supported by: TB's good market position in Azerbaijan's banking sector; and improving diversification in TB's loan book currently adequate albeit weakening profitability, the bank told Trend on Tuesday.
As of 30 June 2011, Technikabank reported total assets of 547 million manat, shareholders' equity of 76.5 million manat and a net profit of 3.3 million manat, according to its unaudited financial statements.
As of year-end 2010, Technikabank reported total assets of 489.7 million manat, shareholders' equity of 67 million manat and a net profit of 8.4 million manat, according to its audited IFRS financial statements
Texnika Bank operates in Azerbaijan since 1993 and was the 100-percent Azerbaijan-owned bank until 2007.Currently, the majority stockholder (75 percent) of the bank is the World Wines. The bank's Observation Board Chairman Etibar Mamedov and US's Kazimir Investment Caspian Fund hold 15 percent and 10 percent, respectively.
The official exchange rate is 0.7869 manat to $1.