Azerbaijan, Baku, Nov. 1 / Trend N. Ismayilova /
The Moody's International Rating Agency predicts growth of Azerbaijani Texnikabank's (TB) liquidity due to the increase in customer deposits, Moody` s said.
"TB's cost-to-income ratio stood at 45 percent in 2010 (45.8 percent in 2009). As TB is not planning to change its business model focused on wholesale banking, its efficiency indicators are likely to remain stable in the short-to-medium term," the report said.
TB is a medium-sized bank in Azerbaijan, ranked sixth in terms of total assets (3.8 percent market share), and fifth by deposits (5 percent market share) as at year-end 2010.
TB has been predominantly a corporate bank, hoverer in recent years the bank increased its focus on retail lending. Loans to individuals , mainly represented by mortgage loans, comprise 34 percent of total loans (25 percent in 2009). The corporate loan portfolio mainly focuses on trade and construction companies comprising approximately 66 percent of the loan portfolio, as at 30 December 2010 (year-end 2009:75 percent).
Despite Azerbaijan's challenging credit conditions in recent years, TB has not reduced its business activity; its loan portfolio increased by almost 11 percent during the first six month in 2011 and 5.6 percent in 2010. It is also continuing to develop its branch network and improve its regional retail-deposit market shares. At present, TB operates a branch-network of 35 offices.
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.