Azerbaijani international bank in lead position on asset growth rate in Georgia

Business Materials 12 December 2011 15:37 (UTC +04:00)

Georgia, Tbilisi, Dec. 12 / Trend N. Kirtskhalia /

The assets of the subsidiary bank of the International Bank of Azerbaijan's branch (IBA) increased from 61.9 million to 100.4 million lari in Georgia in the third quarter of this year, or 62.19 per cent. This is the highest growth rate among the banks operating in Georgia. The rating for the third quarter was prepared by BPI.

Ukrainian Privatbank ranks second on the growth rate of assets. Its resources increased during the period from 319.8 million to 291.3 million lari, or 22.25 per cent.
Arabic KSB ranked third with 14.24 per cent. Its assets increased from 317.2 million lari to 362.4 million lari.

The asset growth was observed in the Georgian banks - Bank of Georgia and TBC Bank. Their growth rates hit 3.16 per cent (from 4.046 billion lari to 4.174 billion lari) and 12.6 per cent (from 2.645 billion lari to 2.979 billion lari).

The assets were reduced in five banks: Investment Bank (-24.32 per cent), Kazakh Khalik Bank (20 per cent), British HSBC (15.1 per cent), Progress Bank (2.5 per cent) and the Caucasian development bank - (0.2 per cent).

In general, the assets of 19 Georgian banks increased by 6.73 per cent, from 11.22 billion lari to 11.975 billion lari.

British bank HSBC has already announced it is pulling out of Georgia. Some assets were acquired by bank Republic. Negotiations over the remaining part are being held.

The International Bank of Azerbaijan established its second subsidiary bank outside Azerbaijan - IBA-Georgia in November 2006.

IBA was established in 1992 as the successor tothe Azerbaijan branch of Vnesheconombank. IBA holds a dominant position in the banking sector. The state share in charter capital of the bank is 50.2 per cent. The remainder is distributed amongst private legal and physical bodies.

The official exchange rate is 1,6575 GEL/USD on Dec. 12.