PASHA Bank to direct 90 percent of profits in 2012 to recapitalization

Business Materials 11 September 2012 17:20 (UTC +04:00)

Azerbaijan, Baku, Sept 11 /Trend A.Akhundov/

PASHA Bank plans to receive net profits of 11.5 million manat as a result of 2012, Chairman Farid Akhundov told Trend on Tuesday.

"We do not expect a large increase in profit compared to last year. According to the budget forecast, the bank plans to receive profit at the level of about 14 million manat before taxation, and 11.5 million manat - after taxation. We plan to implement our budget parameters this year." Akhundov said.

He noted that, as in previous years, about 10 percent of profits in 2012 will be paid to the bank's shareholders as a dividend, and the rest will be directed to capitalization.

"At present, the total capital of the bank is about 180 million manat. We have enough capital for the bank to fulfill its strategic options. We have one strategy - to improve the quality of service, the development of Internet banking and working with the corporate sector and other forms of service," Akhundov said.

PASHA Bank was established in June, 2007 and operates under licence of the Central Bank of Azerbaijan dated Jan.28, 2007.

The Bank, along with Pasha Insurance, PASHA Life, Pasha Travel and Pasha Construction, is included in the Pasha Holding Company which is actually an investment company, but not a classic holding company.

Kapital Bank is also included in the structure of the Pasha Group. The Holding owns 99.75 per cent of the shares in Kapital bank.

Pasha Bank shareholders are: PASHA Holding with 60 per cent, ADOR Ltd with 30 per cent and Arif Pashayev with 10 per cent.

Official exchange rate on Sept 11 0.7852 AZN'USD