Azerbaijani International Bank expects to double net profit in 2012

Azerbaijan, Baku, Nov. 16 / Trend A. Akhundov /

International Bank of Azerbaijan (IBA) expects to double net profit by late 2012, head of IBA department on Islamic Banking Behnam Gurbanzade said at the V Baku International Banking Conference of the CIS member-states "CIS financial markets: new opportunities and global risks" today.

"As of late 2011, the IBA undivided profit was 150 million manat and 50 million manat by the end of the first half of 2012," he said. "As of 2012, we expect the indices to be better than in 2011."

He said that the bank got net profit at the level of 25 million manat in 2011, 21 million manat as of the first six months. Last year's figure is expected to double by late 2012.

As of July 1, 2012, around 35 percent of the Azerbaijani banking market, 30 percent of the loan portfolio of the sector, 35 percent of the total deposit portfolio, 21 percent of the total capital and 23 percent of profit before taxation fall to IBA.

"The bank is expanding the activity with the retail and corporate sector," he said. "At present, the bank has 846,000 clients - physical entities (excluding 1.5 million pension cards), 13,000 corporate customers."

IBA was established in 1992 as the successor of the Azerbaijan branch of "Vnesheconombank". IBA has a dominant position in the banking sector. The state share in the authorized capital of the bank is 50.2 percent, the remaining shares are distributed among private legal and physical entities.

The official exchange rate is 0,7848 AZN/USD on Nov. 16.