IBA-Georgia’s net profit rises by almost 2.5 times over 2014

Business Materials 25 August 2014 16:46 (UTC +04:00)

Baku, Azerbaijan, Aug. 25

By Zulfiyya Gurbanova - Trend:

Assets of International Bank of Azerbaijan-Georgia (IBA-Georgia) stood at 112.87 million laris in the second quarter of 2014, Georgia's National Bank (NBG) told Trend Aug. 25.

IBA-Georgia is a subsidiary bank of the International Bank of Azerbaijan, based in the Georgian capital of Tbilisi.

The bank's assets fell by 28.5 percent throughout the year - in late second quarter of 2013 the figure was 157.9 million laris.

Over a third of the IBA-Georgia's assets are placed in the freely convertible currency, while 66 percent (74.52 million laris) are placed in the national currency of Georgia.

Some 1.84 million laris were accumulated in cash and cash equivalents of the IBA-Georgia, which is 75.2 percent higher than as of July 1, 2013.

The bank's loan portfolio dropped by 25.5 percent and amounted to 94.78 million laris. For comparison, in late June 2013, this figure was 127.3 million laris.

The bank issued over a quarter of loans in national currency (26.35 million laris), while loans worth an equivalent of 68.43 million laris were issued in the freely convertible currency. Reserves in the bank's loan portfolio totaled 10.86 million laris in late June 2014.

IBA-Georgia's total liabilities in the reporting period were 85.36 million laris, decreasing by 35.7 percent over the year. Among the liabilities the funds placed on current accounts and as deposits, fell by almost 62.6 percent to 3.58 million laris.

The bank attracted fixed term deposits worth 4.93 million laris, 4.86 million laris of which accounted for deposits in freely convertible currency, and only about 72,000 laris were the deposits in the national currency.

IBA-Georgia's authorized capital has not changed throughout 2014 and totalled 22.69 million laris as of late June 2014.

Meanwhile, the bank's total capital stood at 27.51 million laris (including 4.8 million laris of retained earnings, and 51,930 laris from asset revaluation).

The total capital's volume grew by 9.8 percent. For comparison, in late second quarter of 2013, this figure was 25.05 million laris.

IBA-Georgia received total interest income of 6.03 million laris at interest expense of about 2.8 million laris.

Thus, the bank's net interest income in the second quarter of 2014 was 3.22 million laris, or 24.4 percent less than the amount received in the same period of last year (4.26 million laris).

IBA-Georgia concluded the second quarter with a net profit of 1.33 million laris, the net income increasing by almost 2.5 times.

IBA-Georgia was registered by Georgian Justice Ministry in November, 2006.

The bank serves both Azerbaijani and Georgia clients.

Georgian National Bank's official exchange rate for Aug. 25 is 1.7252 GEL/USD.

Edited by CN