Losses of IBA’s Moscow branch exceed $44M
Baku, Azerbaijan, Nov. 16
By Azad Hasanli – Trend:
Subsidiary of the International Bank of Azerbaijan (IBA) in Russia, IBA-Moscow, has completed the third quarter of 2016 with a loss of 2.9 billion roubles ($44.23 million), reads the bank's financial report.
The official exchange rate for Nov. 16 is 65.55 RUB/USD.
The bank's revenues exceeded 4.18 billion roubles, however, such a significant loss arose due to the need to finish creating reserves, according to the report. The profit of IBA-Moscow was nearly 9.3 million roubles last year.
As of early October 2016, the bank's assets amounted to 24.5 billion roubles, which is twice less than at the beginning of the year.
IBA-Moscow placed a one-third of its assets (6.67 billion roubles) in the Central Bank of Russia and other commercial banks of the country. During the reporting period, the loan portfolio of the IBA-Moscow amounted to 11.5 billion roubles (3.3 times reduction since the beginning of the year).
This reduction is due to the fact that IBA-Moscow handed over a substantial part of the loan portfolio to the Aqrarkredit non-banking credit organization in the first half of 2016 as part of the rehabilitation program of the parent bank, the International Bank of Azerbaijan, said the report.
Earlier, Moody's reported that Aqrarkredit CJSC bought out the distressed assets of IBA-Moscow worth $417.8 million (about 26.3 billion roubles).
Liabilities of IBA-Moscow exceeded 22.3 billion roubles versus 49.06 billion roubles as of late 2015. Funds of credit organizations totaled 5.8 billion roubles, while funds and deposits of customers amounted to 29.8 billion roubles.
IBA-Moscow was founded in 2002.