Baku, Azerbaijan, Feb. 13
By Azad Hasanli – Trend:
Fitch Ratings has affirmed Turkey-based Pasha Yatirim Bankasi A.S.'s (PBTR) National Long-Term Rating at 'BBB+(tur)', which is a subsidiary of Azerbaijan’s PASHA Bank. The Outlook is Stable.
The bank has aggressive growth targets and aims to increase its total assets to TRY1.8 billion by end-2020 (end-9M17: TRY799 million), Fitch Ratings said.
Asset quality is so far strong (end-3Q17: non-performing loan ratio of 0%), underpinned by the bank's customer base of large corporates and also due to the only short history of operations.
The bank has managed to moderately diversify its funding profile since end-2015, via bilateral borrowings from local and foreign banks (end-9M17: 21% of total funding excluding related-parties), several short-term local bonds (18%) and money market transactions from Takasbank (8%).
Nevertheless, despite on-going diversification of instruments and sources, Fitch expects PBTR to remain primarily dependent on funding from its parent and sister banks (end-9M17: 35% of total funding), but also on the broader Pasha Group, as with a $25 million five-year maturity Eurobond issued in the Azerbaijani market in September 2017 (17%).
Turkey’s Banking Regulation and Supervision Agency (BDDK) approved PASHA Bank's purchasing a 79.9 percent share in TAIB Bank, which was renamed to PASHA Yatirim Bankasi, on Dec. 29, 2014. Later, PASHA Bank increased its stake to 99.9 percent. Other shareholders own the rest part.
PASHA Bank has been operating in Azerbaijan since 2007.
PASHA Bank renders a range of corporate banking services, including issuance of loans, operations in the securities market, assets management, and treasury services.
Presently, PASHA Bank has a subsidiary in Georgia.
(3.8 TRY = $1 on Feb. 13)