Baku branch of Iranian bank looks to increase loan portfolio
Baku, Azerbaijan, May 7
By Kheyraddin Nasirzade – Trend:
The Baku branch of Bank Melli Iran intends to increase its loan portfolio till late 2019, a source in the Baku branch of Bank Melli Iran told Trend.
The bank is not interested in increasing the deposit portfolio, but intends to increase the loan portfolio due to high liquidity of the Baku branch.
As for the issue of changing the bank’s strategy regarding the interest rate of loans, the source said that the bank’s strategy will change depending on the market requirements.
The source also added that an increase in the interest rate may adversely affect the customer loyalty, therefore, a decrease in the interest rate of loans is a priority for the bank to retain positions in the market.
The assets of the Baku branch of Bank Melli Iran for 2018 increased by 9.89 percent up to 110.44 million manats. The loan portfolio of the bank increased by 6.6 percent reaching 3.5 million manats for the year.
Moreover, net profit for the year decreased by 69.1 percent, reaching 2.14 million manats. The bank's capital also increased. The capital reached 51.01 million manats in 2017, then it increased by 4.2 percent up to 53.15 million manats in 2018.
Bank Melli Iran has been operating in Azerbaijan since 1993.
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