Azerbaijani bank almost doubles net profit

Business Materials 13 May 2019 16:36 (UTC +04:00)

Baku, Azerbaijan, May 13

By Kheyraddin Nasirzade - Trend:

In January-March 2019, the Azerbaijan Industry Bank (ASB) received a net profit of 3.21 million manats, which is almost two times more than in the same period last year, Trend reports with reference to the bank’s financial report on May 13.

The bank’s profit for the first quarter of this year was formed at the expense of interest income of 6.3 million manats and non-interest income of 3.9 million manats. The bank’s interest expenses amounted to 3.169 million manats, non-interest expenses - to 2.636 million manats. As a result, the bank’s net interest income amounted to 3.13 million manats, and operating net profit - to 4.487 million manats. Expenses allocated to the creation of reserves to cover potential losses on assets amounted to 548,000 manats. Profit tax amounted to 730,000 manats.

The total value of assets of the bank during the reporting period decreased by 0.14 percent, amounting to about 903.7 million manats. In the assets structure, the bank’s cash funds grew more than twice compared to the first quarter of last year, reaching 15.6 million manats. The balances on correspondent accounts of the Central Bank of Azerbaijan (CBA) increased 2.4 times to 12.7 million manats. Balances on nostro accounts increased 11.5 times to 180.5 million manats. The value of deposits in other financial institutions, including banks, decreased 1.6 times to 377.1 million manats.

The value of customer loan portfolio increased by 9.3 percent to 288.6 million manats. Target reserves to cover possible losses on loans amounted to 6.3 million manats. Fixed assets together with real estate, not participating in banking, amounted to about 985,500 manats. The bank’s participation in Azerbaijan Industry Leasing LLC amounts to 1 million manats and remained unchanged compared to last year.

The bank’s participation in other economic societies increased by 3.4 times to 16.2 million manats. Intangible assets after depreciation increased by 20.8 percent to 2.8 million manats. Other assets of the bank, minus target reserves, decreased by 5.9 percent to 8.3 million manats.

The total value of the bank’s liabilities as of March 31 this year, decreased slightly by 0.64 percent compared to the same period last year to 808 million manats. In the structure of the bank’s liabilities, the value of deposits, excluding other banks and financial institutions, increased by 8.3 percent to 634.9 million manats.

The value of deposits of other banks and financial institutions decreased by 31.9 percent to 113.7 million manats. The value of loans taken from other financial institutions except for banks amounted to 49.5 million manats, which is 5.7 percent less than in the same period last year. Other liabilities of the bank increased by 29.6 percent to 9.9 million manats.

The total capital of the bank increased by 4.3 percent, reaching 95.7 million manats. The value of ordinary shares issued into circulation amounted to 60 million manats. Retained net income amounted to 28.5 million manats. The funds allocated for general reserves amounted to 7.2 million manats. The coefficient of aggregate capital adequacy amounted to 15.11 percent.

(1 USD = 1.7 AZN on May 13)


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