Major Azerbaijani bank increases net profit by almost 49%
Baku, Azerbaijan, July 5
By Kheyraddin Nasirzade - Trend:
Xalq Bank, one of four major banks of Azerbaijan, completed last year with a net profit of 25.225 million manats, which is 48.9 percent more than in the previous year, Trend reports refering to the audited report of the holding prepared by Baltic Caspian Audit LLC.
According to the report, interest income over the year increased by 9.269 million manats, amounting to 109.399 million manats. After deducting interest expenses in the amount of 23.158 million manats, net interest income amounted to 86.241 million manats, which is 15.6 percent more than in the previous year.
After deducting the expenses for creating reserves to cover potential losses on assets in the amount of 24.893 million manats, net interest income before paying contingent expenses related to taxes and banking activities increased significantly by 25.5 percent to 61.348 million manats.
Commission incomes of the bank decreased by 22.9 percent, reaching 4.377 million manats. Revenues from currency operations decreased by 1.7 times, reaching 1.888 million manats. The volume of reserves related to the impairment of non-interest assets amounted to 3.039 million manats. As a result, non-interest income compared with 2017 increased 2.2 times, to 10.25 million manats.
During the reporting period, the bank significantly increased staff costs by 38.2 percent, allocating 21.33 million manats. General and administrative expenses increased by 14.4 percent, reaching 13.863 million manats. Costs associated to depreciation and other expenses increased by 3.8 percent to 4.931 million manats. As a result, profit before tax amounted to 31.579 million manats, which is 50 percent more than in the previous year.
After deducting income tax in the amount of 6.353 million manats, the bank’s net profit amounted to 25.225 million manats, of which the share of shareholders was 99.98 percent.
(1.7 manats = 1 USD on July 5)
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