Baku, Azerbaijan, April 16
By Sara Israfilbayova – Trend:
The international rating agency Moody's expects the expansion of the loan portfolio of Azerbaijan’s Bank Respublika in 2019-2020, Trendreports referring to the agency.
Furthermore, the base credit rating of the bank was raised from caa1 to b3.
According to agency experts, the increase is due to an improvement in bank profitability and asset quality.
The net profit of the bank amounted to 2.2 million manats in 2018. The bank had a net loss of $10.5 million in 2017.
Moody's expects significant net profit within the next 12-18 months.
The agency raised the long-term deposit ratings of Bank Respublika in national and foreign currencies, and also improved the outlook on the bank's long-term deposit ratings, by changing it from stable to positive.
According to Moody’s experts, the improvement in asset quality is due to both the depreciation of the old portfolio and the increase in the share of new loans provided in accordance with more stringent underwriting standards in 2019-2020.
The stabilized economic conditions in Azerbaijan should benefit the creditworthiness of households and small and medium-sized enterprises, constituting the bulk of the consumers of Bank Respublika’s services.
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