Capital of Azerbaijani bank falls below regulatory requirements

Finance Materials 2 May 2019 14:32 (UTC +04:00)

Baku, Azerbaijan, May 2

By Kheyraddin Nasirzade - Trend:

In the first quarter of 2019, losses of Azerbaijan’s Bank of Baku amounted to about 7.8 million manats, Trend reports with reference to the bank’s financial report.

This is while in the first quarter of 2018, the net profit of the bank amounted to 234,000 manats.

The total capital of the bank during the reporting period amounted to 18.7 million manats (regulatory requirement is 50 million manats). The adequacy ratio of total capital is 6.57 percent.

The bank’s total assets in January-March this year amounted to 270.6 million manats, which is 13.2 percent less than in the same period last year. In the structure of the bank’s assets, cash decreased by 14.7 percent to 17.7 million manats. The balances of nostro accounts also decreased more than twofold, to 16.7 million manats. The volume of loans issued to other banks and financial institutions for the reporting period amounted to 10.8 million manats.

Investment in securities decreased by almost five times, reaching 3.6 million manats. The volume of the loan and leasing portfolio, including overdrafts, increased by 1.7 percent to 180.9 million manats. The fixed assets and intangible assets of the bank decreased by 12.8 percent to 12.5 million manats. Other assets also decreased by 18.8 percent to 28.3 million manats.

The total liabilities of the bank decreased significantly by 13.5 percent, reaching 238.5 million manats. In the structure of liabilities, the volume of the client deposit portfolio of the bank decreased by almost 20 percent, reaching 142.3 million manats at the end of the reporting period.

The volume of deposits and loans taken from other banks and financial institutions increased by 13.1 percent to 35.8 million manats. The volume of securities issued by the bank together with the subordinated debt for the year remained unchanged, amounting to 24.2 million manats. Other liabilities of the bank increased by more than 68 percent to 36.1 million manats.

(1.7 manats = 1 USD on May 2)