Baku, Azerbaijan, July 19
By Kheyraddin Nasirzade - Trend:
VTB Bank Azerbaijan intends to increase lending during the third quarter of 2019, Chairman of the Management Board of VTB Bank (Azerbaijan) Yevgeniy Kirin said at a meeting with journalists, Trend reports.
He noted that according to the results of the second quarter of this year, the bank’s net profit amounted to about 5 million manats, and according to international financial reporting standards, the bank predicts a net profit of 10 million manats. He also added that the bank intends to increase profits during the second half of the year, financing economic growth.
The chairman went on to say that there is excess liquidity in the market, and that it is necessary to increase the pace of lending to the economy, particularly with regards to lending to small-sized, medium-sized and corporate enterprises. He also noted that lending to natural persons is growing at a faster rate, as can be inferred from data on the first two quarters of the current year.
“In order for growth to be long-term and sustainable, we need to increase the figure in the corporate segment, including small- and medium-sized enterprises (SMEs). We have plans to increase lending to the corporate segment in the third quarter by 20 percent compared to the second quarter,” Kirin said.
It was also noted that the growth rate of the loan portfolio was slightly reduced during the second quarter, which, Kirin said, will be increased in the next quarter. He explained this with the banks having done a lot of work in connection with the payment of compensations under the decree on problem loans and started the active stage of loan restructuring.