Baku, Azerbaijan, Oct. 9
By Eldar Janashvili – Trend:
The Azerbaijani PASHA Bank’s assets worth about 613 million manat accounted for the subsidiaries of the bank, Trend reports from the press-conference dedicated to the results of the bank’s activity from January to June 2019.
PASHA Bank released the combined financial report of the bank and its two subsidiaries in Georgia and Turkey on Oct. 8. According to the report released at the press-conference, the bank's total assets amounted to 5.043 billion manat at the end of June, which exceeds last year's figure by 574 million manat or 13 percent.
The main share of assets accounts for the loan portfolio (31.6 percent) with a volume of 1.921 billion manat, which increased by 23 percent for the year (of which 519 million manat account for subsidiaries’ share). The volume of investment securities available for sale increased by 57 percent and reached 1.398 billion manat.
At the same time, about 55 million manat accounted for subsidiaries.
“Cash decreased by 31 percent, which is explained by an increase in purchases of investment securities for the same period by 489 million manat,” PASHA Bank’s Chief Financial Officer Bahruz Naghiyev said.
According to the report, the volume of total liabilities from January to June 2019 increased by 15 percent and reached 4.523 billion manat. In the structure of liabilities, the volume of total debts to customers increased by 11 percent and reached 3.689 billion manat.
The liabilities to the banks and state funds in three structures increased by a third and reached 611.871 million manat. The issued debt securities increased by 22 percent and reached 133.641 million manat. Other liabilities exceeded 88.5 million manat.
Commenting on these obligations of the bank, Naghiyev reminded that instability in the economy also affects the activity of a subsidiary bank in Turkey.
"As is known, there is a high volatility of the lira exchange rate in Turkey,” the chief financial officer said.
“The lira exchange rate reached 0.37 manat in the end of the first six months of 2018,” Naghiyev said. “The lira exchange rate reached 0.29 manat in the end of the first six months of 2019. The drop in the exchange rate didn’t greatly affect the activity of the subsidiary in Turkey.”
While summing up the balance sheet, Naghiyev stressed that the bank’s equity for the reporting period remained almost unchanged and amounted to 438.035 million manat, despite the fact that the retained earnings of the bank and its subsidiaries exceeded 103 million manat, showing a 43 percent growth.
The bank’s authorized capital, which is currently the biggest among the authorized capitals of private banks, remained unchanged - 333 million manat.
PASHA Bank has been operating in Azerbaijan since 2007 and it is a member of the PASHA Group of Companies, which is a big investment holding operating in the insurance, construction, construction materials production, tourism and other sectors. Kapital Bank, one of the biggest banks in the Azerbaijani retail market, also belongs to the PASHA Group of Companies.
The first foreign subsidiary bank of PASHA holding - PASHA Bank Georgia has been operating since February 2013. A subsidiary bank PASHA Yatirim Bankasi opened in Istanbul in 2014.
(1 USD = 1.7 AZN on Oct. 9)
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