BAKU, Azerbaijan, June 2
By Eldar Janashvili - Trend:
Rabitabank, one of the large banking organizations in Azerbaijan showed high indicators in 1Q2020 much exceeding minimum normative requirements of the country's Central Bank (CBA), a source in the bank told Trend on June 2.
The first degree capital made up 88.6 percent, and its adequacy ratio - 17.3 percent with a minimum of 6 and 5 percent for major and other banks, which is about three-fold the minimum standards of CBA, the country's financial regulator.
The bank’s total capital is 105.3 million manat ($61.9 million), and its adequacy ratio - 20.6 percent, respectively, with a minimum of 12 and 10 percent for major and other banks, which is nearly twice the minimum regulatory requirements of CBA.
The leverage ratio (the ratio of capital investments in securities with fixed income) of Rabitabank amounted to 11.7 percent, which is more than twice exceeds the minimum requirements of CBA (5 percent for major and 4 percent for other banks).
“In order to meet any customer’s request in borrowed funds and timely fulfill all obligations undertaken without risks and regulatory violations, a corporate bank must have an adequate, stable and reliable capital, and Rabitabank, setting maintaining trustful relations with customers a priority, is exactly such a bank,” the source said. “High indicators of the bank’s adequacy are among the main criteria for achieving priority goals.”
“Other indicators of Rabitabank also meet all standards and demonstrate the success of following its strategy. Thus, in the first quarter of 2020, the bank’s assets exceeded 934 million manat [$549.4 million], having shown growth by 26 percent since the beginning of the year, which is one of the best 10 indicators in the country's banking sector,” the source noted.
During the 1st quarter of this year, Rabitabank's loan portfolio reached 400 million manat ($235.2 million), an increase of 4 percent. The volume of customer deposits grew by almost one third, up to 686 million manat ($403.5 million). The total capital made up 104 million manat ($61.1 million), having surpassed the minimum requirements in the amount of 50 million manat ($29.4 million) by more than twice, i.e. 54 million manat ($31.7 million).
"The financial indicators once again demonstrate that Rabitabank has high liquidity and a strong capital position, thereby maintaining a stable and dynamic development trend," added the source.
Rabitabank was founded in 1993. Presently, it has 25 branches, including 10 branches in Baku.
(1 USD = 1.7 AZN on June 2)
---
Follow the author on Twitter: @eldarjanashvili