IBA posting hefty profits despite global crunch
The ongoing financial crisis has caused crashes in
world stock and money markets and bankruptcies of numerous
financial and credit institutions around the globe. But, despite
tremendous financial woes, the performance of the International
Bank of Azerbaijan (IBA), a major bank in the South Caucasus region
and the country`s leading bank, has been successful, according to
its latest figures.
Considering the current challenges in the world of finance, hefty growth in the IBA`s profitability is particularly remarkable. In January-June 2009, the bank`s after-tax net profit grew 61.5% in comparison with the same period of 2008 to exceed 62.1 million manats ($77.7 million), which accounts for 70% of last year`s total profits. The IBA`s gross assets amounted to more than 3.4bn manats ($4.25bn). The allocated consumer loans made up 356m manats ($445m), which accounts for 14.5% of the bank`s gross credit portfolio worth some 2.454bn manats ($3.06bn), the IBA said in a statement.
Also, the IBA continues successfully drawing deposits from natural entities. As of July 1, the population`s deposits in the bank amounted to 488m manats ($610m), or 30.6% of the total deposit portfolio.
The IBA`s gross capital has reached over 446m manats ($557m), with capital stock worth $197m. The bank`s return on equity (RoE) made up 11.55% in the first half of 2009, while return on assets (RoA) - 1.65%. The bank`s overall profitability stood at 32.7%, compared to 20% in the first half of 2008.
Moreover, the IBA maintains its leading position in Azerbaijan`s plastic card market. As of the first half-year, the bank had a total of 1,589,333 active plastic cards. The IBA has set up about 600 automatic teller machines (ATMs) and 2,700 POS terminals.
The IBA`s outstanding performance, positive dynamics of its financial indicators and sustainable development in the conditions of economic stability achieved in Azerbaijan have been repeatedly highlighted by the world`s leading financial institutions and have gained international recognition.
This year, IBA won the first international Platinum Key award for its significant contribution to the development of the national banking system. IBA currently holds top international ratings in Azerbaijan from Fitch (BB+) and Moody`s (Baa2), and in April it was named ``Best emerging markets bank`` by the New York-based Global Finance magazine and ``Best bank of CIS, Central and Eastern Europe`` by the London-based Emeafinance magazine. Earlier, in February, the successful operations of IBA were noted by the Board of Directors of the European Economic Chamber of Trade, Commerce and Industry (EEIG), and the IBA was recognized as the most stable bank under crisis conditions in Europe.
The IBA is also committed to its plans to open representations and subsidiaries abroad. The bank will file a bid for opening a subsidiary bank in Qatar in 2010.
IBA was established in 1992 as a successor of the Azerbaijan branch of the Foreign Economy Bank. IBA has a well-developed branch network and provides banking services to large corporate clients and, to a lesser extent, to individuals.
IBA is the only Azerbaijani bank with state participation. The government`s share in the bank is 50.2 percent, while the rest of the capital is held by private shareholders.
Considering the current challenges in the world of finance, hefty growth in the IBA`s profitability is particularly remarkable. In January-June 2009, the bank`s after-tax net profit grew 61.5% in comparison with the same period of 2008 to exceed 62.1 million manats ($77.7 million), which accounts for 70% of last year`s total profits. The IBA`s gross assets amounted to more than 3.4bn manats ($4.25bn). The allocated consumer loans made up 356m manats ($445m), which accounts for 14.5% of the bank`s gross credit portfolio worth some 2.454bn manats ($3.06bn), the IBA said in a statement.
Also, the IBA continues successfully drawing deposits from natural entities. As of July 1, the population`s deposits in the bank amounted to 488m manats ($610m), or 30.6% of the total deposit portfolio.
The IBA`s gross capital has reached over 446m manats ($557m), with capital stock worth $197m. The bank`s return on equity (RoE) made up 11.55% in the first half of 2009, while return on assets (RoA) - 1.65%. The bank`s overall profitability stood at 32.7%, compared to 20% in the first half of 2008.
Moreover, the IBA maintains its leading position in Azerbaijan`s plastic card market. As of the first half-year, the bank had a total of 1,589,333 active plastic cards. The IBA has set up about 600 automatic teller machines (ATMs) and 2,700 POS terminals.
The IBA`s outstanding performance, positive dynamics of its financial indicators and sustainable development in the conditions of economic stability achieved in Azerbaijan have been repeatedly highlighted by the world`s leading financial institutions and have gained international recognition.
This year, IBA won the first international Platinum Key award for its significant contribution to the development of the national banking system. IBA currently holds top international ratings in Azerbaijan from Fitch (BB+) and Moody`s (Baa2), and in April it was named ``Best emerging markets bank`` by the New York-based Global Finance magazine and ``Best bank of CIS, Central and Eastern Europe`` by the London-based Emeafinance magazine. Earlier, in February, the successful operations of IBA were noted by the Board of Directors of the European Economic Chamber of Trade, Commerce and Industry (EEIG), and the IBA was recognized as the most stable bank under crisis conditions in Europe.
The IBA is also committed to its plans to open representations and subsidiaries abroad. The bank will file a bid for opening a subsidiary bank in Qatar in 2010.
IBA was established in 1992 as a successor of the Azerbaijan branch of the Foreign Economy Bank. IBA has a well-developed branch network and provides banking services to large corporate clients and, to a lesser extent, to individuals.
IBA is the only Azerbaijani bank with state participation. The government`s share in the bank is 50.2 percent, while the rest of the capital is held by private shareholders.
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