FINCA Azerbaijan discloses annual report for 2018
By Trend
"FINCA Azerbaijan" Non-Bank Credit Organization was able to maintain profitability during 2018, building upon previous 2016-2017 efforts to shrink operational costs with a focus on improving operational efficiency.
The company achieved 4.1 million manats operational profit before implementation of newly updated International Financial Reporting Standards (IFRS 9). FINCA Azerbaijan implemented IFRS9 standards in 2018 and this reduced the profitability by 3.9 million manats for 2018. However, IFRS9 implementation had a positive impact on the previous year’s retained earnings, which resulted in a considerable increase in equity. FINCA resumed more active lending operations at end of 2018, therefore the main drivers of operating profit were strong collections and recoveries as well as significant reductions in operating expenses.
Currently, the capital of the company is 3.7 million manats which is 12 times higher than the regulatory requirement. Total equity stands at 7.7 million manats as of Dec. 31, 2018.
In 2019, FINCA Azerbaijan has continue to focus on increasing operational efficiency and is steadily increasing its regional branch presence in-line with the company’s current 5 year plan.
About FINCA Azerbaijan
Launched in 1998, FINCA Azerbaijan is part of FINCA Impact Finance’s global network of 20 banks and microfinance institutions that profitably and responsibly provides impactful financial services to enable low-income individuals and communities to invest in their futures. As a leading microfinance institution in Azerbaijan, FINCA Azerbaijan serves small businesses across the country with various loan products intended to promote profitable business activity. The company puts emphasis on agriculture lending. For more information, visit www.finca.az
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