Azernews.Az

BAKU – PASHA Bank has retained its position as Azerbaijan’s biggest commercial bank in terms of shareholder equity this year, with the figure amounting to 141.8 million manats ($180.3 million), a steering board member said Wednesday.

Addressing a press conference devoted to the outcomes of the first half-year, Shahin Mammadov also said the bank’s total assets slightly decreased to about 496.1m ($630.7m) from 512.3m manats ($651.2m) posted in the first half of 2010.

43 percent of the assets was made up by the securities portfolio, while 41 percent was held in loans, 7.2 percent in funds to be transferred by lenders, and 6.4 percent in cash, Mammadov said.

According to him, PASHA Bank’s credit portfolio increased 10 pct to exceed $274.2m, up from $249.2m reported as of the end of 2010.

Mammadov said the bank’s net profit fell 41 pct to $6.447m in the first half-year. He explained the decrease with a reduction in interest rates on loans, increased spending on interest payments due to the rising number of long-term deposits and increased allocations to the credit hedge fund.

The steering board member said PASHA Bank’s strategic goal is to increase its trade financing portfolio to $133m this year.

Mammadov also said that from 2012 the bank will operate on the basis of a new, three-year strategy that will be focused on the non-oil sector of the Azerbaijani economy.

PASHA Bank OJSC was established in June 2007. The bank ranks second in Azerbaijan in terms of the size of its share capital, which stood at $156.2m.

PASHA Bank’s strategic objective is to serve the corporate sector. The main goal of the bank is qualitative development of the business in terms of the priorities arising from its strategy as well as establishment and development of long-term and reliable relations with customers and employees.