International Bank of Azerbaijan’s profit in January-September 2017 amounted to AZN 469,898.
Bank says the assets dropped 49.93% to AZN 7,106,530,000, loan portfolio slid 56.83% to AZN 2,271,421,000, liquid assets make up AZN 1,604,712,000, deposits in banks AZN 3,050,949,000.
Liabilities dropped 50.53% to AZN 6,739,125,000. In the structure of liabilities, AZN 2,348,052,000 made up funds of banks and other financial institutions, AZN 437.408 million demand deposits of individuals, AZN 2,537,421,000 demand deposits of legal entities, AZN 1,004,817,000 term deposits of individuals and legal entities.
As of July 1, 2017, the assets stood at AZN 10,616,294,000, residual of liquid assets at AZN 1,455,542,000, loan portfolio at AZN 3,711,035,000. As at the beginning of the third quarter, the deposits in the financial institutions made up AZN 3,049,850,000, savings in IBA amounted to AZN 5,178,014,000.
Authorized capital makes up AZN 1,224,478,000.
Earlier, the IBA announced that in accordance with the restructuring of foreign liabilities ($3.3 billion), new financial instruments have been submitted to the creditors on September 1, 2017 and transfer of certain liabilities to the state has been completed successfully.
The Restructuring Plan was previously approved by an affirmative vote of holders of 93.9% of affected claims at the Claimant’s Meeting held on 18 July 2017, by the Financial Market Supervisory Authority of Azerbaijan on 25 July 2017 and by the Nasimi District Court in Baku at the hearing of the Bank’s application that took place on 17 August 2017.
Khalid Ahadov, Chairman of IBA, commented: “The successful closing of the restructuring process earlier today is a key step in the Bank’s plan to ensure its long-term viability. The Bank is now in a position to work with the Ministry of Finance on completion of the remaining part of the transfer of certain impaired assets to Aqrarkredit. The combination of these two transactions will restore the Bank’s capital position, provide the Bank with the necessary financial strength to implement its business plan aimed at restoration of long-term profitability and also facilitate the Government of Azerbaijan’s objective of privatising the Bank by the end of 2018.”