IBA Loss More Than One Billion Manats

JSC International Bank of Azerbaijan has published a financial report for 2015, which passed the audit of Deloitte & Touche.

The same auditor gave an unqualified opinion on the previous year, but as it turned out, the bank's assets were managed in the worst way in that period.

According to the financial report, the IBA has suffered a loss in the amount of 1 billion 13.9 million manats. The bank has paid income tax in the amount of 201.7 million manats.

Overall, the bank's losses have been estimated in the amount of 823.6 million manats. In 2014, the IBA net profit amounted to 14.3 million manats.

It is noteworthy that at the nominal value of AZN 0.27 the loss per share amounted to 0.35 manats.

According to the balance sheet, in 2015 the company Agrarcredit was transferred bad assets worth a total of 5 billion 628.9 million manats for management.

The volume of loans as of 1 January 2016 was 5.6 million manats. This is 28.4% lower than a year earlier.

The amount of deposits from the public and companies grew by 71% and exceeded 7 billion manats in 2015.

In March 2015 it became suddenly known that the bank provided customers with unsecured loans for several hundred million AZN. After that several criminal cases were opened against the customers - influential persons in society. The Chairman of IBA Board Jahangir Hajiyev was first removed from office "for health reasons" and later arrested.

The Azerbaijan Finance Ministry owns 82.23% of shares. During the year, the state's share in the bank rose by 10.17%. How the remaining 17.77% of the shares are distributed is not reported.   -----08D