IBA Net Income Decreased Twofold

In 2014, operating profit of OJSC International Bank of Azerbaijan was 33.4 million manat, which is 46 million manat less than in the previous year. This is evidenced by the audited financial statements (auditor - LLC Deloitte & Touche) released today.

According to the report of IBA Group, which includes the banks IBA, IBA-Georgia and IBA-Moscow, insurance, leasing and processing companies gained more than 810 million manat. This was 220 million manat more than in 2013. However Interbank left reserves of 198,400,000 manat for possible losses on loans given to customers. This is 11 times more than the previous year. Probably the Bank fears the growth of bad loans due to the devaluation of the manat, resulting in difficulties with the return of loans.

In 2014, administrative and other IBA Group operating expenses amounted to about as much as in 2013 - 146 million manat.

The Group’s profit before income taxes amounted to 33.4 million manat. Tax profit of 7.9 million manat was paid. The bank also left in reserves 11 million 147 thousand manat for possible losses on exchange rate fluctuations. Thus, the bank owed its shareholders 14 million 363 thousand AZN at the end of 2014, which was 62.1 million manat less than in 2013. Each share has brought shareholders 0.01 manat, with a nominal value of 0.27 manat. At the recent general meeting of shareholders of the bank, it was decided not to distribute the profit.

Last year, the assets of the Group IBA increased by 19.7% and reached 9.2 billion manat on January 1, 2015. Of these, 7.85 billion manat is loans.

The state represented by the Ministry of Finance monitors IBA (51.07% stake). Shares worth 590.2 million manat are in circulation.

Another commercial bank in Azerbaijan, which is under the control of the state, is Azerturk Bank (75%). The bank’s capital is 50 million manat. ---08B