Prepared Audit Opinion on the Financial Performance of PASHA Bank for the First 6 Months of 2012

In August, the company Ernst & Young provided an audit opinion on the financial indicators of a systemically important participants in the banking market of Azerbaijan - PASHA Bank - up to six months.

According to member of the Management Board, Chief Financial Officer Shahin Mammadov, PASHA Bank again retained its position as one of the leading players in the market. The aggregate capital reached 177,414,040 AZN, and assets - 630,072,417 AZN, which is 10% higher than at the end of 2011 (573,879,801 AZN).

PASHA Bank asset structure for the first 6 months of 2012 is as follows:

- Loan portfolio - 45%

- Investment portfolio - 39%

- Due from financial institutions - 7%

- Cash and cash equivalents - 5%

- Other assets - 4%

In the first half of the liquidity of the Bank maintained at the desired level, with a slight 5% decline in the securities portfolio (248,712,806 AZN 260,975,703 AZN against at the end of last year). The bank's loan portfolio for the reported period increased 22% to $ 300,334,205 AZN 246,769,000 AZN against up to 2011.

The share of non-business loans (non performing loans, NPL) to total loan portfolio was 10.84% ??as against 10.75% in the last year. Most (67%) of bad loans were related to unfulfilled obligations of two clients. Although for the first six months of 2012 these clients improved their performance, the Bank's has decided not to change the status of the loans, taking into account the strong competition and the timing of the sectors represented by these customers. The situation is under scrutiny Bank's management.

Effective provisioning rate was 6.3% against 5.2% in 2011. At the end of six months of customer accounts in the financial equivalent totaled 360,237,402 AZN. PASHA Bank interest income totaled 23,797,325 AZN, non-interest - 3,154,314 AZN. The Bank's profit (before tax) amounted to 7,141,609 AZN, net profit - 5,472,194 AZN. Return on assets (ROA) for the period was 4.5%, while the return on equity (ROE) - 18.13%.

During the reported period, the volume of documentary operations PASHA Bank doubled - from 43,689,159 AZN for the last year to 88,403,771 AZN. Currently, the strategic goal PASHA Bank is expanding portfolio of trade finance to 105,000,000 AZN at the end of 2012. -15D-

 

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