TODAY.AZ / Business

"Azerdemiryolbank" JSB attracted over $9 million of foreign investment last year

24 January 2006 [04:32] - TODAY.AZ
Volume of assets of the Azerdemiryolbank Joint-Stock Bank (JSB) formed AZM 248.8 billion as of the beginning of the current year and this exceeds the previous year figure by 71.7%.

As APA reports, AZM 142.3 billion of assets are comprised of the credit portfolio and it means AZM 59.7 billion or 72.2% of growth in comparison with the beginning of the year.

Volume of funds attracted from local banks by the end of the past year amounted to AZM 39.5 billion. The National Entrepreneurship Support Fund granted AZM 32.5 billion of assets to the Bank in general.

In order to enhance cooperation with international finance institutions, Azerdemiryolbank attracted over $9 million of foreign investment in 2005. So, the credit lines granted by the European Bank for Reconstruction and Development (EBRD) in amount of $2 million under the program of small and middle entrepreneurship and 900 thousand euros by the German-Azerbaijani Foundation (GAF) were completely utilized.

In addition, the Bank has the credit line totaling over $6 million with such influential foreign banks as the Bank Austria, Raiffeisen Zentralbank Oesterreich, Commerzbank Drezdnerbank. Attracted assets were increased by AZM 65.2 billion or 58.2% to AZM 177.8 billion during the year. Funds of enterprises and insurance companies and deposits of physical and owner physical persons constitute AZM 15.2 billion and AZM 73.2 billion in its structure, respectively.

It should be reminded that 25%+1 share holding of "Azerdemiryolbank" JSB was purchased by the EBRD at AZM 9 billion in 2005. As a result of reevaluation of basic assets of the Bank, the ownership capital of the Bank was increased to AZM 36 billion and aggregate capital to AZM 63.6 billion as of the end of 2005.

Besides, the EBRD disbursed 300 thousand euros and GAF 200 thousand euros of technical assistance to the Bank for implementation of the development programs of the Bank.

Volume of banking operations also increased considerably in the reporting year and as a result, deposits of population increased by AZM 18 billion or 33.2% to AZM 73 billion during the year. Depositors were paid AZM 6.8 billion of interest yields during the period under review. In the mean time, as a full member the Bank issued over 11 thousand plastic cars of the Eurocard-Mastercard and VISA international payment systems and transferred $6.4 million by means of the MoneyGram, Bistraya Pochta with Russia and CIS states, Migom and Contact payment systems.

Volume of credits granted by Azerdemiryolbank to corporate clients increased by AZM 41.9 billion in the reporting year and comprised 65.8% of the total credit portfolio. Operations on letters of credit and guarantee in 39.6 billion AZM equivalent were carried out in the reporting year as well. On the other hand, the Bank opened 2 new regional branches and increased the number of money access machines to 33 last year.

As a result, the incomes and costs of the Bank totaled AZM 48.3 billion and AZM 41.5 billion in 2005, respectively. 46.2% of it is comprised of interest yields, 53.8% of revenues from operations, 21% of total expenses are comprised of interest costs and 51.5% of expenses for operations. The Bank completed the reporting year with AZM 6.8 billion of profit.


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