"Ernst & Young" makes conclusion on financial indices of Azerbaijani bank for 2010

Ernst & Young independent auditing company made the conclusion due to a report on the financial condition of Azerbaijani PASHA Bank as of late 2010.

The bank's assets as of the year reached 512.304 manat ($642.065), or 67% more than last year, chief financial manager of the bank Shahin Mammadov said, commenting on the auditor's report issued on February 28, 2011.

This amount consists of loans granted to customers (37%), securities portfolio (31%), cash and finances equated to cash (26%), interbank loans and other assets (5%). The overall loan portfolio increased 1.6-fold compared to 2009 and amounted to 196.081 manat.

Effective provisioning rate on the loan portfolio amounted to 4.2%. The share of non-performing loans in the overall portfolio of the bank amounted to 0.6% compared to last year’s relevant figure of 0.3%.

Bank’s operating profit amounted to 30.334 manat that is by 34% more compared to 2009. Net income received in 2010 decreased by 14% to 13.871 manat compared to 2009.

"This can be linked with a decline in average loan interest rates at markets, changes in assessment methodology and redundancy of interbank and customer portfolio," Mammadov said.

PASHA Bank’s interest income totaled 33.842 manat, noninterest income doubled up to 5.258 manat, and staff costs increased 1.7-fold up to 5.680 manat. The amount of documentary operations amounted to 37.116 manat, including post-financing.

Return on equity (ROE) was 18.2% (16.9% in 2009), return on assets (ROA) 4.1 percent (5.5% in 2009), liquidity ratio 171% (77% in 2009), capital adequacy ratio 62 percent (77% in 2009).

PASHA Bank occupies the 5th place in the market, both in profitability and in volume of assets.


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