30/06/2010
PASHA Bank received a statement from the Ministry of Taxes of the Republic of Azerbaijan with regard to the increase of its share capital.

PASHA Bank has been operating in the banking sector of Azerbaijan since 2007. PASHA Bank, by using the strength of its share capital and reliability indicators, continues its mission in the banking market and dynamically expands the scope of its activities in the modern market economy environment. As a matter of fact, Bank is reinforcing its positions among banks in terms of its continuous and stable profitability indicators. According to the financials results, audited by Ernst & Young, the Bank's net profit grew from AZN 10.765 thousand at the end of 2008 up to AZN 16.059 thousand at the end of 2009, which represents 49% of increase.

The Bank ranks second among the largest banks in the Republic in terms of the size of its share capital. In June 2010, the Bank increased its share capital due to the profit in 2009 to AZN 115 million 407.1 thousand. The Bank is expected to increase its share capital due to the profit to be earned in 2010-2011 as well.

In general, PASHA Bank's share capital has increased 4 (four) times. At the time of its establishment the Bank's share capital constituted AZN 10 million. This figure reached AZN 35 million at the end of 2007, AZN 58 million at the end of 2008 and subsequently AZN 100 million thanks to the shareholders' investments.

On October 28, 2008 the President of the Azerbaijan signed a decree "On Stimulation of the Growth of Capitalization Rate of the Banks, Insurance and Reinsurance Companies" aimed at accelerating the development of financial sector in Azerbaijan, improving the quality of insurance services as well as strengthening the solvency of the banks, insurance and reinsurance companies and stimulating the growth of capitalization rate.

In accordance to this decree, PASHA Bank and other mentioned companies will be exempted from relevant profit tax, in case they increase their share capital due to the earned profit.