12/09/2012
In August, Ernst & Young issued an audit report on the main financial performance of one of the leading participants of the bank market of Azerbaijan - PASHA Bank - following the results of six months.

According to the Member of the Management Board of the Bank, Chief Financial Officer Shahin Mammadov, PAŞA Bank once again secured its positions as one of the leading market players. The cumulative capital reached 177,414,040 AZN, and assets - 630,072,417 AZN, which by 10% exceeds a similar indicator following the results of 2011 (573,879,801 AZN).

The structure of PASHA Bank's assets for the first 6 months of 2012 is as follows:
- Credit portfolio - 45 %
- Securities portfolio - 39 %
- Funds from financial institutions - 7 %
- Money and its equivalents - 5 %
- Other assets - 4 %

In the first half of the year the Bank kept liquidity at desirable level, with insignificant 5 % decrease in the scope of securities portfolio (248,712,806 AZN against 260,975,703 AZN as of the end of the last year). The credit portfolio of the Bank for the reporting period increased by 22 % and constituted 300,334,205 AZN against 246,769,000 AZN following the results of 2011.

The share of the non performing loans, (NPL) in the general credit portfolio is 10.84 % against 10,75 % following the results of last year. The major part (67 %) of the problem loans is attributed to two corporate customers. Though as per the results of the first 6 months of 2012 these customers have improved their performance, the Bank decided not to change the status of these credits, taking into consideration strong competition and temporary difficulties in the sectors represented by these clients. The situation is under strict control of the Bank's Management.

The effective reserve rate this year constituted 6,3 % against 5,2 % in 2011. Following the results of the first six months, client accounts in financial equivalent amounted to 360,237,402 AZN. The interest income of PASHA Bank reached 23,797,325 AZN and non-interest income 3,154,314 AZN. The Bank's profit (tax included) amounted to 7,141,609 AZN and net profit - 5,472,194 AZN. Return on assets (ROA) for the specified period constituted 4,5 %, while return on equity (ROE) reached 18.13 %.

The volume of documentary operations of PASHA Bank for the reporting period has doubled - from 43,689,159 AZN following the results of the last year to 88,403,771 AZN. Now the strategic objective of PASHA Bank is to increase the portfolio of trade financing to 105,000,000 AZN by the end of 2012.