Azerbaijan's IBA sees assets fall 29% y/y in 2017 after debt restructuring

By bne IntelliNews January 12, 2018

The assets of the International Bank of Azerbaijan (IBA), the largest lender in the country, contracted by 28.9% y/y to AZN8.7bn ($5.1bn) in 2017, the state-controlled bank reported on January 10.

The lender underwent a restructuring of its debt last year, whereby $3.3bn worth of its foreign obligations were swapped for government-backed ones. It was the second government rescue for IBA - the first occasion was in 2015. The bank's problems were the result of a faulty lending model, coupled with currency depreciation and a depressed business environment, in which generating new business has been difficult.

Once its balance sheet is clean, Baku intends to reprivatise IBA, having increased its share in the lender to over 80% since 2015.

At end-December, IBA's obligations stood at AZN7.75bn, its loan portfolio at AZN1.8bn and its deposit portfolio at AZN1.5bn, the lender reported.

The lender said that it was making efforts toward increasing profitability, optimising costs and strengthening its capital position, which stood at AZN525mn at end-December. 

Related Articles

IMF says Azerbaijan’s banking sector stronger but systemic vulnerabilities persist

The International Monetary Fund (IMF) has concluded that Azerbaijan’s financial system has made considerable progress in strengthening resilience since the 2015 oil price shock and 2020 COVID-19 ... more

Azerbaijan’s banking sector assets reach AZN27.88bn with a 2.55% NPL ratio in March 2025

The Azerbaijani banking sector has demonstrated remarkable resilience and steady growth in recent years, despite global economic challenges, according to the latest central bank ... more

Azerbaijani banks report mixed financial performance in Q1 2025

Azerbaijan’s leading commercial banks released their financial results for the first quarter of 2025, showing a mixed performance in profitability, digitalisation, credit growth and capital ... more

Dismiss