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

Fire breaks out in Baku’s former Trump Tower

At least four people were injured in a fire that broke out in the 33-storey former Trump Tower in Baku on April 28.  The building was originally planned as a Trump Tower, but never opened ... more

Azerbaijani parliament appoints new PM

The parliament of Azerbaijan on April 21 appointed Novruz Mamedov as the country’s new prime minister. Mamedov has served as a foreign policy assistant to Azerbaijan’s president, Ilham Aliyev, ... more

Armenia, Azerbaijan and Georgia enjoying Persian new year influx of Iranians

Armenia, Azerbaijan and Georgia are enjoying a welcome injection of revenues from the annual influx of Iranians enjoying their long Nowruz Persian new year holiday. Anecdotal evidence indicates ... more