Azerbaijan, Baku, Dec. 29 / Trend , N.Ismayilova/ A deal with the European Bank for Reconstruction and Development (EBRD) to purchase share in capital at the Azerbaijani Bank of Baku has not bee yet implemented, Jalal Gasimov, chairman of the Board of Bank of Baku, said.
Although the EBRD reached agreement to purchase stakes of Bank of Baku in 2005, the sides could not sign a deal because of change of main shareholders of the bank. Therefore, the Azerbaijani government asked the European Bank to cancel negotiations, until these problems will be solved. The EBRD expressed its readiness to purchase 25%-1% package of stakes, whilst so far, this deal has not been yet implemented. Moreover, the European Bank will not refuse to join capital of Bank of Baku under any condition, the EBRD Baku Office said earlier.
At present the bank continues cooperating with the financial institution under a loan line.
Generally, Bank of Baku finished 2008 with the best qualitative and quantitative indicators (the highest indicator on recurrency of capital and assets at banking market).
"We strengthened institutional mechanism of management and introduced new methods to assess risks in 2008, the head of the bank said. In 2009, we will seek to improve quality of service of clients and optimization of business processes, as well as to improve our market position both in consumer loaning, where we are traditionally powerful, and in loaning of corporate clients, to which recently we have paid more attention."
Skilful and efficient management of the bank becomes more difficult task year by year, because competition strengthens, as well as macro and micro market situation changes, he said.
While developing plans, strategy and tariff policy for 2009, the bank takes into consideration the current situation at world financial market and dynamic of its development; macroeconomic situation in the country and forecasts on economic indicators for next year; change of stage of clients' risks from this or other industry; change of cost and duration of the drawn means; expected changes in demand for banking services, including for loaning of these of other products or fields of economy, as well as expected conduct of rival-banks.
Bank of Baku was established in 2005 as a result of merger of two local private banks. Assets of Bank of Baku made up AZN 187.6mln and income - AZN 9.5mln early Dec. Deposit portfolio of the bank reached AZN 139.9mln, loan portfolio - AZN 139.2mln, including AZN 52.4mln of commercial loans and AZN 86.7mln of consumer loans. ROA (return on assets) factor of the bank amounted to 6.17% and ROE (return on equity) factor - 39.76% early Dec.
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