On 13 March the State
Committee for Securities (Qiymətli Kağızlar üzrə Dövlət Komitəsi – QKDK) registered
a prospectus for the issuance of new stock by Dekabank (“Dekabank” KB ASC). In issue number AZ1004005398 the bank is
entitled to issue up to 47,970 shares of ordinary stock with a par value of AZN
500 (€ 489) each, and in issue number AZ1004005399 the bank is entitled to
issue up to 47,970 convertible ordinary shares
with a par value of AZN 279.7 (€ 274) each.
The bank’s share capital is currently 13,417,209 AZN, consisting of
47,970 ordinary shares of AZN 279.7 each.
(1 EUR = 1.022 AZN as of 15 March 2013 .)
In an earlier
action, on 4 March the QKDK registered a prospectus for the issuance of
ordinary stock by Turanbank (“Turanbank” ASC).
The prospectus was assigned the registration number AZ1002005549, and it
permits Turanbank to issue up to 9,243 shares of ordinary stock with a par
value of AZN 1,082 (€ 1,059). Full
placement of the issue would increase the bank’s share capital by 33%, from AZN
30,000,614 to AZN 40,001,540 (€ 39.1 mln).
Sources:
Mart
ayında QKDK tərəfindən aşağıdakı şirkətlərin qiymətli kağızlar buraxılışı
qeydiyyata alınmışdır (2013-03-13)
«
Turanbank » ASC-nin səhmlərinin yeni emissiyası (2012-10-09, updated
2013-03-06)
On 14 March the commercial bank PAŞA Bank (“Paşabank”
ASC) held a press conference at Baku’s Four Seasons Hotel to report the bank’s
results for 2012. Some highlights are
given below. (1 EUR = 1.0377 AZN as of 31 Dec. 2012.)
Income:
· Net profit for 2012 was AZN 16,211,544 (€
15.62 mln), up 21.4% from the result of AZN 13,359,000 for 2011.
· ROA: 3.84% in 2012, up from 3.40% in
2011.
· ROE: 17.62% in 2012, up from 15.80% in
2011.
Assets:
· Total assets increased 25.6%, from AZN
573,879,801 to AZN 721,074,710 (€ 695 mln).
· Total loans increased 16.8%, from AZN
235,504,000 to AZN 275,141,000 (€ 265 mln).
· Total impaired loans at end-2012 were
AZN 26,461,000, up from AZN 14,278,000 at end-2011. Most of this increase was in impaired
corporate loans, which in 2012 increased 87.1%, from AZN 13,836,000 to AZN
25,891,000.
· Available-for-sale investment securities
held by the bank increased 54.7% in 2012, from AZN 209,307,000 to AZN
323,699,000 (€ 312 mln).
Liabilities:
· Total deposits increased 26.6%, from AZN
385,606,000 to AZN 488,002,000 (€ 470 mln).
PAŞA Bank is owned 60% by PASHA Holding Ltd., 30% by Ador
Ltd., and 10% by Mr. Arif Pashayev. The
bank is effectively controlled by Mr. Pashayev.
The bank’s auditor is Ernst & Young Holdings (CIS)
B.V. (Ernst & Yanq Holdinqs (SiAyEs) Bi.Vi.).
Sources:
Bakıda PAŞA Bankın
2012-ci il üzrə fəaliyyət nəticələrinə həsr olunmuş mətbuat konfransı keçirildi
(2013-03-14)
Audited,
consolidated financial statements for 2012: 31
dekabr 2012-ci il tarixinə müstəgil auditorların hesabatı (2013-03-11)
Shareholders:
Səhmdarlar
Summary of
2011 results: PAŞA
Bankın 2011-ci ilin nəticələri üzrə maliyyə göstəriciləri nəşr edildi
(2012-03-30)
In other news, on 12 March a mission of the
International Monetary Fund concluded a visit to Azerbaijan and issued a
concluding statement in Baku. Below are
reproduced verbatim the sections of the statement that deal with the banking
sector.
[…]
Recent Economic
Developments and Outlook
[…]
9. The
ongoing capitalization process and ensuing consolidation should be used to
create a more viable and competitive banking sector and promote diversification. The financial sector
should be strengthened to support economic diversification as it is not
sufficiently deep and efficient. Ongoing CBA initiatives to strengthen
corporate governance regulations, risk management practices (requiring
certified risk managers), and prudential regulations to contain consumer
lending are well placed. Such initiatives should be supplemented with
strengthened supervisory safeguards in line with international best practice to
ensure the accurate classification of non-performing loans, with proper
loan-loss provisioning. Approving a time-bound action plan to guide, in
particular, the processes of capitalization, recording of NPLs, and potential
merger and acquisitions will be crucial to contain risks in the system.
10.
The largest bank, IBA, has an unviable business model and needs major
restructuring to be able to support the real sector. IBA faces heavy risks
ranging from large projects under construction to agricultural development that
are not properly assessed and cannot be funded by short-term deposits. An
unreformed IBA would undermine the stability and efficiency of the banking
system and result in high costs for the shareholders, including the government.
The restructuring of the IBA operations and its governance structure should
follow internationally accepted principles to pave the way for the downsizing
and transparent privatization of the bank in due course. Therefore, a
diagnostic assessment of IBA should be undertaken by a reputable international
institution or company, and external borrowing by this bank should be contained
until a viable business model is in place.
11.
Efforts to strengthen capital markets with the support of the World Bank will
facilitate the financing of companies in the non-oil sector. We welcome plans to
develop the legal framework, infrastructure, and instruments for savers and
investors. Though the recent expansion of the corporate bond market could help
deepen the capital market, the authorities need to strengthen the consolidated
supervision of banks and its brokerage subsidiaries, and develop an appropriate
credit infrastructure—in particular through enforcement of contracts, effective
recovery of collateral, and a private credit bureau. The recent change in the
Commercial Secrets Law, discouraging the disclosure of shareholders of
companies, including banks, should be reversed and the law brought into line
with international disclosure principles.
[…]
Source:
Republic of Azerbaijan
— Concluding Statement of the 2013 Article IV Consultation Mission (2013-03-12)
Mark Pleas
[contact]
