1 1 iba: stable growth in challenging environment emil mustafayev first deputy chairman 20.01.2009,...
TRANSCRIPT
11
IBA: Stable Growth in Challenging Environment
Emil MustafayevFirst Deputy Chairman
IBA: Stable Growth in Challenging Environment
Emil MustafayevFirst Deputy Chairman
20.01.2009, Vienna20.01.2009, Vienna
2
Azerbaijan – safe harbor for investmentAzerbaijan – safe harbor for investment
Working economy and stable financial system
Sufficient national reserves
Immunity of a small economy
Fitch (BB+) and Moody’s (Ba1) confirmed ratings at
previous levels; recently received a new one from S&P
(BB+)
Low level of foreign indebtness and their timely servicing
Healthy slow down of rapid economic growth and
reduction in inflation
Development of entrepreneurial culture
3
Measures Taken By Azerbaijan StateMeasures Taken By Azerbaijan State
Reduce key refinancing rate
Increase liquidity by reducing mandatory reserve
requirements National Bank provides loans to commercial banks
Intention of government to allocate funds from State Oil
Fund to commercial banks
Continue investments into infrastructural projects
Support real economy, financial sector SME, agriculture,
construction
4
IBA – Core of the Azeri Banking SystemIBA – Core of the Azeri Banking System
Stable performance and growing customer base
Largest creditor of the national economy
Recently confirmed ratings from Fitch at BB+ and
Moody’s at Baa2
Dominate position in the banking system
Well diversified asset base
Strong shareholder support
Trust of customers and investors
Wide branch network and international presence
5
IBA’s Asset Structure and QualityIBA’s Asset Structure and Quality
5
Loan Portfolio DiversificationLoan Portfolio Diversification
Foreign Currency
75%
AZN25%
Agriculture6,0%Transport &
communic.10,0%
Trade and Services26,0%
Iindividuals11,0%
Construction10,0%
Manufacturing10,0%
Oil & energy27,0%
Assets – Currency StructureAssets – Currency Structure
109
87
67 7
2003 2004 2005 2006 2007 2008 2009(forecast)
Non-Performing Loans (NPL)Non-Performing Loans (NPL)Assets Growth in August-December 2008Assets Growth in August-December 2008
4 150
4 3004 400
4 4734 600
Aug Sep Oct Nov Dec
6
IBA’s Assets DynamicsIBA’s Assets Dynamics
6
Strong Loan Portfolio and Assets Growth (in USD millions)Strong Loan Portfolio and Assets Growth (in USD millions)
440 510882
1 258
2 120
3 208
4 6005 000
3 250
2 8002 408
1 192739
415203219
2002 2003 2004 2005 2006 2007 2008 2009(Forecast)
Total assets Loan portfolio
7
IBA’s Liabilities – Funding MixIBA’s Liabilities – Funding Mix
Due to fin. instit.9%
Corporates41%
Retail14%
Other borrowed
funds28%
Subordinated Debt3%
Equity8%
Other3%
Repayment of foreign totaling almost 600 mln. USD
Freed up 225 mln. USD as a result of reduction of mandatory reserve by NBA
Consistently growing deposit base even during August – December
8
IBA’s Liabilities DynamicsIBA’s Liabilities Dynamics
Customer Accounts (USD millions)Customer Accounts (USD millions)
8
76 110 167 179 266461
634780
313 309589
810
1 231
1 728 1 8602 050
2002 2003 2004 2005 2006 2007 2008 2009(Forecast)
Retail Corporates
9
IBA’s Shareholders Equity DynamicsIBA’s Shareholders Equity Dynamics
9
Total Equity and Share Capital (USD millions)Total Equity and Share Capital (USD millions)
27 36 5491
162
287
382
469
7 10 20 2768
118
236 250
2002 2003 2004 2005 2006 2007 2008 2009(forecast)
Total Equity Share Capital
**
10
IBA’s Capital Adequacy and Ownership StructureIBA’s Capital Adequacy and Ownership Structure
10
IBA’s main shareholder is Azerbaijan Republic Ministry of Finance (50.2%)
In order to increase its capitalization, IBA has undertaken 4 large emissions in the last 6 years
IBA's Employees
5,7%
Individuals31,1%
Ministry of Finance50,2%
Legal Entities13,0%
9,4%10,4%
12,8%14,0%
2006 2007 2008 2009(Forecast)
5,2% 5,1%
6,9%8,0%
2006 2007 2008 2009(Forecast)
Tier 1Tier 1 Total CARTotal CAR
Shareholders structureShareholders structure Last emissionsLast emissions
11
IBA’s Financial PerformanceIBA’s Financial Performance
11
Income Growth (USD millions)Income Growth (USD millions)
Operating Income Growth (USD millions)Operating Income Growth (USD millions)
77
137
215257
295
2005 2006 2007 2008 2009(Forecast)
85124
219
286330
64105
146120
150
2005 2006 2007 2008 2009(Forecast)
Interest income Non-interest income
**
24,4%
34,0%30,0% 32,0% 33,0%
2005 2006 2007 2008 2009(Forecast)
1,8%
2,5%
2,0%
2,5% 2,8%
2005 2006 2007 2008 2009(Forecast)
ROA (Return on Assets)ROA (Return on Assets)
ROE (Return on Equity)ROE (Return on Equity)
1212
International diversificationInternational diversification
Subsidiaries abroad:
IBA – Moscow
IBA- Georgia
IBA – Qatar (planned)
Representative offices abroad:
Frankfurt
London
Luxembourg
Dubai
New-York