international bank of azerbaijan - EEN

Transcrição

INTERNATIONAL BANK OF
AZERBAIJAN
Banking Sector of Azerbaijan
Trends, Challenges and Opportunities
Zaur Mahmudov
Head of Representative Office
IBA Frankfurt
December 2007
International Bank of Azerbaijan
1
Table of Contents
IBA – Goal and Role in the Banking Sector
2
Two pillar System
National Bank of Azerbaijan
The National Bank of Azerbaijan serves as the country's
central bank which pursues a uniform state monetary
policy to ensure the national currency stability.
Commercial banks
Commercial banks are formed as joint-stock companies.
The range of commercial banks activities includes:
deposits, loans, cash and settlement services,
foreign exchange operations and other services
to individuals and legal entities.
Banking system of Azerbaijan
94
Banks - 44
69
420
44
Branches – 420
0
100
200
300
Total number of banks
Bank''s sub-branches
Sub-branches - 69
400
Number of branches
Non-banks credit organizations
2
Non-bank credit
organizations – 94
500
42
44
0
10
20
30
Total number of banks
State-owned banks
Banks with foreign
capital – 20
40
50
Private banks
2
5
Banks with local
capital - 24
13
24
0
5
10
15
20
25
Banks w ith national capital
Under 50% foreign stake
50-100% foreign stake
Foreign bank's branches
30
Dynamics of Growth (Assets and Capital)
Dynamics of assets and capital
4000
3778
3600
Structure of assets
m illio n m a n a t
3200
2800
Stateowned
banks
53%
Private
banks
47%
2400
Consentration of assets
Top 10
banks
79%
3175
Other
banks
21%
2252
Liabilities
2000
1200
800
400
Assets
1675
1600
634
71 563
857
945
762
819
95
126
994
845
1864
1386
289
603
388
149
0
01.01.2001 01.01.2002 01.01.2003 01.01.2004 01.01.2005 01.01.2006 01.01.2007
Capital
Comparative Dynamics of Loans and Deposits
Dynamics of Deposits (%)
120
2004
2005
2006
80
40
0
Azerbaijan
Russia
Turkey
Ukraine
2004
Dynamics of Loans (%)
Kazakhstan Uzbekistan
2005
Georgia
Belarus
2006
120
80
40
0
Azerbaijan
Russia
Turkey
Ukraine
Kazakhstan Uzbekistan
Georgia
Belarus
Comparative Development of Assets to GDP
Dynamics of Assets to GDP (%)
2004
120
2005
2006
80
40
0
Azerbaijan
Russia
Turkey
Ukraine Kazakhstan Uzbekistan Georgia
Belarus
Table of Contents
8
IBA: Competitive Advantages
Extensive branch
network and broad
product range
Sound business strategy,
targeted at delivering
value growth for all
stakeholders and a
consistent diversified
earnings stream
Large and stable
customer base. Strong
and stable credit and
rating history
Effective and efficient
management, risk assessment
and compliance systems
Corporate governance
system in line with the
best international
practices
Significant experience
in international trade
and investment
projects
Implementation and
application of advanced,
modern banking technology
and software
9
Ratings & Awards

In 2006 the Fitch International Rating Agency confirmed the Bank’s long-term rating at the
“BB+“ and Bank’s short-term and individual ratings at “B” and “D/E” level respectively

In 2006 the Moody’s Investors Service international ratings agency has assessed the
Bank’s long-term rating at the level of “Baa2” and short-term rating at “Prime-2”(P-2)

1997 – 2004, 2006 Awarded as the Best Bank in Azerbaijan by Euromoney magazine
2000 – 2004, 2006 Awarded as the Bank of the Year in Azerbaijan by The Banker
magazine

2001 – 2007
Awarded as the Best Bank in the World’s Emerging Markets by
Global
Finance magazine
2007
Became a full member of World Economic Forum’s Community of
Global
Growth Companies
10
10
IBA on the Azerbaijan Banking Market
Assets
Total capital
Other
Banks
59,7%
IBA
24,7%
IBA
40,3%
Other
Banks
75,3%
Profit
IBA
34,4%
Other
Banks
65,6%
Loans
Customer accounts
Other
Banks
60,3%
IBA
39,7%
Other
Banks
50,2%
IBA
49,8%
01.10.2007
Strategy: Innovative Retail and Advanced Corporate Banking
Retail
Retail
Banking
Banking
Growth of IBA’s Client Base

Strong service network – branches / subbranches at majority of locations of the
country

Comprehensive ATM and POS network

Diversified product offering

Strong growth of deposits and loan
portfolio

Number of clients
Corporate
Individual
493440
421 996
273 432
165 402
102 284
Introduction of new products and new
information technologies
57 570
16 148
19 380
22 261
26 806
31 301
46 640
2002
2003
2004
2005
2006
1H2007
Number of Branches and Sub-branches
Corporate
Corporate
Banking
Banking

Relationship with all the large
corporate in the country

Flexible pricing

Advanced financial products

Numerous financial schemes including
lending and investment, plastic card
operations, documentary instruments,
etc.
Branches
141
131
130
34
108
107
104
2002
Total (inc. sub-branches and units)
34
2003
35
2004
35
2005
36
2006
36
1H2007
12
Regional Expansion
¾ IBA’s subsidiary IBA-Moscow started to operate in 2002.
IBA-Moscow has service network (branches) in Moscow, St.Petersburg and Yekaterinburg.
¾ In 2007 registered IBA-Georgia. The equity of IBA-Georgia (USD 7
mln) makes it enter in top 10 Georgian banks in terms of equity. IBAGeorgia is going to take an active part in financing of all trade
relationships between two countries. IBA-Georgia will participate in
financing and servicing large Azerbaijani projects in Georgia
¾ Representative offices in Frankfurt-am-Main and London are also
part of international business of IBA.
IBA opens new Representative office in New York, and planned to
open offices in Dubai, Luxembourg, Kiev, Istanbul
Activities in the international capital markets
¾ Syndicated Term Loan Facility in 2005 – USD 56 mln
¾ Syndicated Term Loan Faclility for IBA-Moscow in 2007 – USD
50 mln
¾ CLN 10 NC5 structure (Sub-Debt) in 2007 – USD 100 mln
¾ In 2008 we plan
¾ Eurobond issue – USD 200 mln
¾ First Securitization (DPR Deal) – USD 200-300 mln
¾ 2 Syndicated Term Loan Facilities – USD 200-300 mln
Table of Contents
15
Trends in Banking System
Assets (in million manats)
Capital (in million manats)
4.000
16.000
3.000
12.000
2.000
8.000
1.000
4.000
0
0
2007
2008
2009
2010
2007
2008
Financial Intermediation - Assets to GDP (%)
60
40
20
0
2007
2008
2009
2010
2009
2010
Challenges in the banking sector
¾
Banking regulation still has some shortcomings
¾
Banking sector as a whole is in need of further consolidation. Too many small banks. Only 7-8 banks
have total assets bigger than USD 100 million. 44 banks is probably too large number for the country
with the population of 8,5 mln. Example of Kazakhstan – 30 banks in a country with 15 mln people
¾
Very low capitalization of the banking system (less than USD 1 billion)
¾
Low corporate governance standards and low transparency
¾
Bank restructuring and privatization is not completed and the national banking sector is
characterized by the large market share of state-owned banks.
¾
Very high growth rate. Some banks grow with 100%-120% each year. Are they able to manage
properly loan growth and assets quality? Do they maintain adequate liquidity? How they finance the
growth?
¾
Foreign big players are showing interest to enter the market (SG, Commerzbank, Citibank, RZB,
VTB, Gazprombank and etc.). Are local banks strong enough to compete with the foreign players?
¾
Does the system accumulate enough confidence, reserves and expertise to overcome possible
challenges coming from global world? Example – liquidity problem in Kazakhstan
Major Reforms and their impact on the future of Banking System
¾ The National Bank will continue its efforts
on deepening the institutional mechanism
of monetary policy and coordinate it with
other directions of economic policy in order
to achieve an aceptable level of inflation level
and preserve stability in the banking system
¾ It is planned to bring the minimum
capital requirements of the banks to the level
of 50 million manats, that should support
further growth of the banking system
and inforce banks to consolidate
¾ The National Bank will continue its
efforts on the development of all segments of
the financial market.
Appliance of the corporate governance
principles in the banking system;
institutional and technological development
of the banking control and enlarging its
potential will be kept on.
¾
Reforms
in the
Azerbaijan
banking system
¾ The National bank is encouraging entrance
of foreign banks into the national banking
system that should increase competition
Opportunities in the banking sector
¾ Mortgage Lending (1%-2% to GDP)
¾ All type of consumer lending (express loans, car loans, cards
business and etc.)
¾ SME‘s financing (appr. 5%-7% to GDP)
¾ Still a lot of space in the room for lending to big corporates
(banks should be more focused on the structured products)
¾ Private Banking/Wealth Management and Assets Management
¾ Project Financing (Structured Trade, Export and Commodity
Finance) – segment where foreign banks have a lot of strengths
Thank you for your kind attention
Any Questions ?
Contact Data:
Zaur Mahmudov
Wilhelm-Leuschner str. 9-11
60329, Frankfurt am Main
Tel: + 49 (0) 69 715 857 69
Fax: + 49 (0) 69 715 886 81
Email: [email protected]