OREANDA-NEWS. January 22, 2010. Balance profit of Bank Respublika totals AZN 8 million in 2009. The bank informed that following the results of activity for 2009, assets of BR made AZN 347.9 million, decreased by 10.3 % as compared to figures for the beginning of 2009.

“Decrease of assets  is connected with reduction of balance of loan portfolio (AZN 196.6 million) in connection with conservative policy of crediting and risk management. The share of loan portfolio in structure of assets of the bank makes 56.5 %,” it was informed.

Assumed preventive anti-crisis measures enabled not only retaining market share on depositary portfolio, but also increasing it.

“Over 2009 the volume of funds in the clients’ accounts in BR increased by 19.5 % and exceeded AZN 162.3 million. Individuals’ funds in BR increased by 41 %, amounted to AZN 112 million. Thus, for reporting date the volume of the population’s  deposits increased by 47.3% and made AZN 94.5 million against AZN 64.2 million for the beginning of 2009,” it was informed.

In 2009, the bank paid special attention to support of high liquidity to ensure fulfillment of obligations in due time for the bank’s clients and the international financial organizations.

BR also strengthened the capital base. Supervisory Board made decision to increase charter capital of the bank by 35.4%, the charter capital made AZN 30.6 million on 1 January, 2010. Over 2009 total capital of the bank amounted to AZN 55.5 million, demonstrated growth by 28.2 %.

“Stable growth of revenue from primary activity reflects results of work of the bank during the accounting period. Following the results of activity for 2009, profit of BR  totaled AZN  54.9 million with expenditures in the amount of AZN 46.9 million. Balance profit of the bank for the accounting period equals to AZN 8 million,” it was informed.

BR introduces successfully new technologies to expand efficiency of the operations and quality of service. During accounting year the bank finished work on transition to new licensed software FlexCube, which is used widely in the international practice of bank service. Opportunities of the program, prepared by experts of Oracle Financial Services Software Limited corporation simplify carried out operations, providing fast client servicing.

BR for the last year expanded branch network and opened 6 new regional branches in Mingachavir, Sheki, Masalli, Jalilabad, Imishli and Zagatala cities. New branches will promote development of private sector and expansion of bank services in the country’s regions.

At the beginning of 2009, BR connected to payment system of municipal payments, which enables subscribers to pay for consumption of energy, gas and water in one bank.

BP also connected to new system of “Gold crown” urgent money transfers.

In  conditions when the international capital markets were closed for the majority of the country’s banks, BR continued successfully cooperating  with the international financial organizations on attraction of credit lines to finance private sector.

In 2009, the bank attracted from the International Financial Corporation (IFC) USD 20 million for crediting of small and middle-sized business and USD 6 million from the European Bank for Reconstruction and Development (EBRD) to develop micro and small entrepreneurship.

During the year BR Bank Respublika traditionally carried out a number of  a advantageous campaigns  among clients via plastic cards “Trip to Switzerland” and "”Trip to Spain" and  depositors, the prizes of which were gold bars and Subaru Forester car.

"During the current year BR will pay particular attention to creation to line  of new products and services, accessible to all clients, as well as  improvement of quality of client service,” it was informed.

BR started operating in 1992. Two large financial institutions of Germany – DEG (a member of bank group of KfW) and SIDT (a member of Sparkassen-Finanzgruppe) with package of BR shares at the rate of 25% + 1 share are among its shareholders. The bank has 34 branches and sub-branches in Baku and regions of Azerbaijan.