Cause of loss of PASHA Bank subsidiary in Georgia disclosed


October 8, Fineko/abc.az. The net loss of the Georgia-based subsidiary of PASHA Bank for the 1st half of 2019 is linked with the hiring of new employees.

ABC.AZ reports that such a statement was made by PASHA Bank’s board member and chief financial administrator Bakhruz Nagiyev, when commenting on Bank’s financial performance for the 1st half of 2019.

He noted that PASHA Bank Georgia is trying to increase the market share. Therefore, in the 1st half of 2019 the banks hired an additional 188 employees.

"Due to the growth of wage costs, our subsidiary bank suffered losses. But now the task of the new team is to increase revenues by increasing the portfolio," Bank’s rep emphasized.

In the same term of this year PASHA Bank Georgia experienced net loss of AZN 2.298 versus the 1st half of 2018. In addition, Bank’s total capital decreased by 17% compared with the 1st half of 2018 and amounted to AZN 63.26 million. In the 1st half of 2018 this figure reached AZN 75.959 million.

By Elmir Murad