Baku, Fineko / abc.az. The general meeting of shareholders of the International Bank of Azerbaijan OJSC held on 20 July 2010 under the chairmanship of finance minister Samir Sharifov made decisions on three issues - the approval of IBA’s financial statements for 2009 submitted by exterior auditor and recommended by the Bank’s Audit Committee, and profit for 2009, dividend policy and the membership of the IBA Audit Committee.

According to the Bank, financial statements for 2009 were approved by the decision of the general meeting. In 2009, net profit amounted to 128 million manats. The Bank spent 46.7 million manats on payment of dividends in the 1st and 2nd quarters of 2009, while in the 3rd quarter in compliance with the shareholders’ relevant decision it directed 40 million manats of profit designed for these ends for IBA’s equity capital.

The last quarter of 2009 and the first two quarters of 2010 were completed by the IBA with profit.

In accord with the requirements of the legislation a decision on profit distribution and payment of dividends was carried out at discretion of the shareholders.

As for the second issue, the meeting participant shareholders whose overall share in the total number of Bank’s shares was 80%, voted in their majority (66%), including representatives of the Ministry of Finance, for the payment of dividends following the year, not as it was done before by quarters, and considered the matter of their next payment in 2011. 34% of the meeting participants voted against this decision.

According to the decision taken on the third issue of the meeting agenda, the membership of the IBA Audit Committee was reduced to 5 persons. It should be noted that previously, at an extraordinary general meeting of shareholders on 19 October 2009, guided by the necessity to toughen control over the management under conditions of significant growth of assets, expansion of activity directions, increase of the number of subsidiaries and representative offices, branch network development, the quantity of Audit Committee’s members was increased from 3 to 7 in accord with the relevant proposal of the Ministry of Finance.

Today, the IBA is the most capitalized bank in the country: its charter capital reaches 240 million manats. As of 1 July 2010, Bank’s balance capital totaled 627.7 million manats. Over the 1st half of 2010 the IBA transferred 22 million manats of various taxes to the budget of Azerbaijan.

For the last 6 months country’s only state-governed IBA’s revenues exceeded 189 million manats.

Bank’ profit before taxes amounted to 41.4 million manats and net profit – 31.5 million manats.

Thus, the IBA honorably implemented its commitments to the shareholders and ensured profitable work that serves as basis for the distribution of dividends.

It is important to underline that long-term issuer default rating (IDR) in foreign currency assigned to the IBA by authoritative international rating agency Fitch Rating was raised from the level ‘BB+’ to investment ‘BBB-‘. This estimate conforms to long-term IDR of Azerbaijan.

IBA’s rating in foreign assigned by international rating agency Moody’s Investors Service was similar to the rating of Azerbaijan, and in the national currency exceeded its level conforming to the country’s one by two stages.

After Moody’s changed methodology for ratings, ratings of banks, exceeding sovereign ratings of countries where they operate were reduced around the world. And in accordance with the new rules, rating level for the IBA was defined in national currency Baa3, which is currently one step ahead of the corresponding rating of Azerbaijan.

23.07.2010 12:09