Financial Statements Baku, Azerbaijan 30 June 2017 Results for the - - PowerPoint PPT Presentation

Financial Statements

Baku, Azerbaijan 30 June 2017

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• From the end of 2016, assets have decreased by 2.4% or by 6,737K manats, totaling 280 million manats in the

second quarter of 2017.

• The main reasons of change:
• As a result of several substantial loans repayments, by the end of 2017,Q2 loan portfolio compiled 168K manats.
• Additionally, due to liquidity surplus and for more effective financial management bank retrieved deposits of banks and other FIs.

Therefore, bank's liabilities decreased by 9,216K manats in the second quarter of 2017.

• .
• The bank ended the second quarter with a profit of 1,780K manats. In addition, bank finished 2016 year with a profit
• f 439K manat.
• It should be emphasized that the bank's capital increased by 1% or 1,649K manat since the beginning of the year reaching

143,681K manats by the end of the second quarter of 2017. With capital adequacy ratio of 41.9% (min. 10% requirement) Expressbank continued to be first in the market on this indicator.

• Current liquidity ratio constituted 80.4% (min. 30% requirement).
• Leverage ratio was 46.4% (min. 5% requirement).

Results for the second quarter of 2017

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thousand manats ASSETS 31/12/2016 31/03/2017 30/06/2017 Cash and cash equivalents 42,905 72,210 65,508 Investment securities available-for-sale 1,022 4,484 2,919 Loans to customers 199,320 171,949 167,864 Specific reserves (5,082) (3,265) (3,942) Fixed assets less depreciation 12,471 11,382 10,463 Intangible assets less amortization 3,377 3,299 3,256 Other assets 32,808 30,565 34,016 TOTAL ASSETS 286,822 290,626 280,085 LIABILITIES Amounts due to customers 92,690 97,863 106,772 Amounts due to banks and other FIs 20,623 19,080 15,449 Loans from banks 15,936 15,520

• Loans from other FIs

7,198 7,838 9,036 Other liabilities 8,342 5,319 5,147 TOTAL LIABILITIES 144,789 145,620 136,404 EQUITY Equity capital 138,350 140,986 140,129 Including, current year's profit 439 2,636 1,780 General reserves 3,683 4,021 3,552 TOTAL EQUITY 142,032 145,007 143,681 EQUITY AND LIABILITIES 286,822 290,626 280,085

286,822 290,626 280,085

31/12/2016 31/03/2017 30/06/2017

Total Assets (thousand manats)

144,789 145,620 136,404

31/12/2016 31/03/2017 30/06/2017

Total Liabilities (thousand manats)

Statement of Financial Position

Statement of Profit or Loss

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30/06/2017 CIR 87.1% 31/03/2017 CIR 68.5% 31/12/2016 CIR 98.1% 30/06/2017 NPM 20.3% 31/03/2017 NPM 48.5% 31/12/2016 NPM 3.1% 30/06/2017 ROCE 1.2% 31/03/2017 ROCE 1.9% 31/12/2016 ROCE 0.3%

• CIR – cost-to-income ratio
• NPM – net profit margin ratio
• ROCE – return on capital employed

thousand manats 31/12/2016 31/03/2017 30/06/2017 Interest income 36,957 6,701 12,947 Interest expense (9,430) (1,732) (3,221) Net interest income before provision for impairment o 27,527 4,968 9,726 Provision for impairment on interest bearing assets (13,440) 465 (952) Net interest income 14,087 5,433 8,775 Operating income 11,623 3,957 7,386 Operating expense (2,890) (1,101) (2,425) Net operating income 8,733 2,856 4,962 General and Administrative expenses (22,712) (5,731) (11,983) Net of foreign exchange translation 331 78 27 Income before tax 439 2,636 1,780 Income tax

• Net income

439 2,636 1,780

Statement of Cash Flow

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thousand manats 31/12/2016 31/03/2017 30/06/2017 Cash flow from operating activities 4,020 2,138 363 Interest income 24,065 9,255 12,526 Interest expense (10,464) (5,401) (7,452) Realized gains less losses from dealing in foreign currencies 5,730 2,119 3,307 Fees and commisions received/(paid) 3,003 736 1,654 Wages and benefits (10,127) (2,640) (5,483) Administrative expenses (8,187) (1,931) (4,190) Deacrease/(increase) in operating assets 67,836 17,761 24,943 Deacrease/(increase) in operating liabilities (43,975) 4,982 (4,533) Changes in other assets and liabilities (673) 3,525 4,403 Net cash flows from operating activities 27,207 28,407 20,366 Cash flow from investing activities (3,601) (5,679) (4,326) Net of sale/(purchase) of securities

• (3,463) (1,898)

Sale/(purchase) of fixed assets (2,969) (1,876) (2,118) Sale/(purchase) of intangible assets (632) (341) (311) Cash flow from financing activities 298

• (15)

Dividends paid

• -

Changes in total equity 298

• (15)

Net of foreign exchange traslation 331 78 27 Cash and cash equivalents, ending 42,905 72,210 65,508

Statement of Changes in Equity

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thousand manats

Openning balance Changes during the period Closing balance Ordinary shares 137,257

• 137,257

Retained earnings 1,093 1,780 2,872 Net profit/(loss) of the previous years 1,093

• 1,093

Net profit/(loss) of the current year

• 1,780

1,780 General reserves 2,266 1,285 3,552 general reserves on loans and interbank accounts 1,594 705 2,298 general reserves on other assets

• 596

596 revaluation of fixed assets 673 (15) 657 Total equity 140,616 3,065 143,681 30/06/2017

Capital

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48% 36% 39% 35% 39% 42% 31/12/2016 31/03/2017 30/06/2017

Capital adequacy ratio

Tier I Total CAR 135 135 135 138 141 140 31/12/2016 31/03/2017 30/06/2017

Capital Structure (mln. manats)

Tier I capital Total capital 278 251 231 31/12/2016 31/03/2017 30/06/2017

Risk-weighted Assets (mln. manats)

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14,801 653 439 2,636 1,780 2014 2015 2016 2017,Q1 2017,Q2

Net Profit (thousand manats)

Financial indicators

31/12/2016 ROA 0.15% ROE 0.32% Leverage 32% 31/03/2017 ROA 0.91% ROE 1.87% Leverage 33% 30/06/2017 ROA 0.64% ROE 1.27% Leverage 46%

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Currency structure

198,862 187,425 188,175 87,960 103,201 91,910 Dekabr 16 Mar 17 Jun 17

Assets (thousand manats)

AZN FX 53,064 43,035 45,408 91,725 102,584 90,996 Dekabr 16 Mar 17 Jun 17

Liabilities (thousand manats)

AZN FX 23,227 16,259 24,130 69,463 81,604 82,642 Dekabr 16 Mar 17 Jun 17

Deposit portfolio (thousand manats)

AZN FX 138,942 132,596 133,290 60,378 39,353 34,574 Dekabr 16 Mar 17 Jun 17

Loan portfolio (thousand manats)

AZN FX

10 Loan portfolio December 16 % March 17 % June 17 % Individuals 84,694 42% 82,275 48% 72,132 43% Legal 114,626 58% 89,674 52% 95,732 57% Total 199,320 100% 171,949 100% 167,864 100% NPL 3,609 4,566 6,146 % 1.8% 2.7% 3.7% Deposit portfolio December 16 % March 17 % June 17 % Individuals - Term 60,368 65% 55,329 57% 50,107 47% Individuals - Demand 10,915 12% 8,208 8% 11,286 11% Legal - Term

• 0%
• 0%
• 0%

Legal - Demand 21,407 23% 34,326 35% 45,378 43% Total 92,690 100% 97,863 100% 106,772 100%

Loan and deposit portfolios

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Loan portfolio

Individuals, 72,132, 43% Manufacturing, 47,628, 28% Construction, 44,835, 27% Trade and Services, 1,724, 1% Agriculture and food processing, 1,527, 1%

By sectors (thousand manats) as of 30 June 2017

84,694 85,083 81,398 82,275 74,396 72,516 72,132 114,626 116,468 112,055 89,674 90,804 96,063 95,732

Dek 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17

Loan portfolio (thousand manats)

Individual Legal

Deposit portfolio

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Individuals, 61,393, 58% Energy, 40,715, 39% Trade, 1,767, 2% Transport, 857, 1% Other, 22, 0%

By sectors (thousand manats) as of 30 June 2017

71,283 72,515 67,746 63,537 63,922 60,330 61,393 21,407 25,824 33,589 34,326 33,352 34,293 45,379

Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17

Deposit portfolio (thousand manats)

Individuals Legal