BANK RESPUBLIKA STRENGTHENING POSITIONS IN BANKING MARKET OF THE COUNTRY

 

The rapid development of Azerbaijan's economy calls for sustainable progress and reinforcement of banking sector in the country. Azerbaijan's banking sector is progressing rapidly in respect to both quality and figures.

 One of the most outstanding banks in this sector of economy, both with regard to development dynamics and its position in the market, is Bank Respublika.  

Bank Respublika started its operations on May 22, 1992 based on a license issued by the National Bank of Azerbaijan Republic. It has become one of Azerbaijan's leading banks over that period due to its efficient activity.

The bank's shareholders include 2 largest financial institutions of Germany: Investment Company DEG, a member of KfW banking group, and Sparkassen International Development Trust, a member of financial group Sparkassen-Finanzgruppe, which have owned a "25%+1 share" stock of Bank Respublika since April 28, 2005.

The fact that Bank Respublika's shareholders include Germany's largest financial institutions, on one hand, evidences the international confidence in the bank, and, on the other hand, creates a whole world of new opportunities for the bank's further development.

At present Bank Respublika offers a broad range of modern banking services including cash and settlement services, various consumer and business loans, deposits, plastic cards, money transfers, documentary transaction, travel checks, personal safekeeping boxes, remote customer services, etc.

Bank Respublika builds relations with clients based on the principle of being as helpful and useful to clients as possible, which is reflected both in the bank's slogan - "Sizə faydalı" (Beneficial for you), and in specific actions and services. One of the main tasks is to continually improve the quality of customer service, expand the range of services and optimize their terms and conditions.

The bank's clientele includes a great number of companies and institutions from different economic sectors, such as industry, telecommunications, transport, construction, agriculture, trade and services. The bank's services are also used by tens of thousands of individual clients.

Bank Respublika closely cooperates with international and foreign financial institutions primarily aiming at implementing different enterprise and trade finance lending programs. Overall, under these programs Bank Respublika acquired lines of credit for over 70 mil USD, which enhanced the Bank's capabilities for providing clients with long-term business loans and trade finance services on more favorable terms.

The following financial institutions should be particularly mentioned: European Bank for Reconstruction and Development (EBRD) - 12.7 mil USD, Netherlands Development Finance Company (FMO) - 12 mil USD, German Investment Company DEG - 10 mil USD, Asian Development Bank - 8 mil USD, International Financial Corporation - 6 mil USD, Bankgesellschaft Berlin - 5 mil USD, Black Sea Trade and Development Bank - 2.3 mil EUR, German Azeri Fund - 2 mil EUR, Raiffeisen - 2 mil USD, Commerzbank - 1 mil USD and others.

Bank Respublika also cooperates with the National Fund for Support to Entrepreneurship and Azerbaijan Mortgage Fund by getting actively involved in the government's enterprise lending and mortgage lending programs.

The higher priority for Bank Respublika is extension of activities in the corporate bonds market. Last year Bank Respublika twice issued its bonds in total amount of 3 mil manat (3.5 mil USD) purchased by two foreign companies.

 To boost its activities in the corporate bonds market, Bank Respublika performs as a general sponsor of "CIS Bond Congress - 2007" to be organized by CBONDS News Agency and take place June 28-29 in Baku, Azerbaijan.

One more achievement of Bank Respublika is receipt of ratings from Moody's International Service. On December, 2006, Bank Respublika received long-term B2 rating for deposits in national and foreign currency and short-term NP rating for deposits in national and foreign currency. All ratings carry "stable" outlook.

Bank Respublika is one of the first banks of Azerbaijan to receive an international rating and the received ratings are the highest in the private bank sector of Azerbaijan.

Bank Respublika is also a member of international payment systems MasterCard International and VISA International. In 2006 Bank Respublika became a principal member of MasterCard International payment system it had cooperated with since 2003 as an associate member.

The status change decision made by Board of Directors with MasterCard International displayed the result of Bank Respublika's achievements to have issued over 13,000 plastic cards of this system. New status also enables Bank Respublika to be a sponsor of other Azerbaijan's banks when they join MasterCard International as associate members.

Bank Respublika also intends to raise its status within VISA International Payment System. It became an associate member of this organization in 2006 and one of first banks in Azerbaijan to have launched emission of chip plastic cards. 

It is noteworthy that plastic card services are really outstanding among those the bank provides individual clients. Unlike other banks, Bank Respublika offers its clients MasterCard and VISA international cards for free and at zero maintenance fee. Holders of Bank Respublika's cards may also benefit from the opportunity to obtain an interest-free credit of up to 5,000 manat, USD or Euro for the period of up to 35 days. In general, Bank Respublika has issued 17,000 cards of MasterCard International and VISA International systems so far.

Bank Respublika has also built correspondent relations with different local and foreign banks. Among the foreign entities are American Express Bank, Commerzbank, Dresdner Bank, Wachovia Bank, Deposit Bank of the Russian Federation, Alpha-Bank, European Trust Bank, Russian Slavic Bank, Impexbank, Promsvyazbank, Privatbank and Parexbank.

Broad correspondent relations with leading local and foreign banks enable Bank Respublika to make fast and efficient payments and money transfers to any point of the world.

The Bank is also connected to urgent money transfer systems Western Union, Travelex Money Transfer, Contact, Migom, PrivatMoney, Bistraya Pochta and Xpress Money. It also works to get connected to two more systems of urgent money transfer.

 Connection to various urgent money transfer systems, broad service network and Ofis24 running in 24x7 mode made the Bank one of leading banks in this sector as well.

One of most unique products of the bank is "Freedom of Deposit Terms Choice", where clients are free to customize all deposit parameters. Any combination of selected terms is possible, creating a unique type of deposit built upon customer's specific needs and requests.

Too, Bank Respublika is actively arranging prize campaigns among its customers-holder of plastic cards and depositors. Dozens of clients of the Bank won various prizes within these campaigns.

Bank Respublika is also offering its customers distant banking services, such as Internet-Bank, Client-Bank and Home-Banking.

Internet-Bank service is a distant banking service technology enabling the customer to overview account balances and receipts without visiting the bank.

Client-Bank service is a distant banking service program that enables the customer manage money on his account, make payments and other operations without attending the bank, through a kind of ‘paperless' technology.

Home-Banking is an additional service enabling the customer overview his card account and make various payments via the Internet from his home or office.

An important aspect of the Bank's activity is its active participation in various associations. Bank Respublika is a member of the Board of the Azerbaijan Bank Association, National Confederation of Entrepreneurs of Azerbaijan, American Chamber of Commerce in Azerbaijan (AmCham), German-Azeri Economic Cooperation Foundation (DAWF), Caspian Integration Business Club (CIBC) and so on. Thus, Bank Respublika, as one of Azerbaijan's leading banks, is ever extending and strengthening its relations with various international organizations.

One of the priorities for the Bank is expanding the geography of its operations and network of customer service that currently includes 12 branches, 7 service points and 16 ATMs in Baku, Ganja, Sumgayit, Guba, Khachmaz, Lenkoran, Yevlakh, Barda, Shamkir and Goychay.

In 2006 Bank Respublika extended its customer care network by opening new offices:  2 branches and 4 service points. Three more service points were opened up in January 2007. Bank Respublika is planning further extension of branch network across the regions of the country.

Bank Respublika is the only bank in Azerbaijan that provides 24-hour uninterrupted service to individual customers seven days a week under the Ofis24 project. This project was implemented in accordance with Bank's concept of maximum use to the clients and for the customers unable to visit the bank at working hours.

In 2006 Bank Respublika introduced Azerbaijan's first banking inquiry service "Call Bank 144", which allows a customer obtain details information about banking services by dialing 3-digit number 144.

One more indicator of the Bank's good operation is the dynamical growth of its figures. The Bank's credit portfolio jumped in 2.3 times over the past year and amounted to over 76 million manat.

Customers' deposits in 2006 also displayed a 2.3 times growth and reached 51.9 mil manat. Fixed deposits amounted to 26.6 mil manat. The total capital of Bank Respublika as of January 1, 2007 amounted to 12.3 million manat. By the results of 2006 Bank's revenues amounted to 14.1 mln manat, expenses to 11.2 mln manat and balance sheet profit to 2.9 mln manat.

As of February 1, 2007, the Bank's total capital exceeded AZN 13,7 mil (USD 15,7 mil) and total assets reached AZN 119,1 mil (USD 137,0 mil).

Thus, being one of Azerbaijan's leading banks, Bank Respublika further strengthens its positions on the country's banking market.

 

The ceremony of signing the $10mln agreement between Bank Respublika and FMO of the Netherlands.