TURANBANK OJSC - 15 YEARS OF SUCCESSFUL OPERATION 

 

All branches of economy in Azerbaijan currently undergo rapid development due to economic reforms implemented throughout the recent years. This progress influenced the macroeconomic indicators in the country. Thus, in 2006 GDP was $20,511,000 million, which is 49.3% higher vs. 2005 ($13,733,700 million). Over the first quarter the country's GDP made $5,950,500 million. Though the major progress in macroeconomic indicators of the country accounts for the oil sector, throughout the recent years the state has assigned high importance to the development of the non-oil sector. Over the recent five years Azerbaijan has appropriated funds from the state budget with the aid of the National Entrepreneurship Support Fund (NESF) to back up business development. At the moment the banking system of Azerbaijan is rapidly developing alongside with national economy.

 

Turanbank OJSC is one of the first banks in Azerbaijan. The bank was set up and obtained the NBA's license No115 in 1992. In connection with the modified form of ownership the bank underwent re-registration and got the license under the same number. In May 2005 the bank changed its legal organizational form and was reregistered as Turanbank Open Joint-Stock Company. During 15 years of its operation in the banking system of Azerbaijan Turanbank OJSC has succeeded to win the trust of people and master international banking standards.

For May 1, 2007, the bank's total assets made $59.4 million. In 2006 the bank benefited $1.57 million as net earnings.  Over the last year the yield of the bank's assets comprised 4%. The overall capital of the bank, for May 1, 2007, made $14.8 million where $10.4 million fall to the paid-in statutory fund of the bank. The credit portfolio holds a special niche in the bank's assets. By late 2006 the credit portfolio of the bank amounted to approximately $38.9 million and to date it has reached $43.1 million.

The structure of the credit portfolio of Turanbank OJSC is as following: Trade - 14.8%; Industrial Production - 27.5%; Construction - 21.8 %; Consumer Loans - 15.9%; Transport Industry - 1.2%; Mortgage Lending - 5%; Agriculture - 11%; other loans - 2.8%.

To ensure dynamic development the bank's leading specialists have drawn up the Strategic Development Plan for 2004-2007 with due account for recommendations of international experts. The core objectives fixed in the Strategic Development Plan are as following:

 

• To become one of the leading corporate banks of the country
• To have the extensive branch network in the country
• To provide high yield and stable earnings
• To improve the competitive status of the bank

 

The bank is a full member of international payment systems such as MasterCard, International, SWIFT, Western Union, etc. The bank is also a member of the Azerbaijan Microfinancing Association and the Baku Interbank Currency Exchange.

At the moment the bank operates 11 branch offices and 8 representative offices in various regions of the country and plans to open 3 more branches before the end of 2007.       

Since 2002 the bank is regularly audited by PriceWaterHouseCoopers and Deloitte & Touch international audit companies.

The bank is a shareholder in Azar-Turk Bank OJSC, Bashak Inam Open Joint Insurance Company, Millikart LLC (Processing Center) and Turanlizing LLC. It is worth to mention that Turanlizing LLC is the bank's subsidiary.

The bank personnel have a long-term experience but, nevertheless, twice a year the employees undergo trainings in such international organizations as USAID, ACDI&VOCA, International Finance Corporation and others.

For 5 years the bank has been participating in various state programmes. The major criterion in its crediting strategy is the crediting of small and medium entrepreneurship, especially in underdeveloped regions of the country. Over 5 years the bank has extended loans to nearly 150 subjects to the sum of $5.5 million from the funds of NESF.

Since 2004 the bank has been the only bank-agent within the Programme on Development of Mountain and Submountain Regions of the country implemented by the International Fund for Agriculture Development.

Turanbank OJSC is one of the banks-agents that have won the tender on North-East Second Programme held in 2007 by IFAD. The total sum of this programme makes $5.0 million. In 2006 Turanbank OJSC became the participant of the Azerbaijan's Mortgage Lending Foundation.

Turanbank OJSC offers the whole range of banking services. The bank enjoys such customers as industrial entities, multi-profile corporations, small and medium corporate clients engaged in production industry, service sector and trade, and private clients as well. In the bank's client base corporate customers play a great role.

Turanbank OJSC has the expanded network of correspondent relations. Our correspondent banks are the leading banks of Austria, Switzerland, Turkey, Russia and Kazakhstan. In 2007 the bank intends to establish correspondent accounts in USA, France, England and UAE. The bank carries on active talks with international financial institutions such as the European Bank for Reconstruction & Development, the Black Sea Bank of Trade & Development, Societe Generale and the Islamic Development Bank.