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IBA may bring interest rate on dividends to 60% per annum this year

06 March 2009 13:04 (UTC +04:00)

Baku. Vugar Israfilov - APA-Economics. International Bank of Azerbaijan (IBA) plans to achieve 40-48% per annum profitability in its dividends policy.
The bank said a profit of AZN 85.467 million for 2008 profit will be pumped into capitalization after a decision of the Board.
According to the national law, the direct injection of profit into the authorized capital exempts a bank or insurer from profit tax.
This law took effect in 2009 and will remain effective until 2012.
The law put forward by the National Bank and the Ministry of Finance is aimed at maintaining financial stability of institutions in the face of deepening global financial crisis.
The re-capitalization is expected to increase value of the bankâ€™s shares by 20%. And the dividends due to shareholders will rise to 60% per annum.
The bank predicts to get a profit of $174 million in 2009.
As Azerbaijanâ€™s and the regionâ€™s largest bank, the International Bank of Azerbaijan with a governmentâ€™s 50.2% stake is owned by 14 legal entities and 1556 individuals.