Finance

Finance

Alexander Yeryomin: â€œVTB Azerbaijanâ€™s strategic goal is to be among TOP-5 banksâ€

17 January 2014 11:12 (UTC +04:00)

At the same time, the loan portfolio rose 2.6 times to AZN 187.9 mln. Yeryomin noted that in the loan portfolio of the bank the corporate business rose 1.7 times, small business – 3.3 times and retail business - 2.7 times. Total capital tripled to AZN 45 mln. At the same time, the bank earned AZN 2.2 mln against AZN 2.8 mln loss forecasted for 2013.

Regarding this year’s forecast, Yeryomin stated that the assets and loan portfolio will increase by 1.7-1.8 times, deposit portfolio will be doubled. Moreover, development of corporate business direction will be accelerated. At the same time, the bank’s plans also include development of legal bases of retail business lending. Note that CBA prohibited crediting via remote workstations and this created problems for VTB Azerbaijan. Thus, the bank had to shut down 15 remote workstations. Yeryomin says banks’ credit points in the retail trade network in the world practice support increase of retail credits. However, CBA’s dissatisfaction with sharply decline of consumer lending is understandable.

Yeryomin also noted in relation to recommendation that made by the CBA to banks in December that this decision did not influence VTB Azerbaijan. Note that CBA recommended the banks not to give consumer loans without documents approving incomes. Yeryomin said such loans in VTB Azerbaijan was low and noted that this decision can negatively influence some banks.

Moreover, Yeryomin stated that bank does not intend to issue payments cards and apply mortgage lending. Currently, the bank is identifying certain credits on real estate, but these credits are limited with 5-year period: “Mortgage lending is given for longer period. Therefore, as bank borrower short-term loans, it does not intend to apply mortgage lending”.

Yeryomin also noted that VTB-Azerbaijan’s strategic goal is to enter TOP-5 banks.