Moody’s views Azeri bank positively

Moody's Investors Service said it affirmed International Bank of Azerbaijan's Ba3 long-term ratings and changed the outlook to positive from stable.

“IBA's asset quality has been improving in recent years with problem loans gradually decreasing to 4.6% of gross loans as of the end of 2022 from 7.7% in 2020 supported by improved debt servicing capacity of large borrowers and write-offs. Moody's expects the problem loan ratio will decline further and remain below 4% in the next 12-18 months. Coverage of problem loans by loan loss reserves remained strong at around 100%.

“IBA has consistently reported robust capital metrics and Moody's expects the bank's tangible common equity (TCE) to risk-weighted assets (RWA) ratio to remain above 22% in the next 12-18 months supported by internal capital generation and slower asset growth,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.