Moody's affirms the rating of Bank of Baku

Baku. 27 July. REPORT.AZ/ International rating agency Moody's has affirmed the stability rating of Bank of Baku in the first half of 2016 year. The report of the agency also indicates that the Bank maintained its position against the background of a difficult economic situation.

Report was told in the press service of the bank.

In a statement, the agency has positively assessed the adequacy of capital, policy provisioning, liquidity and potential profitability of the Bank.

According to the financial performance of the bank as of 1 July 2016, the level of gross capital adequacy is 19.5%, which exceeds the minimum rate of 10% set by the Central Bank. Moody's has stressed that the bank has created more than 100% of reserves for problem loans, while profit before provisions amounted to 9.3% of total assets. The report specified that the rate of the bank's liquidity improved significantly. Taking into account the current macroeconomic environment, the bank paid special attention to the optimization of operating expenses in the second quarter 2015.

In view of the above, Moody's rating agency has retained the stability of the bank on B3 rating.