Baku. 3 June. REPORT.AZ/ Market value of shares of International Bank of Azerbaijan (IBA) just in May has fallen by 30%. Report was told by Jafar Ibrahimli, Member of the Supervisory Board of 'Kapital Menecment' investment company, providing intermediary services for buying and selling shares.
According to him, now the stock market shares with a nominal value of 27 kopecks offered potential investors to 7 kopecks (74% cheaper), although only a month ago, they traded at 10 kopecks.
"The interest in IBA shares drops gradually, as the bank over the years does not pay dividends to shareholders. The number of those wishing to sell their share is growing rapidly in the bank, resulting in a stock worthless. Despite the fact that the action exhibited by 7 kopecks, the persons wishing to buy them offering a symbolic amount - 1 kopeck", said Jafar Ibrahimli.
According to him, the shares of IBA will further fall in price due to the fact that the bank finished 2015 with a loss of 823.61 million AZN: "After the improving measures of the World Bank, changing of leadership have given expectations that the bank will start to work with profit. Last year, the bank's earnings were not bad, but most of them went into the creation of reserves. So the loan portfolio remains problematic. The Bank doesn't make any comments on this issue. If there were objective reasons for loss-making activities of the bank, the shareholders could suffer, but such uncertainty leads to a massive failure of the shareholders."
IBA last dividend paid to shareholders on the results of year 2012. This year, the owner of each share earned 4% (about 1 kopeck) from its nominal value. This has increased the market value of shares of up to 1.7-1.8 AZN. In the past three years, the bank said that the work at a loss and ceased to pay dividends to shareholders.
Notably, IBA authorized capital equals 641,287,000. Manats. State bank owns 54.96% (Ministry of Finance), non-governmental organizations - 8.49%, individuals - 36.55%.