“FINCA Azerbaijan” Non-Bank Credit Organization was able to maintain profitability during 2018, building upon previous 2016-2017 efforts to shrink operational costs with a focus on improving operational efficiency.
The company achieved 4.1 million AZN operational profit before the implementation of newly updated International Financial Reporting Standards (IFRS 9). FINCA Azerbaijan implemented IFRS9 standards in 2018 and this reduced the profitability by 3.9 million AZN for 2018. However, IFRS9 implementation had a positive impact on the previous year’s retained earnings, which resulted in a considerable increase in equity. FINCA resumed more active lending operations at the end of 2018, therefore the main drivers of operating profit were strong collections and recoveries as well as significant reductions in operating expenses.
Currently, the capital of the company is 3.7 million AZN which is 12 times higher than the regulatory requirement. Total equity stands at 7.7 million AZN as of December 31, 2018.
In 2019, FINCA Azerbaijan has continued to focus on increasing operational efficiency and is steadily increasing its regional branch presence in-line with the company’s current 5-year plan.