Statement of the Board’s Chairman
Distinguished shareholders, customers and colleagues!
On behalf of the team and with deep proud of our development I would like to emphasize that in 2008 Kapital Bank achieved good results associated with its strategic goals.
The financial indicators for 2008 are as following: increase of assets made 50.8% in comparison with the previous year, growth of deposits reached 71% and increase in credits made 36.8%. In term of profitability and efficiency the Bank is among leading banks of the country. The market share according to the major indicators is preserved and in some directions is increased.
The certain steps toward privatization of the Bank, expansion of its activities and positive financial indicators have been reflected in the high assessment of the Bank by the international rating agencies. Thus, the Fitch Ratings agency, despite the known events developed in the world financial market and the world economic crisis, at the evaluation of the Bank has kept its long-term rating (IDR) "B +". The rating forecast - "stable".
The Bank is deepening the corporate business, taking into account interests of small and medium enterprises. The State Program “On Social-Economic development of regions (2004-2008)” has created first-rate possibilities for the economy, including its banking sector. Within the framework of that Program the branches of the Bank distributed means for enterprises and organizations, located in the regions. This made both through means of the National Fund for Support of Entrepreneurship and from Kapital Bank’s resources.
The Bank participates in one more important program associated with the Decree of the President of Azerbaijan form 4 August 2003 “On measures to develop the State Pension System in the Azerbaijan Republic”. Kapital Bank became a winner in 4 groups of the tender held in order to select banks dealing with payments of pensions by plastic cards in the regions of Azerbaijan. Now in 28 regions the Kapital Bank pays pensions and makes other social payments to 118 000 pensioners. During 2006 there were installed additional 49 ATMs and their number reached 192 for 01.01.2007. The number of POS terminals also increased on 92 and made 298. There is increase in number of plastic cards. Thus, their total number made 500 000 for the end of 2006. This means grow on 340 cards since 01.01.2006. There is no doubt that Kapital Bank will play a significant role in the regional development through its branches spread all over the country.
The Bank pays a special attention to the development of the modern banking information technologies. It is quite natural that we invest in IT. Kapital Bank prepared its strategic plan for IT covering 2006-2008, which was approved by the Board. In order to provide the modern requirements of the Bank we held an open tender and the I-Flex Solutions Ltd became a winner of it. On 27 January 2006 this Company and Kapital Bank signed a contract on banking operation system “Flexcube”. In May of 2006 employees of the Bank participated in the trainings arranged in India. Every stage of the training – installation, GAP analysis, parameterization, UAT, migration, Live – was successfully completed.
The Bank promotes principles of the corporate management. Its integral parts are maximal transparency for our customers and shareholders, adherence of their interests. The appropriate infrastructure and responsibility of the management, which being formed on the basis of professionalism, play a decisive role here. It is obvious that professionalism of the management, capable to assess adequately possible risks strongly supports our strategic decisions.
We have been trying to emphasize at all levels closeness to our clients and their interests, initiating actions confirming our intentions. We provide an extensive media coverage of our activities, hold trainings for the personnel and strengthen control over the requirements of our customers. In 2006 was prepared 21 procedures, covering different spheres of the Bank’s activities.
As is known Kapital Bank possesses the widest net of branches in the Republic. Through this net the Bank focuses its attention on needs of customers and makes it constantly. In order to keep the leading positions in this field the Bank prepares and offers new products as well as favorable conditions for them. A special attention is paid to the quality of services in the branches. The intensive trainings boost up the level of professionalism of our employees. At the same time we remember about moral and financial motivation of the personnel. The final results of 2006 made it possible to award our best branches in several nominations. The ceremony of nomination was widely covered in the media. We do believe that such awards must turn into a good tradition for the Bank.
In conclusion I would like to emphasize that all our positive results and achievements became possible thanks to the scaled economic reforms, which were initiated by the national leader Heydar Aliyev and now are being implemented by the President of Azerbaijan Ilham Aliyev.
We’ll make all efforts to contribute extensively in the economic development of our country, its prosperity and success!
