Parabank JSC

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Parabank JSC

• G\logo\2.pngJanuary 01, 2008
• Baku, Azerbaijan

Presentation
Parabank JSC 2008
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Contents

• Azerbaijan
• Todays Azerbaijan economy
• Bank system
• Parabank in numbers
• International relations
• Strategically targets in 2008-2010 years
• Business philosophy
• Business card

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AZERBAIJAN REPUBLIC

• Area - 86,6 thousand km2
• Population - 8 436,0 thousand
• Language Azerbaijan
• Currency Manat (AZN)
• Capital Baku city
• Azerbaijan has the highest rapidly developing
  economy in the world
• A member of UNO, GUAM, European Council
• Stable political situation
• Constantly developing bank system

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Todays Azerbaijan Economy

• GDP increased 25,2 in 2007
• GDP was 25.228, 1million in 2007.
• Inflation rate was 16,7
• GDP share of non-governmental sector is 84,0
• Salaries of the population increased 44
• According to 2007, in account of all the
  financial sources, investment more than 17,8 was
  directed to the development of economy and social
  spheres by the different property and
  organizations.
• Projects
• Baku Tbilisi Jeyhan oil pipeline
• Baku Tbilisi Arzurum gas-pipe
• Baku Tbilisi Akhalkalaki Gars railway line

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Bank System

• Govermental control via
• National Bank of Azerbaijan

• 46 banks are acting in Azerbaijan. These are
• Private banks - 44
• State bank 2 (AIB, Capital Bank)
• Banks with foreign capital
• Yapicredi Azerbaijan,
• Azerbaijan Micro Finance Bank
• Azerturkbank
• In the result of the realized reforms in the
  bank system, as well as bank transparence, with
  the purpose of durability of the banks to the
  rivalry, charter capital of the new established
  banks was fixed in the amount of 10.0 mln AZN.

Currency rate 30 05 2008
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Bank System

• In comparison with 2006
• Increase of assets 62,75
• Increase of credit portfolio was 82,97
• Crediting was realized for the development of
  economy in the amount of 42,7 by state banks,
  54,9 by private banks, 2,4 by non-bank credit
  organizations.
• Credit which specific weight was 30 in total
  crediting was directed to the economy of
  Azerbaijan by the banks established with the
  participation of the foreign capital.
• 53,6 of the credits was granted in manat, but
  46,4 in foreign currency.

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Bank System

• Belief of the population in the banks have more
  increased during the last 10 years. In the result
  of the price policy realized by the National
  Bank, amount of manat deposits of the population
  has increased in the last 2 years.

• The main part of the liabilities structure in the
  bank system is the deposits attracted from the
  population and attractions from the financial
  sector.
• Rapidly increase of the foreign capital in the
  bank market leads the increase of the new
  technology of the bank system and foreign
  experiment.

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About the Bank

• Parabank Joint Stock Company, since it's
  establishment in 1991 until nowadays is one of
  the most rapidly developing financial
  institutions.
• Resting on the 17 year experience in banking
  sphere, Parabank is constantly renewing its
  products, marching in step with time and
  contemporary requirements of its partners and
  customers. We steadily develop our course of
  supporting medium and small-scale business,
  basing on the wide spectrum of classic banking
  services.
• From its' establishment until nowadays  Parabank
  continued collaboration with international
  financial institutions and foreign banks, such as
  Alfa Bank, Azerbaijan German Fund.., Commerzbank,
  Black Sea and Trade Development, EBRD, IFC and
  etc. Our bank being open for the constantly
  collaboration with the financial institutes,
  invested 1.900.000 eur with the help of
  German-Azerbaijan Found since 2003 and just
  moment our portfolio is 1.255.000 eur.
• It has been an official member of Azerbaijan
  Deposits Insurance Fond since 2007. Our bank
  having large branch net continues the process of
  crediting of the population, small and middle
  ownership in the different regons of the republic
  in accordance with its development strategy.
• Today Parabank uses the most foremost technology,
  which enables us to deliver the most demanded
  services of our customers. One of the most
  important goals of the bank is to meet
  obligations to our customers without any
  conditions.

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Ideology of the Bank

• Being a technological and mobile bank, rendering
  actual and qualitative financial services in the
  vast spectrum, we justify our customers hope.
• Our business ideology is based on the principles
  of effective, reliability and profitability.

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Services

• Parabank JCS is widening its vast custimer base,
  as well as service sphere in the period of its 17
  years activity. Bank services
• Cash-accounting
• Documentary operations
• International and local money transfer
• Operations in securities
• Receipt of deposits
• Business and auto credits
• Mortgage credits
• Plastic cards
• Currency exchange operations
• Check cashing service

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Assets and Profitability

• Using assets maximally, Parabank increased its
  assets 368 during the last 3.5 years.

• One of the future plans is to increase
  profitability using assets with the vast branch
  net.

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Credit Portfolio

• Credit portfolio based on currency
• AZN 26 236.856 thousand manats
• USD 5 619.287 thousand manats
• EUR 623.784 thousand manats
• Total 32 479.927 thousand manats
• A total of comprise 24.02- of the
  portfolio.
• Portfolio division based on the terms
• Short-term credits 42
• Middle-term credits 48
• Long-term credits 5
• Expired credits 5

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Credit Portfolio

• Parabank has directed its crediting operations
  directly to the development of the small and
  medium entrepreneurship. The portfolio
  diversification based on the sectors clearly
  indicates that 94.6 of the customer basis
  includes trade, service, as well as credits
  granted to physical persons
• Our Bank greatly caring for the regional
  development pays a special attention to granting
  micro credits together with two branches
  operating within the region.
• The portfolio division based on the risk level is
  carried out based on the National Bank norms and
  International Financial standards.

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Liabilities

• Most of the bank engagements include the savings
  attracted from the people, current customer
  accounts, as well as funds attracted from
  financial institutions.
• The interest rate increase within the bank market
  since 2005 has expanded the pepless interests in
  the banks. The directly attracted savings at
  Parabank JSC include the funds attracted from
  physical persons.

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Deposit portfolio

• The largest clientele of our bank rendering a
  complete retail services include the middle class
  of the population.
• During 2005-2006 Parabank OJSC produced 3.160.000
  US subordination DEB of 10.000 US nominal
  value.
• Division based on the currency is as
  follows
• AZN 15.788.346,54
• USD 10.785.945,15
• EUR 4.821.908,92
• Total 31.396.200,61

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Average balance rates for Credit portfolio
Average balance rates for Deposit portfolio
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Customer basis

• Rendering retail banking services Parabank JSC
  totalizes its customer basis in accordance with
  its service sphere and includes the clientele of
  entrepreneurs engaged in small and medium
  business, as well as of corporate customers.

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Correspondence relations

• Parabank JSC constantly expanding its
  correspondence relations intends to increase such
  relations in the following strategic term.

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International Money Transfer

• Parabank OPSC establishing relaitons with the
  international money transfer systems since 2002
  and regarding the expantion of these relations as
  its future strategic goal has realized a total of
  13.8 million manat money transfer during 2007.
• Parabank OJSC realized the largest project of the
  bank system in the Republic since 2005. The post
  offices in the country were connected to the
  International Money Transfer Systems. Currently,
  161 post offices render such a service to the
  population.

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Shareholder structure
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Structure
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Management

• Supervisory Board
• Rasim Poladov
• The Supervisory Board
• Natig Agazade
• Member of The Supervisory Board
• (Zygon Consulting)
• Bagirov Ilham
• Member of The Supervisory Board (EFES
  LLC)

• Management Board
• Veli Guliyev
• The Chairman of the Board
• Eldar Guliyev
• Councilor of the Board
• Azer Ragimli
• Deputy chairman of the Board
• Mazahir Mammadov
• Deputy chairman of the Board
• Nigar Mehdiyeva
• Finance Director

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Committee

• Audit Committee- Reviews the report on the
  business activity of the Bank prepared by the
  Internal Audit and informs the Supervisory Board
  about the accepted decisions.
• Credit Committee- Defines and presents to the
  Supervisory Board the bank policy on credit and
  investment diversifies credit portfolio defines
  the limits bears responsibilities on the quality
  of the credit portfolio carried out the
  certification process of the employees engaged in
  credit business.
• IT Committee- Is the body defining the IT
  strategy in accordance with the general strategy
  on Bank activities. The IT committee ratifies the
  plans based on the IT strategy analyses the
  functional IT requirements prepared by the
  structural bank units, as well as defines their
  correspondence to the business plan of the bank
  Evaluates their effectiveness taking into account
  their implementation fees Defines the priorities
  of the IT products necessary for the IT
  requirements and prepares concrete proposals
  together with their budget for the ratification
  of the Supervisory Board
• Assets and Liabilities Management Committee- ALMC
  is the body bearing the responsibility for the
  effective management of the Bank liquidation, its
  assets and liabilities in general. This Committee
  renders an account before the Supervisory Board.
• Risk Management Committee- Is the advisory
  corporate body of the Supervisory Board on
  defining and evaluating the policies, procedures
  and limits for all kinds risk management, as well
  as on coordinating the activities of the other
  committees within the Bank
• Human Resource Management Commission- Implements
  the Bank activities on human resource management,
  as well as improvement of their social and
  working conditions and undertakings. The
  Commission also monitors the preparation and
  control of the inter-bank ethic rules and their
  maintenance.

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Branches and Investment

• Investment
• Milli Kart LLC 10

• Investment
• Milli Kart LLC 10

• Investment
• Milli Kart LLC 10

• Branches
• Narimanov-30 Hidayatzade Street, Baku
• Azizbayov-65\67 Fizuli Street, Baku
• Ganja-9 Khatai Avenue, Baku
• Chambarakand-30 H.Javid Street, Baku
• Ganjlik- 37 Khojali Street, Baku
• Sumgayit-132\16 S.Vurgun Street, Sumgayit
• Beylagan- 23a H.Aliyev Street, Beylagan
• Baku-17 Azadlig Avenue, Baku (on the stage of
  opening)
• Yasamal 41 Sharifzade, Baku (on the stage of
  opening)
• Azadliq 25 A T.Aliyev, Baku (on the stage of
  opening)

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International relations

• Parabank OJSC launching active relations with the
  international financial institutes and financial
  credit organizations since 2002 has got the first
  financial assistance within German-Azerbaijani
  Fund. A total amount of 500.000 Euros trench was
  allocated within the framework agreement. The
  balance of the funds involved by the Bank up to
  the recent moment comprises 1.325.391 Euros.
• Our Bank, which initiated a close co-operation
  with the EBRD (European Bank of Reconstruction
  and Development), will increase its business
  activities by getting new trenches from the EBRD
  in 2008.
• Parabank has been co-operating with a number of
  local financial institutions and National Fund
  for Assistance to Businessmen since 2002. The
  amount of the funds renewed by the Fund comprises
  1.792.000 AZN.

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Short Term Strategy

• To strengthen the institutional development of
  the Bank applying the management systems by
  taking into consideration the international
  experience and the existing legislation.
• To reconstruct human resources management process
• To reconstruct completely the financial
  management process
• To create the systems on information technologies
  and data access providing implementation of the
  business strategy of the Bank
• To expand the relations with the international
  financial institutions
• To attract additional investors

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Strategic goals for 2008 - 2010

• Parabank JSC fully implementing the National Bank
  standards on the capital intends to expand the
  increase of the sum total capital.

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Strategic goals for 2008 - 2010

• Remaining loyal to its business relations
  Parabank will continue crediting small and medium
  entrepreneurs, as well as physical persons during
  2008-2010.

• As during the previous strategic period, Parabank
  OJSC will regard the loyalty to the people as its
  priority during 2008-2010 strategic plan. The
  increase of the deposit portfolio is intended to
  be increased for 140 comparative to the previous
  period until 2010.

• Two new projects, namely Mortgage and Leasing
  Projects will be launched in 2008-2009.

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Strategic goals for 2008 - 2010

• Parabank OJSC will icrease the number of physical
  and legal persons with its product types within
  the following three years

• Parabank OJSC always regarding its care for the
  customers as a priority intends to increase the
  number of its branches from 8 to 15 in 2008-2010
  with the view to improve the quality of the
  customer service.

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Business philosophy of the Bank

• Reliability
• Security
• Sincerity
• Transparency
• Independence
• High quality service
• Value for Customers
• Business team with a corporate spirit
• Service of the Economy of Azerbaijan
• Respect and maintenance of the State laws

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Parabank JSC business card during the new
development period
To become a corporate spirit universal bank
rendering services in all the spheres of economy
with a wide transparent and open to investment
branch network constantly improving its
experience in business with people, small and
medium enterprises
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Investor relations team
Anar Behbudov Head of Settlement
Department Tel.[phone]
(ext.221) Mob.[phone] Anar.behbudov_at_par
abank.az
Rufat Nagiyev Head of Strategic Group Tel.(994
12) 447 1000 (ext.204) Mob.[phone]
7404 Rufat.nagiyev_at_parabank.az
Elnur Agayev Head of Treasury Department Tel.(994
12) 447 1000 (ext.206) Mob.[phone]
1000 elnur.agayev_at_parabank.az
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Thanks for your attention !!!
Parabank JSC
office_at_parabank.az Baku,Azerba
ijan
www.parabank.az