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AccessBank expects to swing to profit in 2020 after capital boost

AccessBank CJSC expects to turn to profit in 2020 following the completion of its capitalization, its CEO Anar Hasanov told Reuters.

The Azeri lender's 184-million-manat capital boost saw Asian Development Bank and European Investment Bank become its new major shareholders with stakes of 19.9% and 17.4%, respectively, while International Finance Corp. maintained its 16.6% shareholding, Hasanov reportedly said.

Of the recapitalization package, 118.5 million manats was injected into the bank's Tier 1 capital as of February-end, after which the lender's total regulatory capital amounted to 75 million manats, the CEO noted, adding that 22 million manats will be categorized as Tier II capital component by mid-March while another 22 million manats will be earmarked as contingent capital for 2020 and 2021.

AccessBank reported a 2018 net loss of 11.6 million manats, narrowing from the year-ago net loss of 56.4 million manats on the back of a sharp devaluation of the local currency, Reuters noted.

"We expect to report operation profit from the second quarter of this year and annual net profit in 2020," Hassanov reportedly said, noting that the lender projects its total capital adequacy ratio to reach 12.2% at 2019-end, above the 10% minimum requirement. The ratio stood at 4.03% in 2018 and 6.38% a year earlier, according to the March 14 report.

As of March 14, US$1 was equivalent to 1.70 Azerbaijani manats.