DUSHANBE, August 12, 2016, Asia-Plus – The Eurasian Development Bank (EDB) yesterday published its financial statements prepared in accordance with the International Financial Reporting Standards (IFRS) for the first six months of 2016.
EDB reportedly had a record high net profit of US $40.7 million in the period, compared to previous similar periods, over the entire period of its operations.
EDB’s net interest income before provisions for impairment losses on interest bearing assets increased by US $9.1 million (19.3%) year-on-year. The increase was primarily due to a reduction in interest expense by US $31.6 million (43%) as a result of the repurchase of the Bank”s Eurobonds.
Over the first six months of 2016, the Bank has made provisions for impairment losses on interest bearing assets for a total of US $11.7 million, down US $127.5 million, or 91.6%, year-on-year. In the previous year, EDB had to make additional provisions the former Bank”s management had failed to form.
The net non-interest income in the period was US $13.4 million. In January-June 2015, this figure was reportedly negative, primarily because of the making of provisions for impairment losses on non-interest bearing assets.
Optimized operating expenses and stricter budget discipline have helped to reduce these expenses by US $4.8 million, or 22%, year-on-year, to US $17 million.
EDB”s assets grew by US $127.1 million (4.4%) in six months to June 30, 2016, reaching US $3 billion.
Loans to customers reportedly totaled US $1.35 billion, down US $153.7 million, or 10.3%, over the period.
EDB”s issued debt securities totaled US $1.12 billion at the end of the period, which is 6.2% less compared to the end of 2015 due to the repurchase of the Bank”s debt securities issued earlier.
Over the first six months of 2016, EDB”s equity has increased by US $46 million (3.1%) to US $1.55 billion.
The Bank’s financial statements were reportedly reviewed by Deloitte.
Eurasian Development Bank (EDB) is an international financial organization founded by Russia and Kazakhstan in 2006. The members of the Bank are Russia, Kazakhstan, Armenia, Tajikistan and Belarus (2010). Other states or international organizations can become members by joining the Agreement Establishing the EDB. The Bank had authorized capital in exceeds US$1.5 billion, which was formed of contributions by its member states: Russia (US$1billion), Kazakhstan (US$500 million), Armenia (US$100,000), Tajikistan (US$500,000) and Belarus (US$15 million). The authorized capital may be increased by resolution of the Bank’s Council. The Bank has the status of an international organization, and is subject to international law.
