PASHA Bank to float 5% stake after posting 218 mln manat profit

Azerbaijan’s leading private corporate lender PASHA Bank plans to float 5% of its share capital in an initial public offering (IPO) after posting a net profit of 218 million manat ($128 million) in 2024, the bank’s Chief Executive Officer Murad Suleymanov said.

He said the IPO is not driven by capital needs but aims to broaden the bank’s investor base and contribute to the development of Azerbaijan’s capital markets.

Return on equity (ROE) stood between 28% and 32% over the past three years, while the bank’s capital adequacy ratio exceeded 20%, significantly above regulatory requirements. Liquidity indicators also remained comfortably above minimum thresholds.

“The bank has historically distributed between 50% and 70% of its net profit as dividends. In the latest reporting year, approximately 109 million manat, or around 60% of profit, was paid out,” Suleymanov said.

Azerbaijan’s economy has recorded annual growth of 2.5% to 4% in recent years, supported by expansion in the non-oil sector and controlled inflation.

The banking sector has become structurally stronger, with higher capitalisation levels.

PASHA Bank, part of PASHA Holding, focuses primarily on corporate clients and small and medium-sized enterprises (SMEs) and operates subsidiaries in Georgia and Turkey.

“This IPO will mark the first public share offering by a private bank in Azerbaijan,” Suleymanov added.

($1 = 1.70 manat)

N.Tebrizli