Friday, February 17 2017 17:29

ArmInfo. Eurasian Development Bank (EDB) published its financial statements for 2016 prepared in accordance with the International Financial Reporting Standards (IFRS). In 2016, the Bank's net income totalled US $163.5 million, compared to a net loss of US $143.6 in 2015.

As EDB press-service told ArmInfo, The net interest income before provisions for impairment losses on interest bearing assets amounted to US $109.2 million, a US $16.3 million (17.6%) increase year-on-year. This was achieved, in the first place, due toa significant decrease in interest expenses, from US $133.1 million to US $84.3 million (36.7%), as a result of the repurchase of the Bank's securities in the end of 2015 and during 2016; and an increase in interest income on financial assets available for sale from US $4.9 million in 2015 to US $18.5 million in 2016.

In 2016, EDB worked to improve the reliability of its loan portfolio and, as a result, recovered the previously created provisions for impairment losses in the amount of US $54.5 million.

The net non-interest income in 2016 reached US $30.2 million due to the increased return on transactions with the Bank's treasury portfolio. In 2015, this figure was negative because a US $64.3 million provision for impairment losses on equity instruments and other assets was created.

Optimised operating expenses and a stricter budget discipline have helped to reduce these expenses by US $4.2 million, or 12.3%, year-on-year, to US $30 million.

As at 31 December 2016, EDB's assets grew by US $374.4 million (13.0%) to US $3.26 billion.

Loans to customers totalled US $1.48 billion, down US $17.2 million or 1.1% over the period.

Issued debt securities stood at US $1.16 billion at the end of the period, which is 3.4% less compared to the end of 2015 due to the repurchase of the Bank's debt securities issued earlier.

The Bank's equity increased by US $167.8 million (11.2%) to US $1.67 billion.

Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB's charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.