ArmInfo. The Eurasian Development Bank (EDB) announced financial results in accordance with the International Financial Reporting Standards (IFRS) for 6 months of 2017. According to the results of the first half of the year EDB net profit was $ 17.8 million.
The net interest income of the EDB before the formation of provisions for impairment of interest-bearing assets for 6 months of 2017 decreased by $ 11.7 million, or 20.9%, compared to the same period in 2016. This fact is caused by an increase in the amount of interest expenses by $ 12.5 million, or by 30.1%. This change was mainly due to a significant increase in the volume of Repo operations conducted by the Bank, interest expenses increased by $ 8.9 million. During the first half of 2017, the Bank established impairment reserves for interest-bearing assets for $ 15.6 million, which is $ 3.9 million, or 32.9%, more than similar expenses recognized by the Bank in the first half of 2016. Net non-interest income for the period amounted to $ 6.5 million, which is $ 6.9 million less than the net non-interest income for the same period in 2016. This decrease was caused by a decrease in income from sale of financial assets available for sale for $ 5.9 million.
As a result of optimization of operating expenses and maintenance of budgetary discipline, expenses under this item are almost at the level of the same period of last year and amounted to $ 17.4 million. In the first half of 2017, EDB assets grew by $ 153.4 million, or 4.7%, and amounted to $ 3.4 billion. Loans to customers amounted to $ 1.49 billion. The volume of signed investment projects reached $ 2.5 billion. The volume of issued debt securities of the Bank at the end of the reporting period was $ 1.22 billion, which is $ 67.1 million, or 5.8%, more compared to the end 2016. The EDB's capital for the first half of 2017 increased by $ 19 million, or 1.1%, to $ 1.69 billion.
The Eurasian Development Bank (EDB) is an international financial organization established by Russia and Kazakhstan in January 2006 to promote the development of the market economy of the participating countries, their sustainable economic growth and the expansion of mutual trade and economic ties. The authorized capital of the EDB is $ 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