Trade Bank of Iraq reports 68% rise in profit as revenue climbs
Lender is planning local and international expansion to diversify its sources of revenue
The Trade Bank of Iraq (TBI), the country's largest trade financing institution, reported a 68 per cent increase in full-year net profit on the back of higher revenue.
Net profit for the period ending December 31 climbed to $556 million (Dh2 billion), the bank said in a statement on Sunday. Revenue for the period rose 12 per cent year-on-year to $673m. The bank's total assets grew 27 per cent to $29bn.
“Last year has been a good period for TBI and we have continued to support businesses and financial institutions to facilitate growth and expansion across many sectors,” said Faisal Al Haimus, chairman and president of Trade Bank of Iraq.
“We have achieved this success through prudent risk management and our aggressive technology-supported expansion strategy.”
TBI, which is wholly-owned by the government of Iraq, granted loans to the value of $434m in 2019.
A further $1.9bn of loans were aggregated for various government and public sector projects in the energy, industrial, agricultural and commercial sectors.
The lender is currently working on expanding its network domestically and internationally to diversify its sources of revenue as it aims to grow at a compound annual rate of 30 per cent over the next three years.
The bank opened its first branch outside Iraq last year in Riyadh and plans to upgrade its representative office in Abu Dhabi Global Market to allow it to conduct investment management and advisory activities.
“As part of our strategic plan, we are aiming for bigger retail and international business to achieve a growth rate of 30 per cent of our total revenues, year-on-year, in the next three years through new technology-driven, need-based product offerings and international expansion.”
Established in July 2003 with the aim of helping the reconstruction of Iraq by facilitating international trade after the end of the United Nation’s oil-for-food programme, Baghdad-based TBI has grown rapidly and has presence in 26 locations across Iraq. It conducts approximately 80 per cent of the trade finance business in the country.
“As TBI moves forward with its 2020-23 strategic plan that will take the bank higher, it will continue to play a pivotal and influential role in Iraq’s ongoing recovery,” Mr Haimus said.
Updated: February 16, 2020 05:32 PM