MIRA
INFORM REPORT
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Report Date : |
13th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
BANK
EGHTESAD-E-NOVIN SSA |
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Formerly Known as: |
NOVIN
ECONOMIC BANK SSK (PJSC) |
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Registered Office : |
EN Bank Building, 51, corner of Africa Avenue, Baradaran-e-Sharifi,
Street, Nothern Gandi Avenue, P.O. Box:
19395-3796 |
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Country : |
Iran |
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Date of Incorporation : |
2001 |
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Legal Form : |
Private
Joint Stock Company |
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Line of Business : |
The bank provides the following services : 1. Corporate Banking Working Capital Facilities, Structured Credit Facilities, Equipment
Acquisition Facilities, Business Development 2. Consumer Banking Mortgage Facilities, Car Purchase Facilities |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
RIAL
10,000,000,000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
COMPANY NAME
BANK EGHTESAD-E-NOVIN SSA
ADDRESS
Building :
EN Bank Building
Street : 51, corner of Africa Avenue,
Baradaran-e-Sharifi
: Street, Nothern Gandi Avenue
P.O. Box :
19395-3796
Town : Tehran 19699-54345
Country : Iran
Telephone :
(98 21) 8878 8960
Fax : (98 21) 8888 0166
Trading Styles :
EN Bank
Formerly Known As :
Novin Economic Bank SSK (PJSC)
Also Known As :
Novin Economic Bank / SSA Bank Eghtesad-e-Novin / Modern Economic Bank
SENIOR COMPANY PERSONNEL
Name Position
1. Mohammad Sadr
Hasheminejad Chairman
2. Dr. Jalal
Rasoulof Manging Director Vice Chairman
3. Bahman Yazdkhasti Director
4. Dr. Alireza
Nasseri Director
5. Dr. Ali Ma’navi-rad Director
Total Employees : 100
(administration)
PAYMENTS
No complaints have been
heard regarding payments from local suppliers or banks.
Subject was the first
private bank in the Islamic Republic to receive the operation permit by the
Central Bank.
We consider it is
acceptable to deal with subject for LARGE amounts, although it is normal
accepted practice for international suppliers to deal on secured terms with
Iranian importers.
Opinion on maximum credit
: RIAL 10,000,000,000
Trade risk assessment : Fairly low
Opinion on the credit
figure of US DLRS 150,000 D/A:
We consider the above
figure to be within the company's financial capabilities.
FINANCIAL INFORMATION
Subject's financial
statements as at 20 March show :
in RIAL million
2005 2004
Cash 18,028 11,460
Balances with the Central Bank of Iran 25,228 2,586
Statutory deposits with
the Central Bank of Iran 827,493 261,563
Dues from banks 620,161 138,604
Investments - Bonds 138,393 237,629
Investments 185,674 95,075
Total Investments 1,814,977 746,917
Net loans 4,766,989 1,859,355
Fixed assets 163,424 74,585
Other assets 34,309 28,295
Total assets 6,779,699 2,709,152
Dues to banks 843,584 0 95,148
Demand deposits 472,717 447,629
Term deposits 4,547,495 1,835,558
Other deposits 10,518 1,547
Advanced received 15,232 5,376
Dividend payable 200,000 79,625
Other liabilities 113,365 64,758
Total 6,202,911 2,434,493
Provision for termination pay 2,200 772
Total Liabilities 6,205,111 2,435,265
Paid-up capital 500,000 250,000
Legal reserve 61,146 22,941
Retained earnings 13,442 946
Total shareholders equity 574,588 273,887
Total liabilities & shareholders equity 6,779,699 2,709,152
Letters of guarantee 111,310 59,954
Letters of credit 273,474 0
Contingent liabilities 384,784 59,954
Income statement
Interest on loans 694,640 282,642
Interest on bonds 100,116 48,596
Interest on deposits with banks 6,124 1,041
Interest on statutory deposits 5,373 1,665
Interest income 806,253 333,944
Interest on deposits & borrowings (584,704) (214,378)
Net interest income 221,549 119,566
Fees & commissions 20,919 2,014
Income from investments 95,611 32,820
Other income 23,235 6,572
Non interest income 139,765 41,406
Total operating income 361,314 160,972
Human resource expenses (22,611) (10,559)
General administrative expenses 15,666) (8,259)
Depreciation/Amortization (3,995) (8,307)
Total operating expenses (42,272) (27,125)
Operating income 319,042 133,847
Bad & doubtful debts (48,663) (29,948)
Net income before tax 270,379 103,899
Taxes (15,678) (11,033)
Net income 254,701 92,866
LEGAL STATUS AND HISTORY
Date Started : 2001
History
: EN Bank was established in 2001 under the newly revised licensing and
supervisory functions of the Central Bank of Iran aimed at modernizing Iran’s
banking sector on the basis of increasingly unregulated and competitive
markets. The capital was partly raised through the public offering which was
staged by Behshahr Industries Development and Iran Construction and Investment
in July 2001 in order to raise initial capital required by the Central Bank
(RIAL 200 billion). Subject received an operating licence from Bank Markazi on
25 August 2001 (and thus became the first privately owned bank after the
revolution). Upon the Bank's establishment its Board members included Ali
Salehi Amiri, Mojtaba Zavar and Mohsen Moalemian. Its managing director was
Farid Zia Maleki while Hussein Abd-e Tabrizi was chairman of the board of
directors. He was said to be the driving force behind the Bank and was often
locally (press and market place sources) accused directly or indirectly of
being affiliated to the government. Through the connections he had established
during his tenure as manager of the Construction Investments Company, he
gathered together the investors of the bank. After being appointed as the
secretary general of the Tehran Stock Exchange, he resigned from his post as a
member of the board of directors of the bank. The managing director of the bank,
too, was changed.
Subject was listed on the
Tehran Stock Exchange in 2004.
Authorised Capital : RIAL 2,500,000,000
Authorised & Paid up
Capital : RIAL 500,000,000
Sherkat Sahami Khass
(private joint stock company) with the following directors and shareholders :
Shareholders
1. Tehran Renovation and
Construction Company
2. Youth Housing Company
3. Iran Construction
Investment Company
4. Salahshouran Housing
Company
5. Kargaran (Workers)
Housing Company
6. Iran Development and
Housing Company
7. Iran and Kish
Developers’ Recreational Tourist Complexes Company
8. Novin Construction
Investment Company
9. Stratus International
Contractor Company
10. Behshahr Industrial
Group Construction Company
11. Industry Group
12. Behpak Industrial
Company
13. Behpakhsh Company
14. Iran Behshahr
Industrial Group Investment Company
15. Behshahr Industrial
Development Company
16. Paxan Company
17. Iran Carbon
Company
18. Samaneh Gostar Novin
Investment Company
19. State Pension Fund
Investment Company
20. State Pension Fund
21. Banks’ Employees
Pension and Deposit Fund’s Investment Company;
22. Other nvestors and
the Members of the Public
Affiliated companies of Bank Eghtesad-e-Novin SSA :
Associates
1. Novin Insurance
Company
2. Novin Support Services
Company
3. Eghtesad Novin
Brokerage Company
4. Eghtesad Novin Leasing
Company
5. Eghtesad Novin
Investment Company
6. Eghtesad Novin Money
Changing and Foreign Exchange Services Company
ACTIVITIES
The Subject is involved
in the following activities :
The bank provides the
following services :
1. Corporate Banking
- Working Capital Facilities
- Structured Credit Facilities
- Equipment Acquisition Facilities
- Business Development
2. Consumer Banking
- Mortgage Facilities
- Car Purchase Facilities
The following are
currently being developed :
- International banking services, including
Letters of Credit and Letters of Guarantee
- Trade Finance
- Leasing of equipment & machinery
- Leasing of cars
- Credit/Charge Cards in foreign currency
FACILITIES
The Subject has the
following facilities :
Office premises at the
heading address and 20 branches throughout the country.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
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56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
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<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
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NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
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