TRADE BANK OF IRAQ ANNOUNCES CAPITAL INCREASE UNDER NEW THREE YEAR STRATEGIC VISION
Baghdad,31 March 2020: Trade Bank of Iraq (TBI) has announced a new capital increase that aims to raise the bank’s financial strength in line with the new strategic vision for 2020-23.
The bank has increased its capital to USD 3 billion (3.5 Trillion Iraqi Dinar) for the year 2020 from USD 2.3 billion (2.7 Trillion Iraqi Dinar) in 2019.
The step has been taken with the approval of the Prime Minster of Iraq on the back of TBI’s 2019 financial results audited by Ernst & Young. The increased capital is aimed at reinforcing the bank’s status in Iraq and its position as a leading Iraqi bank with global reach.
TBI achieved a robust growth in revenues and in key financial areas during the financial year 2019. The audited financial results shows that TBI achieved revenues of USD 708 million (837 billion Iraqi Dinar), which grew by 12% over 2018, and a net profit of USD 556 million (657 billion Iraqi dinars) in 2019, an increase of 68% compared to the previous year.
The total assets of TBI grew to USD 29 billion (34 trillion Iraqi Dinar) in 2019 thereby recording an increase of 27% over the same period in 2018.
Faisal Al Haimus, Chairman & President of Trade Bank of Iraq, said: “The capital increase is a significant step forward on the path to creating a stronger and growing bank. It will reinforce our financial strength substantially.
“The new three year strategic vision of our operating business should position us for significant growth, both in revenues and profit.”
The capital increase, the largest in the history of TBI since its establishment in 2003, solidifies TBI’s leadership on development financing for the country and help continue to play a pivotal and influential role in Iraq’s ongoing recovery.
Faisal added: “We have accomplished a lot in the recent years but we are aware that we have still a long way to go. Our responsibility is to help increase the quality of life for the people of Iraq.
“This capital increase exemplifies our strong commitment to see projects that will significantly influence the lives of the people in Iraq – in cities, in rural communities, and one that will have lasting impact for our future generations.”
TBI also successfully transferred 20% of the bank’s profits for the year 2019 amounting to 111 million US dollars (131 billion Iraqi dinars) to the Ministry of Finance – the state’s treasury.
The bank opened its first branch outside Iraq last year in Riyadh, KSA and plans to upgrade its representative office in Abu Dhabi Global Market to enable it to conduct investment management and advisory activities.
About Trade Bank of Iraq (TBI)
The Trade Bank of Iraq was established in 2003 and is the top commercial bank in the country. The bank holds approximately 80% of the trade finance business in Iraq and ranked 1 among Arab banks in terms of cost to income ratio and 332 globally in terms of Tier 1 capital. It has established 26 branches across Iraq, offering a wide range of banking services to all customers including companies, individuals and government institutions to widen its customer base and expand into new markets.