BANK OF BAKU AUDITORS REPORT AND
FINANCIAL STATEMENTS AT
31 DECEMBER 2001
Note 6 - Loans and advances to customers
2001
2000
Performing loans
19,410,585
9,027,867
Non-performing loans
245,905
838,971
Total loans and advances to customers
19,656,490
9,866,838
Add: Accrued interest receivable
310,656
216,703
Total amortized cost
19,967,146
10,083,541
Less: provision for impairment on loans to customers
(1,825,662)
(1,301,208)
Total loans and advances to customers net
18,141,484
8,782,333
Performing loans consist of rescheduled loans amounting to AZM 1,776,099 as at 31 December 2001 (2000: AZM 409,166).
The movement in the provision for impairment on loans to customers is as follows:
2001
2000
Provision for impairment on loans to customers at 1 January
1,301,208
353,242
Charge for the year
772,282
1,073,653
Loans written off during the year as un-collectible
(247,828)
(125,687)
Provision for impairment on loans to customers at 31 December
1,825,662
1,301,208
The economic sector risk concentration of the loan portfolio is as follows:
2001
%
2000
%
Consumer loans
- purchase of motor vehicles
3,954,055
34
639,930
9
- educational loans
96,622
1
-
-
- mortgage loans
-
-
1,583,315
22
- other purposes
7,709,130
65
5,143,695
69
Total consumer loans
11,759,823
59
7,424,940
74
Commercial loans by sector
Trade
5,420,110
27
980,886
10
Construction
1,192,327
6
329,552
3
Production
1,143,840
6
114,472
1
Agriculture
451,046
2
1,063,996
10
Transportation
-
-
169,695
2
Total loans and advances to customers
19,967,146
100
10,083,541
100
Geographical and currency analysis of loans and advances to customers are disclosed in
Note 3. The maturity structure of loan portfolio is detailed in
Note 3.
