The Banks distributable reserves are determined by the amount of its reserves as disclosed in its accounts prepared in accordance with AAL. At 31 December 1997, the statutory accounts of the Bank disclosed distributable reserves of AZM 96,600 and non-distributable reserves of AZM 48,274.

The general reserves represent amounts set aside, as allowed by the regulations of the Azerbaijan, in respect of general banking risks, including future losses and other unforeseen risks or contingencies.

The revaluation reserves arose from government mandated revaluations of fixed assets in 1996. The tangible fixed assets of the Bank were revalued by an equivalent amount.