bank tose saderat.indd - Export Development Bank of Iran

Transcription

2
EDBI in Figures
for year ended
19.03.2012
for year ended
20.03.2011
Change
Performance (USD Millions)
136.11
108.51
25%
74.92
49.74
51%
Total Income
289.40
308.13
-6%
Total Expenses
153.29
199.62
-23%
Total Assets
5,512.09
6,250.20
-12%
Total Liabilities
3,655.91
4,238.05
-14%
Total Equity
1,856.18
2,012.15
-8%
Return on Assets
1.36%
0.80%
70%
Return on Equity
4.04%
2.47%
64%
1775
1963
-9.56%
34
33
3.03%
38
39
-1
Pre-tax Pro¿t
Net Pro¿t
Balance Sheet figures (USD Millions)
Key Ratios
Capital Adequacy
Tier I [Core Capital] (USD millions)
Core Capital Adequacy Ratio [Basel I]
(percentage)
Branch Network and Subsidiaries
Branches and Rep. Offices
5
Contents
6
E DBI in Figures
5
C ontents
6
B ank’s Board of Directors
10
B ank’s Managers
11
S tatement of Chairman
12
G roup Description
15
G roup Pro¿le
16
O rganizational chart
20
E DBI Today
21
P erformance Review
32
O perational Review
35
F inancial Review
47
C onsolidated Financial Statements & Accompanying Notes
51
I nternal Controls & Risk Management
93
S ocial & Organizational Responsibilities
107
G roup Network & EDBI’s Contact Details
115
PERSPECTIVE
Islamic Exim Bank of the Region
Pioneer in presenting timely and cost-effective innovative banking services to
the exporters
Equipped with the world’s state-of-the-art technologies
Enjoying financial and banking specialists at the international level and standing
in a special position among financial and monetary entities inside and outside
the country,
A safe backrest for Iranian exporters,
Mission
Providing all-inclusive support from development of Iran’s nonoil exports,
A trusted administrator of government’s policies in financing and facilitating
national exports,
Bank's Goal
Contributing to the “development of national exports and expansion of trade
and economic transactions with other states”
8
Bank’s Board of Directors
Mr. Bahman Vakili
Chairman and Managing Director
Master of Economic Planning and Development
Dr. Mojtaba Harati Nik
Dr. Hossein Eivazloo
Board Member
Board Member
Ph.D. in Business Administration, Orientation of
International Marketing
Dr. Saied Nikzad Larijani
Dr. Naser seifollahi
Board Member
Board Member
Ph.D. in Strategic Management
10
Ph.D. in Economics
Ph.D. in Business Administration
Bank’s Managers
DR. MORTEZA AKBARI
MR. MOHAMMAD H. MEHRANI
Manager of Finance Affairs
Manager of International Affairs
MR. EHTESHAM FALLAHFAR
MR. ASGHAR ANSARI
Manager of Credit Affairs
Manager of Community and Information
Technology
MR. MOHSEN ALAVI
MR. MOHAMMAD K. MALEKI
Manager of Branches Administration
Manager of Communications Managing
Director’s Affairs
MR. MOHSEN HASAN OLFAT
MR. MOHAMMAD J. MAZDEH
Manager of Security
Manager of Inspection And Internal Audit
MR. MAJID VAKILI
Manager of Human Resource Affairs
11
Statement of Chairman
Message of EDBI’s CEO
In the Iranian year 1390 (year ended March 19, 2012), EDBI was able to reach notable
achievements, leading the bank to gain 83% of the market share in ¿nancing the top selected
exporters.
In the reported year, as the Exim Bank of our country, and based on its mission, EDBI tried
to mainly focus on providing an all-inclusive support from development of national nonoil
exports and facilitating foreign trade of the country followed by providing the grounds for
a sustainable growth and development of economy through establishing close relationship
with Iranian exporters and studying their problems. I would like to draw your kind attention
to have a short look to the status of Iran’s foreign trade in the reported year.
The export of nonoil products in the Iranian year 1390 (year ended March 19, 2012) hit
an unprecedented record of USD 43.8 billion, showing 29% increase compared to the last
year. In this year, the imports of the country also reached USD 61.8 billion, indicating 4.1%
decrease compared to the previous year. Please note that the national nonoil products were
exported to 160 countries, and goods were imported into Iran from 153 countries of the
12
world, which fact not only shows that Iran has trades with a major part of world’s states, but
also indicates that:
1. Despite economic sanctions, Iran has been able to have trade transactions (including
exports and imports) with more than 160 countries, thanks to the efforts and endeavors
of economic activists in the Year of Economic Jihad.
2. With a 29% growth of nonoil exports, Iran has been able to prove the competitive edge
of economic capacities in production at the international level.
3. According to the comparative ¿gures in the Iranian years 1389 (year ended March
20, 2011) and 1390 (year ended March 19, 2012), Iran’s nonoil trade balance shows a
remarkable growth.
The subject of EDBI’s activity is as follows:
Granting facilities in domestic and foreign currencies, carrying out banking operations
and ¿nancing out of credit lines and issuing letters of guarantee and carrying out other
related banking operations. The bank mainly focuses its operations on exports.
Considering the year 1390 (year ended March 19, 2012), which was named the year of
Economic Jihad by the Supreme Leader, EDBI, in addition to focusing on its own activities
such as ¿nancing a larger part of the exports, has put a great emphasis on cooperation with
other establishments connected to exports as well as with export unions and establishments.
Among these, we can mention a contract signed between Export Development Bank and
National Development Fund in order to allocate USD 2 billion in support of exports.
Moreover, in order to support export of water and wastewater equipment and projects,
gold, jewelry and precious stones, handicrafts, agricultural products, etc. EDBI has signed
separate MoUs with individual unions in each related industry.
Achieving new capacities for motivating exporters to enter into international markets is
another priority of Export Development Bank of Iran in the Iranian year 1390 (year ended
March 19, 2012), and to this end, EDBI has signed a cooperation MoU with OPEC Fund
for International Development in order to ¿nance the execution of projects in less developed
countries.
The ¿gures and reports show that in the Iranian year 1390 (year ended March 19, 2012)
EDBI has allocated a major volume of its facilities to the following sections, in order:
13
industry and mine, chemical and petrochemical sector, technical, engineering and agricultural
services, and despite the sanctions, EDBI has been able to keep a relative share of the market
at a speci¿ed level, in the exchange documentary credits and letters of guarantee sector.
In the Iranian year 1390 (year ended March 19, 2012), the international and reliable rating
institute Capital Intelligence, having announced the credit rating of EDBI, stressed on the
EDBI’s very powerful capital adequacy and the Bank’s use of a clear and strong business
model.
The rate awarded by CI institute to EDBI is the highest rate in the country. The rating
institutes usually do not award a higher rate than the national rate to the banks of the respective
country. CI mentioned the strengths of EDBI, saying: “This governmental and specialized
bank, that operates in export of nonoil products, has maintained a very powerful capital
adequacy, capital input with low-priced governmental resources, high increase of pro¿ts in
foreign exchange sector, and a clear and strong business model in the past year.”
The exporters and economic authorities have always acknowledged the prominent role
of EDBI in granting credit facilities to the exports sector, specially its developmental and
humanitarian activities in other countries, carried out by the bank with the least ¿nancing
expenses, which fact shows the developmental position of EDBI and its valuable role in the
growth of Iran’s exports.
In the next year, the Islamic Republic of Iran is planning to take a bigger step towards
achieving USD 75 billion of exports, an issue which is unprecedented in Iran’s foreign trade
history, because the government’s goal in the Iranian year 1391 (year ended March 19, 2012)
is to balance exports and imports. To achieve this goal, EDBI is required to incorporate high
ambition in collaboration with Iran’s exporters and other entities operating in the exports
sector.
At the beginning of its 3rd decade of activity, it is hoped htat EDBI is able to play, more
than ever, its prominent role in trading with other countries of the world in collaboration with
international ¿nancial establishments.
Bahman Vakili
Chairman and CEO
Export Development Bank of Iran
14
Group Description
15
Group Profile
About EDBI
According to the approval made by the Extraordinary General Meeting of the Banks
on July 10, 1991, the Export Development Bank of Iran has been founded on November
24, 1991 under registration number 86936 as a governmental bank. It plays a leading role
in providing ¿nancial facilities as well as other banking and advisory services to Iranian
exporters and their foreign clients. The Bank mainly focuses on the promotion of non-oil
exports.
According to the paragraph 3 of Article of Association, including 12 sub-section and one
note, main activities of the Bank according to usury-free Banking Operation Act (enacted
on August 30, 1983), are, extending export facilities in domestic and foreign currencies,
correspondent banking operation, export ¿nancing by different credit lines, issuing bank
guarantees, and other banking operations.
The Bank offers comprehensive advice to its clients and abroad range of financial
solutions. So that EDBI offers its clients a distinct value proposition combining a global
reach with a structured advisory process and access to a broad range of sophisticated
products and services. The Bank delivers innovative and integrated solutions in close
collaboration with Asset Management.
Despite the impact of some ¿nancial and non-¿nancial crisis, the long term growth
prospects of the wealth management sector remain intact.
During its life, the Bank has intended to build a strong future for its business and
stakeholders. As per content of the article of association, the Bank is mandated to carry out
all banking transactions prescribed under the Usury-Free Banking Operations Act of 1983.
The Bank is active in the cornerstone products such as deposits, credit cards, ¿nance and
investment in addition to its export-leading position in commercial lending, treasury
management and advisory services.
The Bank’s regulator is Central Bank of Islamic Republic of Iran (CBI) which is in
charge of coordinating banking operations across sectors, reviewing the operations of
individual banks and setting interest and exchange rates. As the regulator, CBI licenses
16
and monitors ¿nancial services businesses to ensure that they operate ef¿ciently, honestly
and fairly.
The Bank encompasses businesses providing a full range of ¿nancial services to the
customers. By and large, the key activity areas of the Bank include:
- International Affairs which takes care of trade ¿nance and foreign investment;
- Credit Affairs mainly responsible for extending facilities, credit control, appraisal and
recovery;
- Finance Affairs in charge of treasury, funding, ¿nance and liquidity;
- Branch Administration for monitoring branches operational activities and follow-up on
their business achievements with the aim of increasing ef¿ciency, productivity and
pro¿tability;
- Risk Management for looking into different risks including credit, market and
operational;
- Logistics responsible for planning, personnel and supplies, together with the ful¿llment
of the respective quantitative and qualitative objectives in risk, human resources and
customer service; and
- Internal Audit Department responsible for monitoring internal control and summarizing
reports for the Board.
A properly functioning internal audit department is part of good corporate governance,
as recognized by national and international codes on corporate governance. This department
reviews the integrity of the systems by the use of computer assisted audit and other
techniques.
The organizational chart as well as more details on the Bank’s operations will be followed
on next pages.
Head quartered in Tehran, the branch network includes 38 domestic branches, three of
which located in the free trade zones.(located in KISH, CHABAHAR, QESHM)
A representative of¿ce, meanwhile, has been established in Almaty, Kazakhstan which is
scheduled to be converted into an independent subsidiary and additionally a wholly owned
bank which has been established in Caracas, Venezuela.
17
Based on the Bank’s ambitious international expansion strategy, it aims at growing the
business activities of its subsidiaries and to penetrate to new markets. This was the case
when the Bank participated in establishment of a bank in the Belarus and developed itself
through a partially owned bank (Honor Bank) so that it brought many business opportunities
to the group.
The main subsidiaries and associates of the Bank are as follows:
- Banco Internacional de Desarrollo,C. A. (Banco Universal)
The wholly-owned subsidiary of the Bank as a Venezuelan universal bank has
of¿cially been registered in Venezuela on August 02, 2008 with the capital amounting to
VEB 40,000,000,000 about USD 18,600,000 that is fully paid by EDBI as its sole
shareholder.
- EDBI Stock Brokerage
The Bank offers corporate customers through its brokerage of¿ce at Tehran Stock
Exchange several options for trading, asset management, underwriting, and investment
advisory services with multi-channel electronic access including the internet. The Bank is
determined to develop incrementally a complete range of investment banking services.
- EDBI Exchange Brokerage
In line with the sharp increase in the volume of Iran’s foreign trade and gradual liberalization
foreign exchange policies by the Central Bank of Iran, the Bank has introduced a highly acclaimed
over-the-counter foreign exchange service, offering banknotes in all major and regional currencies.
- Honor Bank,
A bank in Belarus with a capital of Euro 11.5 million, which 23% of its shares belongs to
EDBI. It has of¿cially been registered on February 16, 2010.
EDBI aspires to foster its position as being the “Bank of Choice” for Iranian exporters. To
support this vision, the Bank is committed:
- To utilize advanced E-banking and other cutting-edge technology;
18
- To strengthen it’s ¿nancial base capital and improve other key ratios to maintain solid
¿nancial status;
- To expand it’s international banking network and presence;
- To maintain the highest standards of corporate governance and regulatory compliance;
- To entrench a disciplined risk and cost management culture;
- To optimize staff development through business driven trainings and pro¿t related
incentives;
- To contribute to the social and economic advancement of the communities in which it
works by providing structured ¿nance, risk management services and advice;
- To adjust proactively to new developments.
19
20
Deputy
Of¿ce of
Technology
Development
Inspection &
Internal Audit
Directorate
Deputy
of¿ce of
Logistics
Information &
Communications
Technology Center
Branches &
Marketing
Affairs
Directorate
Communications
Managing Director’s
Affairs Directorate
Legal Affairs
Directorate
International
Affairs
Directorate
Risk Management
Dept.
Human
Resources
& Logistic
Directorate
Vicepresident
Chairman &
Managing Director
Credits Affairs
Directorate
Organizational chart
Deputy
Of¿ce of
Research
Planning &
Procedures
Improvement
Directorate
Research &
Training Center
Deputy
Of¿ce of
Training
Financial
Affairs
Directorate
Security Directorate
EDBI Today
At a Glance
The Bank complies with internationally accepted standards. It is committed to safeguarding
the interests of its stakeholders. The Bank knows that transparent disclosures of its
governance helps stakeholders assess the quality of the Bank and its management and assist
them in making the best decision.
During the challenging economic times, the Bank has been fully committed to
offering services to its customers and building a foundation for growth. The Bank intends to
be uniquely positioned to extend the relationship with its customers and generate pro¿table
revenue growth.
The Bank continues to grow its businesses as conditions improve. While revenue pools
arising from lower oil price will be smaller, the Bank believes it will play a stronger role,
with market-leading positions where the Bank chooses to compete.
In addition to providing main banking products through modern computerized systems,
the Bank remains committed to offering advisory services to the customers. A major activity
across all departments of the Bank is to provide exporters and importers with comprehensive
advice on possible ¿nancing options. More details on the Bank’s performance will be found
as follows:
EDBI’s Performance
To support its strategy, the Bank has had a consistent focus on main factors: the quality
of its customer, its people and culture; and the communities in which it operates. The Bank
expanded its ability to serve certain geographic and product markets. Signi¿cant EDBI’s
achievements include:
- Trade Advisory Services and Export Promotion: The Bank contributes effectively to the
development of Iranian non-oil export within the macro framework set by the government
as the main shareholder.
A major activity across all departments of the Bank is to provide exporters and importers
with comprehensive advice on possible ¿nancing options. The Bank also assists exporters
21
in understanding trade inherent risks and in mitigation such risks by proper structuring of a
transaction, using advanced ¿nancial tools.
The customer relationship of¿cers in the branch networks have received extensive
training on multiple types of trade ¿nance driven products and can serve the customers on
case by case basis. The customers’ help-line is a permanent service of the Bank to respond
to the growing demand of customers for having access to the updated information in ¿eld of
trade and banking operations.
- Productivity and ¿nancial performance: The bank reported a net pro¿t of USD 74.92
million at the reporting date. Return On Equity (ROE) for the year under report indicates that
the Bank has been successful to make the most of the shareholder’s investment.
- Client centricity by best people: For speed, integrity, security and accuracy of
transactions, the Bank employs the state-of-the-art technology at core of its banking operations.
Hiring and appointments reÀect EDBI’s continued investment in its growth. The Bank
developed and implemented a speci¿c value proposition. As part of the Bank’s continued
efforts to improve the advisory process and to better serve clients, the Bank has established
a number of integrated programs aimed at attracting and retaining employees from a wide
variety of backgrounds ranging from apprentices and high school graduates to university
graduates and experienced professionals. Highly knowledgeable and experienced employees
are the foundation of the Bank’s success.
In this regard, the Bank enjoys a system to assess the quality of performance
measurement as a basis for determining whether the Bank’s goals and objectives are
achieved. So the performance targets are set for each management and actual performance
assessed against these on a regular basis. Reasons for underperformance are also ascertained,
and appropriate, changes made to the related compositions.
- Training and development: Improving the knowledgeable staff is one of the EDBI’s top
priorities, as it fosters their commitments and develops employees’ productivity.
- Combating terrorism ¿nancing: The Bank is fully subscribed to measures for combating
terrorism ¿nancing and implementation of Anti Money Laundering (AML) policies. Having
applied the related instructions, the Bank set itself apart by drawing up a legal and regulatory
compliance program. This includes appointing a designated compliance of¿cer, also being
the board member, to be responsible for coordinating and overseeing the AML program.
22
To track the progress and benchmark its performance, the Bank has de¿ned a set of key
performance indicators for growth, ef¿ciency and performance, as well as risk and capital to
be achieved across market cycles.
- Internal control and risk assessment: Some more formal review of internal control is
carried out by establishing on internal audit department to monitor internal control and then
summarize the reports for the board. In this line, the Bank enjoys the appropriate systems to
manage the relevant risks.
The internal audit department reviews the integrity of the systems by the use of computer
assisted audit and other techniques to ensure that access to the system is restricted to those
who should have access and to ensure that the system is producing exception reports as it
should. The use of dummy data and false passwords might be used in such an assessment.
The internal auditors also assist the Bank’s management in performing review
assignments covering, for example, human resources and treasury activities.
- Information Technology: The Bank’s information system provides relevant and reliable
information for ¿nancial and operating decisions. The core banking and trade innovation
systems facilitate retail banking and trade ¿nance services of the Bank. Online access to
bank’s accounts and instant follow-ups of all trade ¿nance transaction by customers have
been made possible. For the year under review the Information Technology Department kept
track of emerging technologies to pursue the overall IT strategy. Especially with regard to
economic environment, the attention has been paid to weigh risks and returns of the new
technologies. However, decisions have been made concerning the areas of IT that could be
carefully outsourced. Doing so was part of labor savings and cost cutting measures that the
Bank was seeking to implement as part of its IT strategy.
All member staff is provided with on-line, real-time computer systems, which present the
required information as well as soft-ware to enable the employees to provide with the best
services to the Bank’s customers.
Finding solutions for gaining control of business ¿nances, payments, internet access to
accounts also have been part of E-banking services. Additionally, mobile phone banking
readily grants all customers access to current and savings accounts, receiving last transactions
and periodic statement of accounts, paying utility bills, internet stock broking, among many
others.
23
Strategies
The Bank pursues continuous strategic change in all organizational boundaries, and
strives to adopt new strategies in ¿ve distinct ¿elds of having greater market share, enhancing
services, ¿nancial development, developing human capital and organizational growth.
As part of market development strategies, the Bank has launched a smart marketing
campaign to target the customers at each market segment and provide quality services, with
zero de¿ciency. This has facilitated so far the presence in international markets in which the
country has competitive advantage. To continue being a market player, the Bank invested
on enhancing its corporate image and positioning itself as a prime ¿nancier of Iran’s non-oil
exports both domestically and abroad.
With respect to the service development strategies, the Bank planned for optimizing the
mechanism for allocation of loans and other facilities to the customers. Besides, diversi¿cation
of services and providing technical expertise and other banking advisory services were part
of service proposition of the Bank. To facilitate the lean operations also the Bank capitalized
on expansion of modern e-banking by utilizing the state-of-the-art information technologies
for effective communication and real-time business exchanges to address the customer
demands.
Concerning ¿nancial development strategies, endeavors made to improve the ¿nancial
structure as well as the liquidity management. Therefore the risk management tools were
used and strict internal control policies implemented both on the mobilization and
allocation of resources to attain improved ¿nancial performance. In addition, to have access
to international ¿nancial resources abroad, the Bank planned for strategic alliance with partner
international banks and or other ¿nancial institutions.
As for the human capital development, the knowledge management division was set up
in the Bank to foster spread of insights and experiences in the workplace, which can be
transformed into new forms of knowledge for taking informed decision when encountering
emerging issues. Moreover, enforcing the unique role the staff members can play in moving
forward with the organizational goals is much dependent on the personal skills and expertise
of the employees. Therefore, efforts made to ensure the staff members could enhance their
personal and the job related skills and to outperform in responding to the growing customer
expectations.
24
Concerning the organizational development, the Bank invested on improving the structure,
systems, procedures, and methods in accordance with the banking industry standards.
Enhancing the management information systems was among the strategies followed in order
to ensure having integrated information systems, stringent network and information security
as part of overall organizational development goals.
Human Resources
The strategic human resource plan of the bank has been focused on recruiting and
selecting a representative and dynamic work force which can fast respond to high
customer encounter demands in financial services industry. As per figure 1, the age
structure of the human capital shows that about 72 per cent are or below 36-40 years
of age.
Figure 1- Age Structure as at 19.03.2012
51-55
1%
More than
56 years
1%
Less than
20 Years
0%
21-25
1%
Age Structure
26-30
17%
50
46-50
%
5%
Less than 20 Years 0%
21-25 1%
26-30 17%
41-45
21%
31-35
23%
31-35 23%
36-40 31%
41-45 21%
46-50 5%
36-40
31%
51-55 1%
More than 56 years 1%
Furthermore, as depicted in the ¿gure 2, about 39 per cent of employees by 19.03.2012
had a length of service between 11 to 15 years, 22 per cent between 6-10 years and 23 per
cent less than 5 years of terms of service.
25
Figure 2- Length of Service as at 19.03.2012
21-25
1%
16-20
14%
26-30
1%
More than
30 years
0%
Length of Service
Less than
5Y
Years
23
23%
11-15
5
39%
%
Less than 5 Years 23%
6-10 22%
11-15 39%
16-20 14%
21-25 1%
6
6-10
222%
26-30 1%
More thann 30 Years 0%
Therefore, the Bank developed an extensive training program to ensure that the human
resources maintain a leading edge in the competitive business of banking industry. This
included on-the-job training in forms of coaching, counseling, secondment, guided project
and action learning as well as off-the-job training inclusive of attending at seminars,
lectures, short term courses and or continuing education at other training institutions. As per
¿gures at 19.03.2012, the total number of 2,724 participants attended in 546 training courses
for about 65,244 hours. In addition the cost of training per capital in the year reported was
amounted to IRR 55 millions.
Meanwhile, to incentivize the employees, the performance review and reward scheme
in the year reported also included the performance-related-pay to reward the staff against
the performance outputs. Therefore the staff career promotions offered was based on the
principals of the equity, fairness and towards achieving the set strategic organizational goals.
Doing so enabled the staff to turnaround their careers and also achieve employability as part
of their personal development programs.
26
Major Measures Taken by EDBI in the Year ended March 19, 2012
Financial Department
Line
PLAN
1
Optimum management of resources and consumptions and providing proper coverage for foreign currency Àuctuations risk
2
Increasing activity in domestic currency (Rial) interbank market
3
Forming the desk for gold cash transaction
4
Forming the desk for gold futures contract
5
Increasing the money transactions through PAYA Portal,
6
Updating the bank’s properties software system,
7
Establishing a mechanized system for income forecast and cost estimation forms preparation,
8
Establishing a mechanized system to report monthly deviation of performance from the budget in SAFIR application
9
Establishing a mechanized system for statistics of paid house procurement facilities (principal loans paid)
10
Establishing a mechanized system for reporting bank’s branch performance (including incomes, costs, facilities and
deposits of branches)
11
Implementing appropriate solutions to develop program for calculating covariance and correlation between headings of the
accounting system in order to control the level of correlation and relation of changes within the accounts
12
Implementing proper solutions for upgrading the program for preparation of the bank’s ¿nancial statements
13
Operating modern tools for exchange certi¿cate of deposit (CD), Sokuk, bonds and or equity in order to absorb foreign
resources for execution of domestic projects and plans,
14
Planning for exchange-Rials futures transactions in order to cover the foreign exchange rate Àuctuations risk
15
Dynamic maintenance of the Bank’s foreign exchange and Rial portfolio and managing various currencies
27
International Department
Line
PLAN
1
Identi¿cation and expansion of the Bank’s monetary and ¿nancial target markets
2
Implementing the integrated settlement system for covering and timely keeping of the Nostro-Vostro accounts
3
Motivating potential customers through diversi¿cation of the services presented by credit card service providers
4
Designing a mechanism to provide reserves for the obligations resulted from issuance of foreign currency letters of
guarantee (including import and export letters of guarantee)
5
Modifying and removing the errors existing in the software system used for foreign currency letters of guarantee (TI)
6
Improving the knowledge of experts of Letters of Guarantee Division in different foreign currency areas, including
documentary credits and foreign ¿nancing in order to present proper solutions to the clients,
7
Making the international foreign currency integrated system (SAJA) operational in order to exploit the integrated database
and receive the statistical reports,
8
Maximum reduction of the effects of sanctions on international and brokerage operations of the bank
Titles of the plans:
Execution of the ad-hoc mechanisms for preserving current brokers in sanction circumstances
Establishing relations with not-sanctioned public and private banks with the goal to facilitate and expedite providing
services to the customers,
9
Funding USD 120 million for construction of 6 water treatment plants in Sudan through exporting technical and
engineering ser vices
10
Funding Euro 83 million for construction of the 400KV third power transmission line in Armenia
Department of Credit Affairs
Line
PLAN
1
Development of CBRM system
2
Execution of the plan for preparation of credit projects investigation process and the mechanism to reduce the investigation time,
3
Execution of the plan for preparation of loan granting process and a mechanism to facilitate the process
4
Development of the credit policy in different economic sections based on their ef¿ciency
5
Optimization of the bank’s facilities portfolio based on various foreign exchange rates, and short-term and long-term durations,
28
Branches and Customers’ Services Department
Line
PLAN
1
Implementing the customer satisfaction evaluation system
2
Strengthening the credit section of bank’s branches (starting concurrently with the execution of decentralization plan)
3
Feasibility study for establishing branches, desks or agency of¿ces in the regions with export potential
4
Creating and developing top-selected customers and exporters databank throughout the country
5
Strengthening the relation with export customers, by using communication channels,
6
Development of marketing infrastructures and holding specialized conferences with the exporters and providing incentives
for attracting export customers,
7
Preparing the integrated package for on-duty post of card services system for rendering appropriate services to the
customers.
8
Updating the brochures and informative packages on e-banking services
9
Equipping the branches with Queuing System in line with the bank’s assigned objectives
10
Increasing the number of POS units in line with the bank’s assigned objectives
Planning and Development Department
Line
PLAN
1
Development of the bank’s ¿ve-year plan
2
Evaluating the performance by data envelopment analysis (DEA) in branches and the Organization’s excellence procedure
(EFQM) in the head of¿ce
3
Creating, upgrading and improving the databanks reports
4
Preparing and developing the guidelines concerning the bank’s new products and services and updating the existing guidelines
5
Studying and designing new patterns in order to enable the bank to enter high technology area and ¿nancing the projects in
this area
6
Designing the pattern and program for identi¿cation of funding and investing opportunities inside and outside of the
country and development of the bank’s role in this area (outsourcing)
7
Forming the Islamic Banking Scienti¿c Association
29
Information and Communication Technology Department
Line
PLAN
1
Preparing the Bank’s IT Master Plan
2
Operating the subsystems of the bank’s integrated system (SAFIR) and presenting periodic progress reports
3
Designing and implementing the software for creating CBRM databanks
4
Development of the MIS report generating system and BI intelligent system
5
Completing the currency integrated system (SAJA)
6
Running feasibility study for improving the security in the software applications
7
Implementing a system to avoid physical handling of paper checks (CIS)
8
Development of the Customer Relationship Management System (CRM)
9
Updating the equipment of the branches’ network and hardware, as well as communication lines
Designing, creating and developing the communication networks with centers outside of the organization:
10
Ministry of Economy
Iran’s Customs Of¿ce
Informatics Services Co. (NIBN Network)
Central Bank and Credit Rating Com.
Governor’s of¿ces of the cities in which the bank has branches (Dolat Network)
Civil status registration department
11
Reviewing, securing, optimizing and developing the communication network and lines in the head of¿ce and branches
buildings
12
Operating the new email services (integration of foreign and local emails) and installation and operation of online call-theroll system in branches
13
Development of the new hardware facilities in branches and head of¿ce
Periodic inspection of branches,
Development of a network-based telephone system in branches
Updating the Asset Explorer system
Development and modi¿cation of SAFIR System, Linux plan
14
Designing and creating the bank’s data center and computer network in Abbas Abad Building
15
Designing and creating the bank’s data center and computer network in Tose’e Tower
16
Designing and creating the bank’s data center and computer network in Tabriz
17
Designing and operating the integrated information management system
Phase 1: Virtualization of the servers throughout the sites in the head of¿ce and branches
Phase 2: Installation and implementation of the SAN System
Phase 3: Designing and installation of DR system
30
Risk Management Department
Line
PLAN
1
Fundamental and technical study and analysis of the international markets for foreign currency, gold and other main
products including steel, copper and zinc,
2
Study and forecast of foreign exchange and gold future rates
3
Study and execution of bank’s liquidity risk system
Designing and implementation of integrated risk system:
4
- Study of the international patterns and standards of integrated risk system,
- Study of the IR. of Iran Central Bank’s instructions, rules and regulations with regard to integrated risk system,
- Designing and proposing the integrated risk system pattern for Export Development Bank of Iran
Execution of the e-banking risk analysis phase
5
- holding coordination meetings with the Information and Communications Technology Directorate in order to specify
the needs and expectations of the said directorate,
- Investigation and identi¿cation of the e-banking risks
- Receiving the information required for measuring the e-banking risks from Information and Communication Technology
Department
- Benchmarking and assessing the e-banking risks based on the information received
31
Performance Review
EDBI with hard work and clear vision has developed the banking expertise and knowledge
to bene¿t from the Bank’s expansion strategy to grow its business accordingly at home and
abroad.
The Bank’s endeavors to facilitate the development of the national Iranian economy and
enhance economic cooperation with foreign countries as a ¿nancial catalyst by providing
¿nancial facilities as well as other banking and advisory services to Iranian exporters of
non-oil products and their counter parties all around the world. Main goals and achievements
of the Bank include:
GOALS:
Continue to improve the customer satisfaction;
Continue to Iran’s sound economic development by providing the optimum ¿nancing
needed to boost non-oil export;
Grow the Bank revenue;
Engage with stakeholders to establish the environmental performance targets;
Continue to implementation of Anti Money Laundering (AML) policies;
Continuous training of the member staff.
32
MAJOR FUTURE PLANS WITHIN THE STRATEGIES OF EXPORT
DEVELOPMENT BANK OF IRAN
First Strategy: Development and Initiation of Diversi¿ed Banking Services and
Modern Financial Instruments and Presenting Specialized Consultations to Customers
Second Strategy: Intelligent Presence in Target Markets and Effective Interaction with
Related Organizations
Third Strategy: Organizing the Financial and Liquidity Structure and Improvement of
Risk Management System
Fourth Strategy: Regular Upgrade of the Systems, Procedures and Processes and
Matching the Organizational Structure with Them
Fifth Strategy: Strengthening the Position of Staff Members, Creating Satisfaction and
Development of Professional Ethics
Sixth Strategy: Deployment of Knowledge Management in the Organization and
Improving the Manpower Capabilities
Seventh Strategy: Improvement of Internal Control and Auditing Systems
ACHIEVEMENTS:
The Bank gained value through the perspective of its customers, and meet their needs
by providing top-quality services. Electing EDBI as the best supporter and servitor
in non-oil export sector by the related organizations for export promotion reÀects the
Bank’s success in implementing policies in line with achieving its goals.
Signi¿cant efforts to improve the Bank’s performance on rendering services to exporters
he Bank reported a net profit of USD 74.92 million at the reporting date, which
indicates its success to make the most of the shareholder’s investment.
The Bank established a new environmental performance target to achieve a reduction
in electricity, gas and water usage as well as energy consumption. Raising employee
awareness on environmental issues is another aim of the Bank.

Having applied the related instructions, the Bank set itself apart by drawing up a
legal and regulatory compliance program. In addition to inspections by the government
supervisors, the Bank has an internal audit function that assesses AML policies and
practices regularly.
33
The Human Resource Department is dedicated to continuously assist, improve, and
enhance the HR processes and activities. During the year under report, HRD trained all the
new hires and offered rotational training for all the member staff. So that improving the
knowledgeable staff at all levels is one of the EDBI’s top priorities in Achieving it’s Goals.
In the ¿rst round of Iran’s Administrative Health Management Evaluation System Process,
Export Development Bank of Iran received the special award and was introduced as the
pioneer organization in administrative health management.
Receiving ISO 10004 certificate for customer satisfaction as discerned by EU ACS
Institute; this international certi¿cate is awarded to those organizations that assess customer
satisfaction with a systematic approach and manage the customers’ complaints process.
EDBI is rated 6th in
Tier 1 capital among
the Iranian banks,
EDBI is rated 402nd
in the world in terms
of Tier 1 capital,
the world, in terms of
volume of assets,
the world, in terms of
ROA
34
Operational Review
35
Results of Operations
This Bank recognizes the complex requirements of companies involved in industries such
as manufacturing, agriculture, natural resources, construction, consulting and project
management or companies that have signi¿cant investments in offshore companies.
Based on its broad spectrum of commercial banking services offered at competitive rates,
the Bank continued to treat its customers as teachers offering them expertise and advice in
areas as diversi¿ed as:
- Trade ¿nance, to support their export and import activities by advising or issuing the
required letters of guarantee and letters of credit;
- Investment facilities, to ¿nance new projects or extensions of existing ones;
- Financing, to help customers by providing them with a fully secured line of credit for
short to long-term investments;
- Syndicated loans to industry, agriculture, tourism and new technologies; and ….
EDBI offers a range of ¿nancing solutions for Iran’s export. The Bank has been fully
committed to provide exporters with comprehensive advice on possible ¿nancing schemes.
In any exporting or importing transactions, good banking services can place on a strain on
the capabilities of customers to properly structure their transactions in order to mitigate the
risks associated with international trade and business.
The products provided by the Bank, help exporters to obtain the funds to ful¿ll export
contracts, protect against risks of buyer non-payment and enable them to offer ¿nancing to
their buyers on competitive repayment terms.
To assist export, the Bank provides guarantees, credit facilities and project ¿nance. These
products help exporters obtain the funds to ful¿ll export contracts, protect against risks of
buyer non-payment and enable them to offer ¿nancing to their buyers on competitive
repayment terms.
In addition to above instruments, payment services and bank transfers, forex operations
and commercial banking activities like current, savings and deposit accounts, debit and
credit cards, ATMs and point-of-sales operations, internet and mobile phone banking and
brokerage services are offered.
36
Treasury Services
Treasury services including correspondent banking, bank transfers, credit card, forex
operation and payment services provide integrated working capital management and treasury
solutions to the customers. Net interest income is driven from interest-bearing and
non-interest bearing deposits and other liability management products. Deposit products
provide a relatively stable source of funding and liquidity.
The Bank fully guarantees the owners of term deposits for re-payment of their placements
plus a minimum return on monthly basis. As for Gharz-al-Hassaneh (current) accounts, on
the top of the guaranteed return, a slight commission is charged for the services provided.
Under tenets of Islamic Banking in case ¿nanced activities provide a return in excess of the
guaranteed return and the accrued commissions, the excess return is shared between the
Bank and the depositors.
The customers based on their business type and activities continued to be bene¿ted from
an array of banking services like having plastic cards for their purchases at the point of
sales as well as applying for internationally acquired credit and debit cards. The substantial
increase issued local plastic cards reÀects the success of the Bank in implementing export
promotion policies in line with achieving its goals.
Trade Finance Services
The Bank’s international trade ¿nance solutions and trade experts, through the extensive
experience can advise the customers on:
- facilitating growth in foreign markets
- cost-effective methods of funding the customers’ cash Àows and working capital
- payment methods and documentation
- technology to manage the customers’ trade ¿nance transactions.
Total amount of commissions generated from trade ¿nance, treasury and other retail
banking activities as well as the growth in net income from dealing in foreign currency
contributed to a growth in operating pro¿t.
37
Letters of Credit
In line with the Bank’s goal to improve customers’ satisfaction arising from rendering
reliable services, the Bank recommends Letter of Credit as the most secure means of
conducting international trade. To maximize the ef¿ciency of L/Cs, the Bank provides a
wide variety of related services including con¿rmation, transfer and back-to-back L/Cs.
Enjoying dedicated and knowledgeable staffs well trained in trade ¿nance enable the
Bank to offer a solution for international trading companies to manage their currency
transactions more effectively. The Bank performs the L/C operations electronically to save
time and bene¿t from greater ef¿ciency in document and communication Àows.
During the year ended 19 March, 2012, 93 USD million LCs have been opened through re¿nance
& credit line mechanism.
Documentary Credits Operations in USD Million by the end of 19.03.2012
87
93
486
sight
re¿nance
usance
38
Letters of Guarantee
The Bank’s exports program provides the solution for Iranian exporters by helping their
foreign buyers obtain ¿nancing, mitigating the risk of buyer nonpayment and enabling
exporters to acquire the funds to ful¿ll export contracts.
To support these services, the Bank irrevocably commits itself to pay a certain amount of
money in case of a third party’s contractual non-performance (third party being the ordering
customer of the bank guarantee). The letters of guarantee issued by the Bank are the obligations
independent of the contractual relationship between the applicants and the bene¿ciaries.
The applicants are mainly the engineering consulting ¿rms and the exporters of technoengineering services. Almost all types of guarantees are issued against the commitments of
both the correspondent banks (Import L/G) and the customers (Export L/G).
The aggregate amount of the Bank’s letters of guarantee operations for the year under
review was amounted to USD 211 million to mainly support Iranian techno-engineering
service projects abroad.
Letter of Guarantee Operations in USD Million by the end of 19.03.2012
190
L/G Issued Against the
Customers' Commitments
1.6
19
L/G Issued Against Other
Banks' Commitments
Advised L/G
39
Credit Facility
The substantial increase in extended facilities reÀects the success of the Bank in
implementing export promotion policies in line with achieving its goals. The Bank reported
an outstanding performance during the year under review, whereby extended facilities
increased by -7.37% to reach USD 2,219.82 million as at 19.03.2012.
Additionally a large amount of projects have been ¿nanced in order to generate the future
economic value and bring about more export of goods and services of Iranian origin.
The Bank’s export program provides the solution for Iranian exporters by helping their
foreign buyers obtain ¿nancing, mitigating the risk of buyer nonpayment and enabling
exporters to acquire the funds to ful¿ll export contracts. Having the right equipment and
assets like raw material, spare parts and production line machines are crucial for the growth
of any business. The Bank provides short and long-term funding for those importers who
need facilities for manufacturing goods and services to be exported abroad.
For the time when the customers (mainly exporters) require investment funding, the
Bank’s credit facilities are the ideal answers. The Bank remains fully committed to
provide exporters and importers with comprehensive advice on possible ¿nancing schemes.
The Bank assists its customers in achieving their goals. The credit facility extended by the
Bank is a fully secured line of credit for short to long -term investment. However, it is not
designed for working capital purposes like an overdraft. The Bank helps its customers separate
working capital from investment capital and enables them to run their business smoothly
while also taking advantage of investment opportunities.
The following table illustrates the overall credit facilities extended in diferrent
currencies for the year under review as comapared to the previous year.
2010-2011
Amount
Total (Rial Billion)
Tota (Equivalent in USD Million)
40
2011-2012
Rial Billion
USD
Million
Rial Billion
USD
Million
Movement
March 12 v. March 11
12,560
1,520
14,450
1,041
-
29,381
27,215
2,834.91
2,219.82
-7.37%
-
The graphs shown below indicate the overall credit facilities extended in Iranian Rial
and US Dollar separetely to different sectors for the year under review. As it is indicated the
credit facilities in both currencies have mainly been allocated to industry sector. The other
sectors i.e. commerce and services; corp and animal husbandry;mine; constrction;
transportation; and energy have respectively obtained the next rates in taking credit facilities.
Break Down of Financial Facilities (in Iranian Billion Rial)
Allocated to Different Sectors by the end of 19.03.2012
12.879
1.146
Export
Industry & Mine
Commerce
323
Services
102
The distribution of the Bank’s loan portfolio as at 19.03.2012, over the main sectors of
the Iran’s economy, was as such:
Export
82.86%
Industry & Mine
13.83%
Commerce
2.17%
Services
1.14%
All the extended facilities (in different sectors) are in line with the Bank's strategies for
non-oil export promotion.
41
Break Down of Financial Facilities (in USD Million)
Allocated to Different Sectors by the end of 19.03.2012
789
Export
Industry & Mine
Commerce
Services
17
22
214
Export and Import Financing
The Bank intends to continue diversifying the credit portfolio and to expand extending
medium and long term credit lines as well as ¿nancing customers’ activities not only
domestically but also abroad.
The trade ¿nance transactions comprises export and import ¿nancing. In the meantime,
¿nancing falls within the categories of pre-shipment and post-shipment. With regard to
pre-shipment ¿nancing scheme, working capitals are made available to Iranian exporters for
purchase of machineries, equipments, raw materials to carry on with production, packaging,
transportation and re-exportation in as much as covering manufacturing costs.
Likewise, post-shipment ¿nancing has been a service of the Bank to enable exporters/
contractors to sell Iranian goods and services on deferred payment basis. The exporters, at
the request of buyer, receiving documentary credits on deferred payment basis have been
assisted to have their bills of exchange discounted with the Bank. The buyers of Iranian goods
and services have also been bene¿ted from the buyer’s credit agreements which are payable
out of the Bank’s own resources, Oil Reserve Fund and other export ¿nancing schemes. The
buyer’s credit line can be set up on ad hoc basis for foreign employers of major ¿nancial
projects undertaken by Iranian contractors.
42
The Bank is going to expand syndicated ¿nancing both domestically and abroad. The
Bank has already paid attention on handling transactions for the ¿nancing of selected
projects, in cooperation with domestic and foreign banks. With respect to import ¿nancing
the Bank has been providing facilities for manufacturing goods and services to be exported
abroad as well as import of raw materials, spare parts and production line machineries.
Export Financing under Buyer’s Credit Scheme
The Bank wishes to maintain a strong position in the ¿eld of foreign trade ¿nancing and
to continue to render to its customers abroad scale of products, from different range of
technology under unique mechanism of buyer’s credits.
The Iranian exporters are going to export and foreign buyers ask from the Bank to grant
the ¿nancing schemes. As an extra commercial advantage, Iranian exporters want to offer
foreign buyers a payment deferral on favorable terms as regards the interest rate and terms.
In the meantime, Iranian exporters would like to be paid immediately and de¿nitively.
The Bank offers buyer’s credit to Iranian exporters and their foreign buyers. The
characteristics of this scheme are as follows:
- A credit facility granted by the Bank directly to foreign buyers (there is a ¿nancial
contract separate from the commercial contract);
- At an attractive interest rate and with terms of between 2 and 8 years;
- With credit insurance against the risk of termination and non-payment (political and
commercial risks) offered by the national Export Credit Agency (ECA);
- With the possibility of a ¿xed interest rate for the entire duration of the credit facility
(drawdown and repayment period).
Advantage of the Scheme for Exporters
- Extra commercial argument in dealing with their buyers;
- Exporters are paid immediately;
- All negotiations with the foreign buyers on the ¿nancial aspects of the transactions are
taken care of for exporters by the Bank;
- All negotiations with the authorities are conducted by the Bank.
43
General Purpose Line of Credit
The Iranian exporters of capital goods and/or related services often stand to gain a competitive
advantage if they can offer deferred payment terms to the other parties i.e. the foreign buyers.
Contrary to traditional ¿nancing techniques, under the supplier’s credit or buyer’s credit
- whether or not these are insured by a national credit insurer, the terms and conditions can
be negotiated and ¿xed in advance, in so called general purpose line of credit agreements.
Agreements of this type allow new ¿nancing structures to be set up quickly and ef¿ciently
under the general purpose line of credit.
A general purpose line of credit is set up as a framework agreement between foreign
customers or buyers and EDBI for a speci¿c overall amount. In this agreement, the conditions
are set out for the ¿nancing of future purchase of capital goods.
Speci¿c deals can then be imputed to these agreements, which mean that they will
be ¿nanced according to the terms and conditions set out under the general purpose line of
credit. Deals can be imputed until the total amount of the general purpose line of credit is
reached, the amount can be increased if necessary.
Depending on the type of ¿nancing that is opted for, the stipulations generally correspond
to those of traditional buyer’s credit of ¿nancing, more speci¿cally as regards repayment
periods, interest rates, ¿nancial charges and the procedures to be followed.
It is self-evident that, the foreign buyers must have relations with the foreign banks with
which the general purpose line of credit are concluded. The amount of the general purpose
line of credit is usually limited.
263
Concluded
Agreements
138
Utilized
Amount
The following graphs illustrate the concluded agreements and the utilized amounts
under buyer’s credit mechanism by the 19.03.2012 (in USD Million):
0
44
10
100
1000
Import Finance and Refinance Scheme from Foreign Resources
As for ¿nancing of imports of the required goods, the Bank, as one of the sources of
¿nancing these imports continue to offer the customers to utilize the foreign credits on the
basis of general and individual credit agreement concluded with many prominent banks.
The Bank has received enormous ¿nancing and re¿nancing proposals from foreign banks
for import of raw materials, intermediary and capital goods (such as machinery and plants),
in order to provide the requirements of Iranian Buyers. The aggregate amount of the
captioned ¿nancing is USD 84 million indicating the Reduced of 58.42 % as compared to
the previous year.
In this line, the Bank attaches high importance to enhance the bilateral banking collaboration
with Islamic Development Bank (also known as IDB) which is a multinational development
¿nancing institution.
IDB as a multinational bank tries to foster the economic development and social progress
of member countries and Muslim communities in non-member countries individually as
well as jointly in accordance with the principles of Shari’ah or Islamic Jurisprudence.
In this regard, the Bank has received a credit line from the International Islamic Trade
Finance Corporation (ITFC) established pursuant to the decision taken by the Board of
Governors (“BG”) of the Islamic Development Bank (IDB).
Meanwhile, the Bank’s investment in ITFC indicates a growth in order to make more
opportunities for ¿nancing Iranian projects.
2010-2011
2011-2012
foreign Resources under Finance and Refinance Mechanism in USD Million from
2010 to 2012
0
50
100
150
200
250
45
In the wake of utilizing the foreign resources, the Bank issued 93 USD million
documentary credits under ¿nancing and re¿nancing agreements with foreign banks for the
year under review.
These adopted mechanism with the foreign banks give seller a payment assurance.
Moreover, the buyers are also assured that payments will only be released up on presentation
of stipulated documents that comply with all the terms and conditions in the documentary
credits.
46
Financi
47
Consolidated Balance Sheet
19/03/2012
20/03/2011
USD Million
USD Million
Movement %
Assets:
Cash
98.05
125.30
-22%
Due from Central Bank
204.99
545.24
-62%
Receivables from banks and credit institutes
728.75
851.42
-14%
Due from government
62.36
59.61
5%
Accounts and notes receivable
33.14
17.00
95%
Inventory of goods and prepayments
13.12
6.33
107%
123.06
276.38
-55%
Facilities granted to and receivable from nongovernmental sector
3,559.82
3,428.89
4%
Facilities granted for documentary credits and term bills of exchange
94.30
267.92
-65%
Investments and joint ventures
182.34
154.87
18%
Fixed assets
196.38
223.03
-12%
21.39
25.95
-18%
5.81
11.74
-51%
Facilities granted to and due from governmental sector
Intangible assets
Goodwill
Other assets
243.11
267.70
-9%
Total Assets:
5,566.62
6,261.38
-11%
-51%
Liabilities and Shareholders’ Equity:
Due to Central Bank
142.76
289.49
Payables to banks and credit institutes
926.15
1,102.62
-16%
34.87
5.01
596%
Accounts and notes payables
Dividend payable (40% as government’s share)
At sight deposits
Saving deposits
Term investment deposits
Other deposits
Bank’s liability for acceptance of documentary credits and term
bills of exchange
Provisions and other liabilities
Provision for staff termination bene¿ts
Provision for taxation
In-transit items
Total liabilities
Shareholders’ equity:
Capital
Legal reserve
Capital reserve
Other reserves
Surplus from reappraisal of tangible ¿xed assets
Retained earnings
Foreign exchange collections of export petty cash – transferrable
to capital
Result of changes from legal parities of foreign exchange rate
Minority interest
Total shareholders’ equity
Total liabilities and shareholders’ equity
48
11.29
43.40
-74%
780.72
918.35
-15%
50.64
105.42
-52%
1,415.37
1,249.02
13%
107.91
103.64
4%
130.44
350.58
-63%
11.55
8.83
54.83
2.80
3,678.16
22.64
8.33
35.43
3.42
4,237.35
-49%
6%
55%
-18%
-13%
1,339.20
83.37
65.76
64.02
1,584.19
84.79
77.64
75.73
-15%
-2%
-15%
-15%
0.70
0.00
-
28.58
6.50
340%
8.99
10.46
-14%
293.09
181.31
62%
4.75
3.41
39%
1,888.46
2,024.04
-7%
5,566.62
6,261.38
-11%
Financial Review
The Group achieved good results for the year under review whereby total expenses
decreased by 9% as compared to the previous year, reaching USD 202.32 million at 19
March 2012.
Major movements in asset and liability categories include:
Accounts receivable increased USD 16.14 million to reach USD 33.14 million for the
year ended 19.03.2012.
Inventory of Goods and prepayments increased USD 6.79 million to reach USD 13.12
million for the year ended 19.03.2012.
Accounts payable increased USD 29.86 million to reach USD 34.87 million for the year
ended 19.03.2012.
Term investment deposit increased to USD 166.35 million to reach USD 1,415.37 million for the year ended 19.03.2012.
The Bank achieved good results for the year under review whereby total expenses
decreased by 23% as compared to the previous year, reaching USD 153.29 million at 19
March 2012.
Furthermore, the bank reported a net pro¿t of USD 74.92 million at the reporting date
and the margin stood at 49.58%. Return On Equity (ROE) stood at 4.04% , Return On
Assets (ROA) stood at 1.36% , Return On Earning assets (ROEA) stood at 2% and Return
On Loans (ROL) stood at 6.72% indicating that the Bank was successful to make the most
of the shareholder’s investment.
The chart in next page accounts for the asset components of the Bank for the year ended
19 March 2012:
49
Asset Components of the Bank for the year ended 19 March 2012
64.18%
1.71%
5.81%
2.23%
1.13%
2.83%
12.40%
0.37%
3.72%
1.71%
3.91%
Facilities granted to and receivable from
nongovernmental Governmental Sector 64.18%
Due from Central Bank 3.72%
Investments & Joint Ventures 5.81%
Receivables from Banks and Credit institutes
12.40%
Tangible Fixed Assets 2.83%
Due from Government 1.13%
Intangible Assets 0.37%
Facilities Granted to and Due from Governmental Sector 2.23%
Other assets 3.91%
Facilities granted for Documentary Credit and
Term Bills of Exchange 1.71%
Cash 1.71%
Other deposits included prepayments paid by customers as the required collaterals for
deferred letters of credit and letters of guarantee, increased USD 4.84 million and reached
USD 107.35 million for the year under report. This was the response to the growth in
advances. Facilities extended by the Bank to governmental and non-governmental
sectors, under deferred letters of credit and term bills of exchange, also grew mainly due to an
increase in retail banking. The following graph indicates the components of shareholders’
equity for the year ended 19 March 2012:
Components of the shareholders’ equity of the Bank for the year ended 19 March 2012
86.23%
.23%
Capital 86.23%
Legal Reserves 5.26%
5.26%
Capital Reserves 4.18%
Other Reserves 4.12%
4.18%
0.21̃
0 21̃
50
4.12%
Retained earnings 0.21̃
Consolidated Financial Statements & Accompanying Notes
51
It is the Bank’s policy to provide transparent and meaningful disclosure in its ¿nancial
statements. It strives to act with integrity, responsibility, fairness, transparency and discretion
at all times in order to secure the trust of its shareholder, customers and employees, as well
as other stakeholders.
The Bank values the comments and concerns of the rating agencies, and it is one of the
Bank’s objectives to maintain and enhance the credit ratings assigned by them so one of
the Bank’s key objectives, last year, was to take concrete steps to help secure trust in the
¿nancial sector.
The information reÀected on ¿nancial statements for the Iranian calendar year ended
19.03.2012 was audited by Audit Organization and was approved on the Annual General
Meeting of Shareholders.
The reference exchange rates as per Central Bank of Iran for the year ended 19.03.2012
and the year ended 20.03.2011 were USD=RLS 12,260 and USD= RLS 10,364, respectively.
As a result, amounts in this report have been rounded to the nearest million dollars except
where otherwise is indicated.
52
INDEPENDENT AUDITOR’S REPORT
In The Name of God
TO ANNUAL GENERAL MEETING OF SHAREHOLDERS
EXPORT DEVELOPMENT BANK OF IRAN
Report on the Financial Statements
Introduction
1. We have audited the accompanying consolidated ¿nancial statements of the Group and
Export Development Bank of Iran, which comprise the balance sheets as at March
19, 2012, and the related statements of income, comprehensive income and cash Àow
statement for the ¿scal year then ended, and explanatory notes 1 to 55 to the ¿nancial
statements.
Directors’ Responsibility for Financial Statements
2. The Bank’s board of directors is responsible for preparation and fair presentation of
these ¿nancial statements in accordance with Iranian ¿nancial reporting standards. This
responsibility includes: designing, implementing and maintaining internal control
relevant to the preparation and fair presentation of ¿nancial statements that are free
from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
3. Our responsibility is to express an opinion on these ¿nancial statements based on our
audit. We conducted our audit in accordance with Iranian auditing standards. Those
standards require that we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance whether the ¿nancial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts
and disclosures in the ¿nancial statements. The procedures selected depend on the
auditor’s judgment, including the assessment of the risks of material misstatement of the
53
¿nancial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal control relevant to the entity’s preparation and fair presentation of ¿nancial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by the
Board of Directors, as well as evaluating the overall presentation of the ¿nancial
statements.
We believe that the audit evidence we have obtained is suf¿cient and appropriate to provide
a basis for our quali¿ed audit opinion.
Basis of Qualified Opinion
4. According to the Paragraph 31 of Articles of Association of Bank’s Employees Pension
and Disability Fund, the present value of future obligation of the Fund must be
calculated every three years and the de¿cit of each bank after approval of annual general
meeting of the Fund, must be ¿nanced from the budget resources of related bank. The
3-year period of actuarial calculation has been ended on March 20, 2011, but share of
Export Development Bank of Iran based on the ¿nancial calculation of the Fund for this
de¿cit has not yet been announced; existing evidence shows that provision is necessary
and the accounts must be adjusted for this purpose, however, the ¿nal amount of the
obligation must be announced by the above-mentioned Fund.
Qualified Opinion
5. In our opinion, except as discussed in the Paragraph 4, the financial statements
mentioned above, present a fair view of the ¿nancial position of the Group and Export
Development Bank of Iran on March 19, 2012, and ¿nancial performance and cash
Àows of the Group and the Bank for the ¿scal year then ended, from all material
respects, in accordance with Iranian accounting standards.
Emphasis of Matter
6. The statement received from Central Bank relating to the A/C No. 20630, as described
in note 6-3 of the ¿nancial statements shows the withdrawal of Rls. 7,248 billion and
54
the deposit of Rls. 3,987 billion (net withdrawal of Rls. 3,261 billion) for difference
of exchange rate paid to the reported bank by the Central Bank, in respect of which no
entry is made in the books of Export Development Bank of Iran. The bank protested to
such withdrawal and a series of correspondences has been made with the Central Bank
in this regard, but the ¿nal result has not been yet speci¿ed. Based on the contents of this
paragraph, our opinion has not been quali¿ed.
AUDIT ORGANIZATION
S. M. Mousavipour
B. Sadoughianzadeh
Aug. 27, 2012
(Shahrivar 6, 1391
Iranian Calendar)
55
Consolidated Balance Sheet
year ended 19.03.2012
Note
RLS million
USD million
RLS million
USD million
Assets:
Cash
5
1,202,117
98.05
1,298,560
125.30
Amounts due from Central Bank
6
2,513,233
204.99
5,650,908
545.24
7
8,934,523
728.75
8,824,096
851.42
Amounts due from Government
8
764,488
62.36
617,750
59.61
9
406,296
33.14
176,156
17.00
Inventory of goods and Down prepayments
10
160,870
13.12
65,645
6.33
11
1,508,680
123.06
2,864,391
276.38
nongovernmental sector
Facilities granted for documentary credits and term bills
of exchange
12
43,643,355
3,559.82
35,536,975
3,428.89
13
1,156,083
94.30
2,776,718
267.92
14
2,235,520
182.34
1,605,074
154.87
Tangible Fixed assets
15
2,407,653
196.38
2,311,502
223.03
Intangible assets
16
262,201
21.39
268,921
25.95
Goodwill
17
71,212
5.81
121,739
11.74
Other assets
18
2,980,573
243.11
2,774,462
267.70
68,246,804
5,566.62
64,892,897
6,261.38
Total Assets
Liabilities:
Amounts due to Central Bank
19
1,750,267
142.76
3,000,267
289.49
Payables to banks and credit institutes
20
11,354,647
926.15
11,427,523
1,102.62
Accounts and notes payables
21
427,545
34.87
51,946
5.01
Dividend payable (40% government share)
22
138,461
11.29
449,828
43.40
At sight deposits
23
9,571,629
780.72
9,517,757
918.35
Saving deposits
24
620,819
50.64
1,092,587
105.42
25
17,352,438
1,415.37
12,944,801
1,249.02
Other deposits
26
1,322,884
107.91
1,074,163
103.64
Bank’s liability for acceptance of documentary credit and
term bills of exchange
27
1,599,207
130.44
3,633,418
350.58
22.64
28
141,573
11.55
234,617
29
108,305
8.83
86,341
8.33
Tax provision
30
672,245
54.83
367,234
35.43
In-transit items
31
34,272
2.80
35,413
3,42
45,094,292
3,678.16
43,915,895
4,237.35
Total Liabilities:
Shareholders’ Equity:
Capital
32
16,418,554
1,339.20
16,418,554
1,584.19
Legal reserve
33
1,022,157
83.37
878,812
84.79
Capital reserve
34
806,205
65.76
804,707
77.64
Other reserves
35
784,916
64.02
784,828
75.73
Surplus from reappraisal of tangible ¿xed assets
8,615
0.70
0
0.00
350,398
28.58
67,385
6.50
36
110,173
8.99
108,390
10.46
37
3,593,323
293.09
1,879,109
181.31
minority interest
Total Shareholders’ Equity
38
58,171
23,152,512
4.75
1,888.46
35,217
20,977,002
3.41
2,024.03
Retained earnings
Foreign exchange collections of export petty cash –
transferrable to capital
Total Liabilities and Shareholder’s Equity:
56
68,246,804
5,566.62
64,892,897
6,261.38
Restated
Consolidated Income Statement
Year Ended 19/03/2012
Year Ended 20/03/2011
Note
Rls, Million
USD Million
Rls, Million
USD million
39
2,100,744
171.35
1,492,436
144.00
Depositors’ interests (share of pro¿t and bonus on
statutory deposit)
199,563
16.28
110,917
10.70
Administration fees for utilization of investment
deposits
(43,542)
(3.55)
(27,773)
(2.68)
Depositors’ share of pro¿t
156,021
12.73
83,144
8.02
14,400
1.17
20,971
2.02
Prepayment paid to depositors
(170,421)
(13.90)
(104,115)
(10.04)
Bank’s share of pro¿t and administration fees
1,930,323
157.45
1,388,321
133.96
A- Bank’s income from joint activities:
Pro¿t and penalty received and other joint income
Depositors’ share of profit
Surplus paid to depositors
40
B- Bank’s income from non-joint Activities
Pro¿t and penalty received
41
1,494,054
121.86
1,421,361
137.14
Commissions received
42
380,741
31.06
284,040
27.40
Other income
43
567,229
46.27
563,990
54.42
Total non-joint income
2,442,024
199.19
2,269,391
218.96
Total income
4,372,347
356.64
3,657,712
352.92
C- Expenses
Interests paid
44
(642,722)
(52.42)
(558,717)
(53.91)
Commissions paid
45
(13,791)
(1.12)
(5,165)
(0.50)
General expenses
46
(1,824,001)
(148.78)
(1,740,858)
(167.97)
Total expenses
(2,480,514)
(202.32)
(2,304,740)
(222.38)
Pre-tax income
1,891,833
154.32
1,352,972
130.54
Income tax
(779,509)
(63.58)
(593,243)
(57.24)
0
0.00
(35,799)
(3.45)
1,112,324
90.74
723,930
69.85
(16,853)
(1.37)
(14,504)
(1.40)
1,095,471
89.37
709,429
68.45
Paid as Per Item M, Para.2 of the single Article of
the Budget Act for the Year ended March 20, 2011
Net pro¿t
Minority interest from net pro¿t
Consolidated net profit
57
Consolidated Comprehensive Income Statement
RLS Million
USD Million
re-stated
RLS Million
USD Million
Net Pro¿t for the Year
1,095,471
89.35
709,429
68.45
Result of changes from exchange rate legal
parities
1,714,253
139.83
322,138
31.08
8,614
0.70
0
0.00
Comprehensive pro¿t of the ¿scal year
2,818,338
229.88
1,031,567
99.53
Prior period Adjustments
(542,733)
(44,27)
(335,729)
(32.39)
Comprehensive pro¿t recognized since the
former reporting date
2,275,605
185.61
695,838
67.14
(16,853)
(1.37)
(14,500)
(1.40)
Surplus from revaluation of tangible ¿xed assets
Minority interest from comprehensive pro¿t of
the ¿scal year
Consolidated Statement of Retained Earnings
RLS Million
Net Pro¿t
USD Million
re-stated
RLS Million
USD Million
1,095,471
89.35
709,429
68.45
610,118
49.76
467,001
45.06
(542,733)
(44.27)
(335,729)
(32.39)
67,385
5.49
131,272
12.67
1,162,856
94.84
840,701
81.12
government’s share of pro¿t)
(667,526)
(54.44)
(449,828)
(43.40)
Legal Reserves
(143,345)
(11.69)
(126,349)
(12.19)
(1,499)
(0.12)
(195,945)
(18.91)
(88)
(0.01)
(1,194)
(0.12)
(812,458)
(66.26)
(773,316)
(74.62)
350,398
28.58
67,385
6.50
24.049
1.96
15,741
1.52
Retained Earnings at the Beginning of Year
Prior Period Adjustments
Retained earnings at beginning of year-adjusted
Distributable Pro¿t
Appropriation of pro¿t:
Capital Reserves
Other Reserves
Total
Retained earnings at end of year
Retained earnings- minority interest
58
Consolidated Cash Flow
Statement
RLS Million
USD Million
re-stated
RLS Million
USD Million
Operating Activities:
Net cash inÀow from operating activities
4,970,699
405.44
4,860,130
468.94
196,786
16.05
102,903
9.93
Pro¿t paid to central bank for credit facilities
received
(232,802)
(18.99)
(182,059)
(17.57)
Pro¿t paid to Government
(978,894)
(79.84)
(406,950)
(39.27)
(8,100)
(0.66)
(4,500)
(0.43)
(1,023,010)
(83.44)
(490,606)
(47.34)
Income Tax paid (including income tax prepayment)
(473,437)
(38.62)
(1,119,941)
(108.06)
Net cash outÀow from income tax
(473,437)
(38.62)
(1,119,941)
(108.06)
Cash paid for acquisition of investments
(654,609)
(53.39)
(128,805)
(12.43)
Cash paid for acquisition of ¿xed assets
(189,052)
(15.42)
(458,362)
(44.23)
Cash paid for acquisition of intangibles
0
0.00
(200)
(0.02)
Proceeds from sale of intangibles
55,724
4.54
5,509
0.53
Proceeds from sale of ¿xed assets
35,520
2.90
20,581
1.99
Net cash outÀow from investment activities
(752,417)
(61.37)
(561,277)
(54.16)
Net cash inÀow(outÀow)prior to ¿nancing activities
2,721,835
222.01
2,688,306
259.38
0
0.00
1,000,000
96.49
(1,250,000)
(101.96)
0
0.00
0
0.00
3,967
0.38
(3,967)
(0.32)
0
0
1,783
0.14
13,299
1.28
(1,252,184)
(102.14)
1,017,266
98.15
Net cash increase
1,469,651
119.87
3,705,572
357.53
Cash balance at the beginning of year
8,809,554
718.56
5,103,982
492.47
10,279,205
838.43
8,809,554
850.00
Return on investments and pro¿ts paid on ¿nancing:
Dividend received
Pro¿t paid to minority shareholders
Net cash outÀow from return on investments
Income Tax:
Investment Activities:
Finance Activities:
Facilities received from Central Bank
Repayment of principal facilities received from
Central Bank
Borrowings from foreign banks/ ECO Bank
Repayment of facilities received from foreign
Banks/ECO Bank
Cash received from export foreign exchange
petty cash
Net cash (inÀow) outÀow from ¿nancing activities
Cash balance at end of year
59
Bank’s Balance Sheet
Note
RLS million
USD million
re-stated
RLS million
USD million
Assets:
Cash
5
1,156,008
94.29
1,295,821
125.03
Amounts due from Central Bank
6
2,513,233
204.99
5,650,908
545.24
7
8,381,019
683.60
8,481,375
818.35
8
764,488
62.36
617,750
59.61
11
1,508,680
123.06
2,864,391
276.38
nongovernmental sector
12
43,369,485
3,537.48
35,752,054
3,449.64
Facilities granted for documentary credits and term bills
of exchange
13
1,156,083
94.30
2,776,718
267.92
14
3,929,193
320.49
2,516,593
242.82
Tangible Fixed assets
15
1,909,111
155.72
1,791,223
172.83
Intangible assets
16
251,203
20.49
248,054
23.93
Other assets
18
Total Assets
2,639,697
215.31
2,782,167
268.45
67,578,200
5,512.09
64,777,054
6,250.20
Liabilities:
Amounts due to Central Bank
19
1,750,267
142.76
3,000,267
289.49
Payables to banks and credit institutes and government
20
11,242,081
916.97
11,407,523
1,100.69
Dividend payable (40% as government’s share)
22
138,461
11.29
449,828
43.40
At sight deposits
23
9,756,488
795.79
9,652,503
931.35
Saving deposits
24
768,914
62.71
1,092,977
105.46
25
17,354,119
1,415.51
12,948,059
1,249.33
Other deposits
26
1,316,057
107.35
1,062,372
102.51
Bank’s liability for acceptance of documentary credits and
27
1,588,249
129.55
3,629,968
350.25
28
124,565
10.16
214,990
20.74
29
104,531
8.53
82,860
7,99
Tax provision
30
643,480
52.49
346,340
33.42
In-transit items
31
Total Liabilities:
34,272
2.80
35,413
3.42
44,821,484
3,655.91
43,923,100
4,238.05
Shareholders’ Equity:
Capital
32
16,418,554
1,339.19
16,418,554
1,584.18
Legal reserve
33
1,002,057
81.73
864,262
83.39
Capital reserve
34
795,396
64.88
795,396
76.75
Other reserves
35
784,828
64.02
784,828
75.73
39,419
3.22
(73,892)
(7.13)
110,173
8.99
108,390
10.46
Retained earnings
Foreign exchange collections of export petty cash –
transferrable to capital
36
37
Total Shareholders’ Equity
Total Liabilities and Shareholder’s Equity:
60
3,606,289
294.15
1,956,416
188.77
22,756,716
1,856.18
20,853,954
2,012.15
67,578,200
5,512.09
64,777,054
6,250.20
Bank’s Income Statement
Restated
re-stated
Note
RLS million
39
1,656,781
135.14
1,202,228
116.00
Depositors’ interests (share of pro¿t and bonus on
statutory deposit)
199,563
16.28
110,917
10.70
Administration fees for application of investment
deposits
(43,542)
(3.55)
(27,773)
(2.68)
156,021
12.73
83,144
8.02
14,400
1.17
20,971
2.02
Prepayment paid to depositors
(170,421)
(13.90)
(104,115)
(10.04)
Bank’s share of pro¿t and administration fees
1,486,360
121.24
1,098,113
105.96
USD million
RLS million
USD million
A- Bank’s income from joint activities:
Pro¿t and penalty received and other joint income
Surplus paid to depositors
40
B- Bank’s income from non-joint Activities
Pro¿t and penalty received
41
1,437,051
117.21
1,368,854
132.08
Commissions received
42
271,699
22.16
271,010
26.15
Other income
43
352,984
28.79
455,426
43.94
Total non-joint income
2,061,734
168.16
2,095,290
202.17
Total bank’s income
3,548,094
289.40
3,193,403
308.13
C- Expenses
Interests paid
44
(629,420)
(51.34)
(554,115)
(53.47)
Commissions paid
45
(11,039)
(0.90)
(5,163)
(0.50)
General expenses
46
(1,238,820)
(101.05)
(1,509,554)
(145.65)
Total expenses
(1,879,279)
(153.29)
(2,068,832)
(199.62)
Pre-tax income
1,668,815
136.11
1,124,571
108.51
Income tax
(750,182)
(61.19)
(573,342)
(55.32)
0
0.00
(35,799)
(3.45)
918,633
74.92
515,430
49.74
Payment under Item C, Para.2 of the single Article of the
Budget Act for the Year ended March 20, 2011
Net profit
61
Bank’s Comprehensive Income Statement
re-stated
RLS Million
USD Million
RLS Million
USD Million
918,633
74.93
515,430
49.73
Result of changes from exchange rate legal parities
1,649,873
134.57
629,254
60.72
Comprehensive pro¿t of the ¿scal year
2,568,506
209.50
1,144,684
110.45
Prior period Adjustments
(542,044)
(44.21)
(271,843)
(26.23)
Comprehensive pro¿t recognized since the
former reporting date
2,026,462
165.29
872,841
84.22
Net Pro¿t for the Year
Bank’s Statement of Retained Earnings
RLS Million
USD Million
re-stated
RLS Million
USD Million
Net Pro¿t
918,633
74.93
515,430
49.73
Retained Earnings at the Beginning of Year
468,152
38.19
443,434
42.79
(542,044)
(44.21)
(271,843)
(26.23)
Retained earnings at beginning of year-adjusted
(73,892)
(6.02)
171,591
16.56
Distributable Pro¿t
844,741
68.91
687,021
66.29
Government’s share of pro¿t
(667,527)
(54.45)
(449,828)
(43.40)
Legal Reserve
(137,795)
(11.24)
(116,279)
(11.22)
0
0.00
(194,806)
(18.80)
(805,322)
(65.69)
(760,913)
(73.42)
39,419
3.22
(73,892)
(7.13)
Prior Period Adjustments
Appropriation of pro¿t:
Capital Reserve
Total
Retained earnings at end of year
62
Bank’s Cash Flow Statement
re-stated
RLS Million
USD Million
RLS Million
USD Million
6,877,251
560.95
5,264,211
507.93
30,808
2.51
16,715
1.61
Interest paid to Central Bank for facilities
received
(232,802)
(18.99)
(182,059)
(17.56)
Pro¿t paid to Government
(978,894)
(79.84)
(406,950)
(39.27)
(1,180,888)
(96.32)
(572,294)
(55.22)
Income Tax paid
(453,043)
(36.95)
(1,110,515)
(107.15)
Net cash outÀow from income tax
(453,043)
(36.95)
(1,110,515)
(107.15)
(1,019,630)
(83.17)
(7,400)
(0.71)
(962,069)
(78.47)
(383,059)
(36.96)
0
0.00
(200)
(0.02)
24,427
1.99
8,805
0.85
Net cash outÀow from investment activities
(1,957,272)
(159.65)
(381,854)
(36.84)
Net cash inÀow prior to ¿nancing activities
3,286,048
268.03
3,199,548
308.72
0
0.00
1,000,000
96.49
(1,250,000)
(101.96)
0
0
0
0.00
3,967
0.38
(3,967)
(0.32)
0
0
1,783
0.15
13,299
1.28
(1,252,184)
(102.13)
1,017,266
98.15
2,033,864
165.90
4,216,814
406.87
Operating Activities:
Net cash inÀow from operating activities
Return on investments and interest paid on ¿nancing:
Dividend received
Net cash outÀow from return on investments
Income Tax:
Investment Activities:
Cash paid for acquisition of investments
Cash paid for acquisition of tangible ¿xed assets
Cash paid for acquisition of intangibles
Proceeds from sale of tangibles
Finance Activities:
Repayment of principal facilities received
from Central Bank
Borrowings from foreign banks /ECO Bank
Repayment of facilities received from
foreign Banks/ECO Bank
Cash received from export foreign
exchange petty cash
Net cash inflow (outflow) from financing
activities
Net increase in cash
Cash balance at the beginning of year
Cash balance at end of year
Non-cash transaction
8,555,005
697.79
4,338,191
418.58
10,588,869
863.69
8,555,005
825.45
730,464
59.58
998,685
96.36
63
Notes to Financial Statements
1. Bank’s History
1.1 Generalities
The Group consists of Export Development Bank of Iran (the parent company) and its
subsidiaries including Arman Economic Leaders Group Co. (Private Joint Stock), Export
Development Exchange Co. (Private Joint Stock), and Development International Bank
(Venezuela). Export Development Bank of Iran was established on November 24, 1991,
pursuant to Resolution of July 10th, 1991 of Extraordinary General Assembly of the Banks
and registered with Department for Registration of Companies under Reg. No. 86936. The
bank is based in Tehran, Iran.
1.2 Bank’s Main Activity
According to the provisions of Art. 3 of its Articles of Association, which include 12
paragraphs and one note, the most important activities of the Bank are: to carry out bank
operations within the provisions of Usury-Free Banking Operations Act (enacted in August
30, 1983) that includes granting facilities in domestic (Rials) and foreign currencies with
regard to exports, to perform agency operations, to finance out of credit lines and to
issue letters of guarantee and to engage in other related banking operations. The subsidiaries
mainly operate in banking, investment and production.
1.3 Number of Branches
At the end of the reporting year, the Bank has 38 branches throughout the country (3
branches in free zones and 35 branches in other parts of the country), and one agency in
Kazakhstan (that started its activity in 2003).
1.4 Employees
The average number of permanent and temporary employees, during the year, is as follows:
Group
Bank
Year Ended
19/03/2012
Year Ended
20/03/2011
Year Ended
19/03/2012
Year Ended
20/03/2011
Permanent employees
1,612
1,314
1,020
1,048
Temporary employees
201
129
145
120
1,813
1,443
1,165
1,168
Total
64
2- Basis of Financial Statements Preparation:
The consolidated ¿nancial statements of the Group and Export Development Bank have
been basically prepared at historical cost basis and, when deemed advisable, current values
have been also used in accordance with Iranian Accounting Standards.
Depositors’ Share from Joint Profit
In execution of Usury Free Banking Operations Act, enacted on August 30, 1983, and
the executive bylaws and guidelines thereof, and with reference to Circular No. MB/1799
dated January 8, 2004, issued by Central Bank of the Islamic Republic of Iran, income from
the activities related to granting of ¿nancial facilities, investment in shares and participating
bonds, which are recognized within the accounting practices implemented by the Bank, are
considered as joint income with depositors and the depositors’ share is determined according
to the application of their net resources in the said activities on pro rata basis.
3- Basis of Consolidation
3-1 The consolidated ¿nancial statements are the result of the aggregated ¿gures of the
¿nancial statements of Export Development Bank of Iran and the subsidiaries, being subject
to consolidation, after write-off of the inter-group transactions and balances as well as
unrealized pro¿t and loss resulting from the inter-group (inter-corporate) transactions.
3-2 Regarding the af¿liated companies acquired over the period, the results of their operations
are charged into consolidated income statement as of the date their control has been effectively
transferred to the Bank, and in case of the transferred subsidiary companies, the results of their
operations are charged into the consolidated income statement, by the transfer date.
3-3 The ¿scal year of Development International Bank (Venezuela) ends at December
31st, of each year and ¿nancial statement of afore-mentioned bank at the same date is
consolidated with other statements of the Group and any post balance sheet event up to the
date of ¿nancial statement preparation which has material effect on consolidation, would be
adjusted on ¿nancial statement of Development International Bank (Venezuela).
3-4 Arman Economic Leaders Group Company (Private Joint Stock), Development Bank
of Venezuela and Export Development Exchange Co. (Private Joint Stock), have been
consolidated in to the bank.
65
4- Significant Accounting Policies
4-1 Inventory of Goods and Materials
Inventory of goods and raw materials of Dasht Neshat Co. (a subsidiary) is valued at the
lower of cost and net realizable value of every individual item. In case the cost exceeds net
realizable value, the difference is recognized as provision for diminution in value of inventory.
The cost of inventories is determined by using the following methods:
Method Used
Raw materials and packing materials
Moving - Average
Work in progress
Weighted average
Finished goods
Weighted average
Spare parts and accessories
Moving-Average
4-2 Investments
Measurement:
Group Consolidation
Bank
Long-term investments:
Investments in subsidiaries subject to
consolidation
Investment in associates
Other long-term investments
Cost (less provision for impairment in value
of investments)
Cost (less provision for impairment in value
Equity method
of investments)
Cost (less provision for impairment Lower of cost and net realizable value of
in value of investments)
aggregated investments
Subject to Consolidation
Income Recognition:
At the time of approval of pro¿t by general
meeting of the capital investee’s shareholders
(by the date of approval of ¿nancial statements)
Investment in subsidiaries subject to
consolidation
Subject to consolidation
Investment in subsidiaries excluded from
consolidation
At the time of approval of pro¿t by
general meeting of the capital inmeeting of the capital investee’s shareholders
vestee’s shareholders (by the date
of approval of ¿nancial statements)
Investment in associates
Equity method
Other long-term investments and current
investments
At the time of approval of pro¿t
by general meeting of the capital
investee’s shareholders (by
balance sheet date)
(by balance sheet date)
66
4-3 Tangible Fixed Assets
4-3-1 Tangible ¿xed assets are recorded at cost basis. The expenditures incurred for
improvement and major repair costs that will substantially enhance the useful life of ¿xed
assets or will fundamentally improve the output quality, are regarded as capital expenditures
and will be depreciated over the remaining useful life of related assets. Minor and ordinary
repair expenditures which made to maintain plant assets in standard operating condition, are
charged to an expense account in the period in which they are incurred on the basis that it is
the primary period bene¿ted.
4-3-2 At the end of the year ended March 20, 2005, and in execution of Art. 62 of 3rd
Development Plan Act, the Bank’s land and building were recorded in the accounts at
the revalued price at the amount of Rls. 786 billion. Surplus from such reevaluation at the
amount of Rls. 451 billion was charged to the account for Increase of Government’s Capital
in the Bank, in accordance with minutes of the meeting No. 460 of the Bank’s extraordinary
general meeting.
4-3-3 Tangible ¿xed assets are depreciated in accordance with the Table of Depreciations and
Amendment to Direct Taxation Act of 16/02/2002, based on the following rates and methods:
Assets
Depreciation Rate
Depreciation method
7%
Declining- balance
5 & 10 years
Straight line
Telecommunications equipments and devices
10 years
Straight line
Of¿ce PCs
3 years
Straight line
Fittings
10 years
Straight line
Vehicles
3 & 5 years
Straight line
Installations
10% & 12% and 10 and 15 years
Declining-balance / Straight line
Machinery
10% and 10 & 15 years
Declining-balance / straight line
Machine tools
4 years
Straight line
Goodwill
20 years
Straight line
Building*
Of¿ce furniture
* The depreciation rate of revalued buildings was calculated as 3.5% and the depreciation rate for other issues
is calculated as 7%.
67
4-4 Bank’s Business Location Goodwill
In execution of the provisions of Art. 62 of the Development 3rd Plan Act, the Bank’s
business units’ goodwill has been recorded in the books at the reappraisal price. In addition,
since due to the Resolution passed by Monetary and Credit Council at their 1077th meeting,
the Banks’ assets are depreciated according to the Table of Depreciations, subject of Art. 151
of Direct Taxation Act, no depreciation is calculated for goodwill.
4-5 Revenue Recognition
As of the year ended March 20, 2005, and in compliance with accounting standards, all
revenues of the Bank have been calculated and reÀected in the accounts on accrual basis.
4-6 Foreign Currency Translation
Foreign exchange monetary items of the Bank (parent company) are translated at the
market rate prevailing on balance sheet date (inter-bank market reference rate, announced
by the Central Bank of the Islamic Republic of Iran on daily basis) and foreign exchange
non-monetary items are converted at the market rate on the transaction date.
According to the Paragraph 136 of Public Accounts Act, translation differences of assets
and liabilities in foreign currencies are recorded in a reserve account for this purpose which
is categorized under stockholders’ equity. When the balance of afore-mentioned reserve
account gets debit at the end of ¿nancial period, it would be brought to income statement.
Also, the result of foreign currency translation during the period would be shown on the
comprehensive income statement.
Total assets and liabilities of Development International Company (Venezuela) are translated
at the exchange rate on balance sheet date and expenses and revenues are translated at average
exchange rate during the year. Translation difference is recorded in shareholders’ equity.
4-7 Provision for Doubtful debts
Pursuant to Directive No. MB/2823 dated 24.02.2007 issued by Department for Banking
Studies and Regulations of the Central Bank of the Islamic Republic of Iran, that was approved
by Monetary and Credit Council at their 1074th and 1077th meetings dated 30/12/2006 and
17/02/2007, respectively, the provision for doubtful debts is calculated and recorded to the
accounts as it follows:
68
Except the balance of the facilities for which special reserve has been provided, a General
Reserve equal to 1.5% of the total balance of facilities is provided in the accounts.
Special reserve is calculated for the balance of the facilities of overdue, deferred and
doubtful classes, after incorporating the value of the clients’ collaterals and redemptions
by ¿nancial statements preparation date and the possibility for collecting receivables as
described in the following table:
Provision Rate (%)
Facilities of overdue class
10
Facilities of deferred class
20
Facilities of doubtful class, between 1.5 to 5 years
50
Facilities that 5 years or more have passed from
the date their principal and interests became due
100
4-8 Provision for Staff Termination Benefits
According to Articles 40 and 45 of Employment Code of Governmental Banking System,
the Resolution No. H24174T/57529 passed by cabinet meeting dated 02/03/2001, the provision
for staff termination bene¿ts, in the banks and the Group’s companies, is calculated and
recorded in the book of accounts for all employees on the basis of one month’s latest salary
and bonus for each year of their service records.
4-9 Classification of Bank’s Assets
In accordance with Directive No. MB/2823 dated 24.02.2007 issued by Department for
Banking Studies and Regulations of the Central Bank of the Islamic Republic of Iran, that
was approved by Monetary and Credit Council at their 1074th and 1077th meetings dated
30/12/2006 and 17/02/2007, respectively, the facilities granted by the Bank are classi¿ed
under one of the following classes:
1.
2.
3.
4.
Current class
Overdue class
Deferred class
Doubtful class
69
4-10 Post-Employment Obligations
Present value of post-employment obligations related to employees’ years of service
(includes: working employees, retired employees and annuitants, who are subject to pension
plan), is determined based on actuarial calculation, with regard to latest correspondence with
the Fund, the Bank has no obligation to the Fund at the date March 20, 2011.
4-11 Due from Government
The assigned facilities granted under the guarantee of former Management and Planning
Organization, are classi¿ed as due from government if the following criteria are ful¿lled:
A. The granted facilities are deferred because of borrower’s inability to repay the same,
insuf¿ciency of the related securities or ineffectiveness of the Bank’s measures to collect
the same,
B. Overdue facilities granted, related to execution of the projects for acquisition of capital
assets,
C. Facilities granted to the Ministries and Governmental Institutes
5- Cash
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Cash balance in domestic currency (Rials) (5-1)
21.02
25.09
17.31
25.05
Cash in foreign currency (5-2)
77.03
100.21
76.98
99.98
98.05
125.30
94.29
125.03
Total
Cash balance is kept with central treasury of the bank and with the bank’s branches and
has been counted at the end of the year ended March 19, 2012.
5.1 Cash balance in Rials and cash balance in foreign currency are insured against ¿re and
theft by Rls. 717,000 million and $123 million, respectively.
5.2 At the end of the ¿scal year (March 19, 2012), cash balance in foreign currency
includes USD 43 million and €25 million.
70
6. Amounts Due from Central Bank
Group
19.03.2012
USD million
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Statutory deposit (6-1)
42.04
38.39
42.04
38.39
Current Accounts with Central Bank (6-2)
77.45
206.95
77.45
206.95
Receivables from Central Bank
0.00
1.94
0.00
1.94
Foreign exchange at- Sight deposits with Central
Bank
85.50
297.96
85.50
297.96
Total
204.99
545.24
204.99
545.24
6.1 As per circular No. NB/384 dated 11/07/2001, the rate of the statutory deposit is 10%
and at the end of the year ended March 19, 2012, the amount of Rls. 4,615 million has been
paid to this bank by the central bank, based on the rate of statutory deposit bonus as being
1% on average.
6.2 In view of the necessity for establishing internal settlement network for foreign
exchange transactions related to the obligations between Iranian banks (subject of letter No.
1799/AH/AB dated 03/02/2007), the bank’s related transactions are recorded in this account.
7. Receivables from Banks and Credit Institutes
Group
19.03.2012
USD million
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Current accounts with banks
12.82
29.16
4.76
12.62
Sight foreign exchange deposits with local banks
57.91
151.02
43.73
151.56
Sight foreign exchange deposits with foreign banks
546.59
297.36
536.33
289.07
Term foreign exchange deposits with local banks
52.25
46.01
39.96
46.01
Term foreign exchange deposits with foreign banks
21.62
276.84
21.62
276.84
7.57
0.88
7.57
0.88
29.63
41.37
29.63
41.37
0.36
8.78
0.00
0
728.75
851.42
683.60
818.35
Inter-bank account
Payment of the checks issued by other banks
Term deposits with local banks
Total
71
8. Amounts Due from Government
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
62.36
59.61
62.36
59.61
Rls. 742,972 million of the above ¿gure pertains to the redemption of the participating
bonds of Ministry of Economy and Finance on due dates and with reference to letter No.
MB/395 dated 18/05/2005 issued by Central Bank of the Islamic Republic of Iran (subject
of deferred pro¿t of note-stipulated facilities, guaranteed by the government), the remaining
balance is the government’s share of pro¿t calculated and recorded in the accounts.
9. Accounts and notes Receivable
Group
19.03.2012
USD million
Provision for doubtful debts
Total
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
33.14
18.06
0
0
0.00
(1.06)
0
0
0
0
33.14
17.00
10. Inventories of Goods and Down Prepayments
Group
Inventories of goods and down
prepayments
72
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
13.12
6.33
0
0
11. Facilities Granted to and Due from Governmental Sector
Group
19.03.2012
USD million
Facilities granted in Rials
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
11.20
11.78
11.19
11.78
123.06
292.33
123.06
292.33
Interest receivable
3.11
6.32
3.11
6.32
Penalty receivable
0.03
0.01
0.03
0.01
137.40
310.44
137.40
310.44
Coming years’ interest of facilities in Rials/
governmental
(1.70)
(2.29)
(1.70)
(2.29)
Coming years’ interest of facilities in foreign
currency/ governmental
(5.88)
(15.41)
(5.88)
(15.41)
Provision for general doubtful debts
(1.95)
(4.30)
(1.95)
(4.30)
Provision for special doubtful debts
(1.22)
(3.91)
(1.22)
(3.91)
Advances received from customers for other
governmental facilities
(3.59)
(8.15)
(3.59)
(8.15)
(14.34)
(34.06)
(14.34)
(34.06)
123.06
276.38
123.06
276.38
Facilities granted in foreign exchange
Total
Less:
Total
Grand Total
73
12. Facilities Granted to and Receivable from Nongovernmental Sector
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Facilities granted in Rial
1,034.11
1,043.51
1,018.79
1,075.86
Facilitiesgranted in foreign currency
2,536.27
2,416.43
2,536.28
2,416.43
9.45
14.33
0.00
0
100.99
113.25
100.99
113.25
Debtors for letters of guarantee paid
1.54
1.71
1.54
1.71
Loans paid to other banks
0.49
0.58
0.49
0.58
Interest receivable
179.89
152.13
179.89
152.13
Penalty receivable
25.04
16.68
25.04
16.68
3,887.78
3,758.62
3,863.02
3,776.64
(59.62)
(52.33)
(59.62)
(52.33)
(0.51)
0.00
(0.51)
0
(64.84)
(82.08)
(64.84)
(82.08)
(0.44)
(1.11)
(0.44)
(1.11)
Provision for general doubtful debts
(51.84)
(51.20)
(51.84)
(51.20)
Provision for special doubtful debts
(150.71)
(143.01)
(148.29)
(140.28)
Total
(327.96)
(329.73)
(325.54)
(327.00)
3,559.82
3,428.89
3,537.48
3,449.64
Facilities granted by overseas branches
Debtors for L/Cs paid
Total
Less:
Coming year’s interest of facilities granted/
nongovermental
Coming years’ interest and commission
Coming years’ interest of facilities in foreign
currency/nongovermental
Deferred interest of facilities granted in foreign
currency/nongovermental
Grand Total
74
13. Facilities granted for documentary credits and term bills of exchange
Group
19.03.2012
USD million
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Receivables for documentary credits and term
bills of exchange in Rials. / non-governmental
2.12
0.33
2.12
0.33
Receivables for documentary credits and term
bills of exchange in foreign currency/ nongovernmental
127.45
162.77
127.45
162.77
0.00
187.12
0.00
187.12
Total
129.57
350.22
129.57
350.22
Advances received from customers for
documentary credits and term bills of exchange
(33.24)
(77.05)
(33.25)
(77.05)
(2.03)
(5.25)
(2.02)
(5.25)
(35.27)
(82.30)
(35.27)
(82.30)
94.30
267.92
94.30
267.92
Receivables for documentary credits and
term bills of exchange in foreign currency/
governmental
Provision for doubtful debts
Total
Grand Total
75
14. Investments and Joint Ventures
Group
Bank
Year Ended
19/03/2012
USD million
Year Ended
20.03.2011
USD million
Year Ended
19.03.2012
USD million
Year Ended
20.03.2011
USD million
0.00
0.00
39.74
47.01
Mehr-Iran Interest Free Bank
11.75
13.89
11.75
13.89
Iran-Venezuela Joint Bank (in Iran)
93.28
101.37
82.98
98.16
3.00
3.55
3.00
3.54
108.03
118.81
137.47
162.60
Export Development Exchange Co.
0.00
0.00
3.43
4.05
Parsilon Co.
0.02
0.02
0.02
0.02
Dasht Neshat Co.
0.00
0.00
0.00
42.21
Iran Credit Ranking Consulting Co.
0.15
0.18
0.15
0.18
Islamic Trading Finance Co. (ITFC)
19.54
23.12
19.54
23.12
Deferred Receivables Organization Co.
0.08
0.10
0.08
0.10
Banks’ Extra Properties Sale Co.
0.16
0.19
0.16
0.19
Export Development Nongovernmental R&D Fund
0.16
0.47
0.16
0.19
Higher Institute of Banking
0.44
0.52
0.44
0.52
20.39
0.00
20.39
0.00
Arman Economic Leaders Group Co
0.00
0.00
138.66
19.31
Pardakht Card Electronic Co.(SHAPARAK)
0.01
0.00
0.01
0.00
Other Companies
33.38
11.48
-
0.00
Total legal partnership
74.33
36.08
183.04
89.89
182.36
154.89
320.51
252.49
-0.02
-0.02
-0.02
-9.67
182.34
154.87
320.49
242.82
Company
A) Direct investment:
Development International Bank (Venezuela)
Belarus Joint Bank
Total direct investment
B) Legal partnership:
Omid Finance Co.
Total
Provision for impairment share value
Grand Total
76
14.1 Development International Bank (Venezuela) started its activity on 13/12/2008 with
a capital of €13.65 million, equal to Rls. 173,515 million in Caracas and its ¿scal year ends
on 31st of December each year.
14.2 Iran-Venezuela Joint Bank (in Iran) started its activity in Tehran on Jan. 25, 2010
with a joint capital of USD 200 million (equally shared by Iran and Venezuela).
14.3 According to minutes of the meeting dated Sept. 16, 2008 of the Admission Board
of the Exchange Organization, Parsilon Co. left the Stock Exchange and Securities
Organization. In addition, the provision for impairment of the value of Parsilon’ Share is
Rls. 220 million.
14.4 Capital of Islamic Trade Finance Int’l Co. (ITFC) is totally USD 3 billion and it
was agreed that USD 25 million of the said capital to be ¿nanced by Export Development
Bank of Iran. By the balance sheet date, the total amount has been paid by the Bank through
installments. Also the company’s shares consist of 300,000 shares of 10,000 USD each, and
the bank’s share is 2500 shares equal to 0.83% of the company’s total portfolio.
14.5 Other companies include Easternship Co., Aria Zigorat Tourism Development Co.,
Moallem Insurance Co., Cultural Heritage and Tourism Investment Co., Tose Peyman Tejarat
Paydar International Co., Farasat Technical and Engineering Services Co., Noor-al-Badr
Co., Armehno Projects Development Management Co., GT KAREN Co., Holding Global
Co., Qeshm Investment Co., Asiaye Aram Co., Securities Excahnge Co., Central Exchange
Depository Co., Iran Fara-Bourse Co. Sarouj International CO., and Sa¿ran Iran Company.
77
15. Tangible Fixed Assets
Description
Group
Carrying Amount
Balance on
20/03/2011
19/03/2012
(Restated)
Bank
Carrying Amount
Balance on
20/03/2011
19/03/2012
(Restated)
Immovable properties-lots of land
90.02
101.22
80.12
91.09
Immovable properties-building
57.44
72.24
52.04
64.16
147.46
173.46
132.16
155.25
Movable properties-vehicles
0.59
0.39
0.06
0.09
Movable properties- computer
1.02
1.26
0.99
1.20
Telecommunications equipment and devices
0.11
0.15
0.11
0.15
21.76
27.68
0.00
0.00
Movable properties- of¿ce furniture
3.29
3.18
2.26
2.57
Movable properties- security deposits
0.61
0.70
0.60
0.70
Movable properties- ¿ttings
1.45
3.87
0.85
0.52
General store-furniture and computer
0.09
0.07
0.09
0.07
Total of movable properties
28.92
37.30
4.96
5.30
Immovable properties- under construction
19.70
11.98
18.35
11.98
Capital prepayment- immovable
0.24
0.23
0.18
0.22
Capital prepayment- movable
0.06
0.07
0.07
0.07
196.38
223.03
155.72
172.83
Total immovable properties
Machinery
Grand Total of Fixed Assets
16. Intangible Assets
Group
Total
78
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
21.39
25.95
20.49
23.93
17. Goodwill
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Opening balance
9.93
11.74
0.00
0.00
Opening acquired over the year
5.91
0.00
0.00
0.00
Goodwill of subsidiaries transferred
(9.85)
0.00
0.00
0.00
Goodwill amortization
(0.18)
0.00
0.00
0.00
5.81
11.74
0.00
0.00
Total
18. Other Assets
Group
Total
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
243.11
267.70
215.31
268.45
19. Amounts Due to Central Bank
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
142.76
289.49
142.76
289.49
79
20. Payables to Banks, Credit Institutes and Government
Group
19.03.2012
USD million
Current interest free deposit of non-banking
credit institutes
Sight exchange deposits of Iranian banks
Due to Government
Liability to foreign banks for foreign exchange
loans
Liability for facilities received from foreign
exchange reserve fund
Facilities received from banks
Total
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
0.00
0.29
0.00
0.29
122.28
307.62
122.28
307.62
65.97
71.87
65.97
71.87
0.00
0.38
0.00
0.38
728.72
720.53
728.72
720.53
9.18
1.93
0
-
926.15
1,102.62
916.97
1,100.69
20.1 According to Letter No. AB/HA/1799 dated 3 Feb. 2007, including the necessity
for creating a Foreign Exchange Transaction Interbank Settlement System, the banks have
opened accounts with each other in various currencies.
20.2 The above ¿gure is inserted in respect of the facilities under Para. H, Note 2 of the
Budget Act for the year ended March 20, 2006.
21. Accounts and Notes Payable
Group
Accounts and notes payable
80
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
34.87
5.01
0
0
22. Dividend Payable (40% as Government’s Share of Profit)
Group
19.03.2012
USD million
Balance at beginning of the year
Paid to the government during the year
Dividend payable
Advance paid to the government over the year
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
36.69
0.58
36.69
0.00
(36.69)
0.00
(36.69)
0.00
54.45
43.40
54.45
43.40
(43.16)
(0.58)
(43.16)
0.00
11.29
43.40
11.29
43.40
23. At Sight Deposits
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Current interest free deposit in Rials
156.11
133.90
158.87
134.38
Current interest free deposit in foreign currency
347.00
331.61
335.56
322.69
19.98
60.14
19.98
60.15
0.00
9.65
0.00
9.65
35.61
32.92
35.61
32.92
Money orders drawn up on us/ Rials
0.00
0.00
0.00
0
Unclaimed balances in Rials
0.34
0.41
0.34
0.41
Unclaimed balances in foreign currency
0.37
0.40
0.37
0.40
147.30
171.83
147.30
171.86
74.01
177.49
97.76
198.89
780.72
918.35
795.79
931.35
Sight foreign exchange deposits of foreign
banks
Managed funds unused
Different bank checks sold
Short-term payables in Rials *
Short-term payables in foreign currency
Total
81
24. Saving deposits
Group
Saving interest-free deposit/Rials
Saving interest-free deposit/foreign currency
Total
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
7.50
9.58
7.50
9.58
43.14
95.84
55.21
95.88
50.64
105.42
62.71
105.46
25. Term Investment Deposits
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
288.19
441.29
288.19
441.29
Long-term investment deposit/Rials
82.89
86.01
82.99
86.01
Short-term investment deposit/Rials
104.31
51.83
104.35
51.86
Special short-term investment deposit/Rials
3.34
3.43
3.34
3.43
Term exchange deposit with central bank
848.25
638.01
848.25
638.01
Term exchange deposit with foreign banks
66.32
0
22.07
28.45
Term exchange deposit with Iranian banks
22.07
28.45
66.32
0.28
1,415.37
1,249.02
1,415.51
1,249.33
Term exchange deposits
Total
82
26. Other Deposits
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Advances received from customers for L/Cs in
foreign currency/governmental
3.18
42.58
3.18
42.58
Rials/nongovernmental
0.16
0.67
0.16
0.67
Rials/nongovernmental
109.60
99.70
109.04
98.69
Advances received from customers for domestic
L/Cs -nongovernmental
0.53
3.84
0.53
3.84
Cash deposit of letters of guarantee in Rials/
governmental
0.01
0.01
0.01
0.01
Cash deposit of letters of guarantee in Rials/
nongovernmental
16.66
21.47
16.66
21.54
Cash deposit of letters of guarantee/foreign
currency
5.52
5.72
5.52
5.72
Other deposits/deposit under Art. 65 (local
creditors)
5.50
6.50
5.50
6.50
Other advances received from customers
0.00
0.19
0.00
0.00
141.16
180.68
140.60
179.55
Advances received from customers for L/Cs and
(33.25)
(77.04)
(33.25)
(77.04)
Grand Total
107.91
103.64
107.35
102.51
Total
Less:
26.1 The a/m deposit at the amount of Rls. 67,400 million has been allocated by the
Central Bank according to the provisions of Art. 65 of the Law Regulating Part of the
Government’s Financial Regulations for granting credence for export of technical and
engineering services during the year (ended March 20) 2003 through the year (ended
March 20) 2005.
26.2 According to Circular No. MB/1211 dated 03/02/2002 issued by Central Bank of
the Islamic Republic of Iran, in order to avoid inÀation in the entries of the bank’s balance
sheet, the same amount as those received from the customers for documentary credits and
term bills of exchange has been deducted from the account of “other deposits”, and written
off with the related accounts receivable (Note 13).
83
27. Bank’s Liability for acceptance of documentary credits and term bills
of exchange
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Facilities received from foreign banks for
internal usances
68.77
243.18
68.77
243.18
Bank’s liability for acceptance of documentary
credits and term bills of exchange
61.67
107.40
60.78
107.07
130.44
350.58
129.55
350.25
Total
28. Provisions and Other Liabilities
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Provision for deferred expenses
8.84
11.25
7.85
10.39
Provision for leave redemption
1.83
1.76
1.83
1.76
Other
0.88
9.63
0.48
8.59
11.55
22.64
10.16
20.74
Total
29. Provision for staff termination benefits
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Opening balance
6.85
6.31
6.76
6.05
Paid during the year
0.15
(0.16)
(0.01)
(0.03)
(0.11)
0.01
0.00
0.01
1.94
2.17
1.78
1.96
8.83
8.33
8.53
7.99
Collected during the year
Provision provided during the year
Closing balance
84
30. Tax Provision
Movement of the Group’s
tax provision is as follows:
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Opening balance
29.95
7.58
28.25
6.83
Provision for income tax of the year
63.59
1.81
61.19
0.00
Provision for income tax of preceding yearsadjusted
(0.09)
71.28
0.00
15.90
(11.65)
(0.60)
(9.98)
55.32
81.80
80.07
79.46
78.05
(26.97)
(44.64)
(26.97)
(44.63)
54.83
35.43
52.49
33.42
Paid during the year
Total
Tax prepayments
Total
31. In-Transit Items
Group
19.03.2012
Debit
USD million
20.03.2011
Debit
Debit
USD million
USD million
Debit
USD million
Local debtors in Rials
2.72
-
12.22
-
Branches’ account for governmental deposits
(representation)
0.93
-
0.86
-
Current interest-free deposit of governmental
institutes represented by Central Bank
-
1.17
-
13.07
Local creditors in Rials
-
5.28
-
3.43
3.65
6.45
13.08
16.50
Total
Closing Balance
2.80
3.42
Bank
19.03.2012
Debit
USD million
Debit
USD million
20.03.2011
Debit
Debit
USD million
USD million
Local debtors in Rials
2.72
-
12.22
-
Branches’ account for governmental deposits
(representation)
0.93
-
0.86
-
Current interest-free deposit of governmental
institutes represented by Central Bank
-
1.17
-
13.07
Local creditors in Rials
-
5.28
-
3.43
3.65
6.45
13.08
16.50
Total
Closing Balance
2.80
3.42
85
32. Capital
The Bank’s capital at the amount of Rls. 16,418,554 million, totally owned by the
Government of the Islamic Republic of Iran, consists of 1,641,855,449 shares of Rls. 10,000
par value.
According to Circular No. M75MN dated 18/04/2004 of Central Bank of the Islamic
Republic of Iran, the Tier1 capital and the Bank’s capital adequacy ratio for the year ended
March 19, 2012 are Rls. 21,755,724 million and 33.49%, respectively. (year ended March
20, 2011: Rls. 20,340,353 million and 33.22%, respectively)
33. Legal Reserve
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Opening balance
71.68
72.60
70.49
72.17
Provided during the year
11.69
12.19
11.24
11.22
83.37
84.79
81.73
83.39
Closing balance
33.1 With reference to Para. A, Art. 33 of State Monetary and Banking Act, the legal
reserve has been considered at 15% of the annual net income (net pro¿t after tax).
34. Capital Reserve
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
65.64
58.26
64.88
57.48
Provided during the year
0.12
18.91
0.00
18.80
Pro¿t and loss from sale of ¿xed assets
0.00
0.47
0.00
0.47
65.76
77.64
64.88
76.75
Opening balance
Closing balance
86
35. Other Reserves
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
0.01
0.00
0.01
0.00
Result of changes in exchange rate parity
received for capital increase based on the budget
rate for the year ended Mar. 20, 2009
64.01
75.73
64.01
75.73
Total
64.02
75.73
64.02
75.73
65.76
77.64
64.88
76.75
Other reserves
Closing balance
36. Foreign exchange collections of Export Petty Cash (Transferrable to
Capital)
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Opening balance
8.84
9.18
8.84
9.18
Collected during the yea
0.15
1.28
0.15
1.28
8.99
10.46
8.99
10.46
Closing balance
As per Para. H, Note 2 of the Development 2nd Plan Act and Para. S, Note 2 of the Budget
Act for the year ended March 19, 2008, the collection of the amounts of export foreign
exchange petty cash shall go on until full settlement, and necessary measures are currently
taking place to transfer them into the bank’s capital.
37. Result of Changes from Legal Parities of Foreign Exchange Rate
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Opening balance
153.27
150.23
159.58
128.05
Recorded during the year
139.82
31.08
134.57
60.72
293.09
181.31
294.15
188.77
Closing balance
87
The above ¿gure is recorded in the above-mentioned account in compliance with the
provisions of Article 136 of Public Accounts Act for translation of foreign exchange assets
and liabilities. Upon changing the banks’ foreign exchange portfolio from dollar to euro and
since there is no possibility for transfer dollar funds coming from the transactions made in
foreign currencies, euro has substituted dollar. Upon increase of the Bank’s capital equal
to USD 1.5 billion, the rate of Euro foreign exchange status to the Bank’s initial capital
experienced a strong increase.
38. minority interest
Exchange Co.
Cred Co.
Total
USD million
USD million
USD million
Capital
1.47
1.03
2.50
Legal reserve
0.15
0
0.15
Retained earnings
1.96
0
1.96
0
0.14
0.14
3.58
1.17
4.75
Share from retained difference of foreign exchange translation
Total
Minority interests in Exchange Co. and Cred Co. are 30% and 36.4% respectively.
88
39. Profit and Penalty Received and Other Joint Income
Group
19.03.2012
USD million
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Interest on facilities received:
Installment sale
56.95
52.95
56.95
54.01
Civil partnership
28.83
21.40
28.83
21.40
Debt-purchase
4.43
3.16
4.43
3.16
Investment-agent partnership
0.00
0.05
0.00
0.05
Futures
0.00
0.00
0.00
0.00
Reward loan
9.42
13.87
9.42
13.87
Total
99.63
91.43
99.63
92.49
Penalty received from facilities granted
23.41
21.17
23.41
21.17
Sales revenues
30.44
19.61
0.00
0.00
Pro¿t from investments
16.54
11.17
11.83
2.12
Pro¿t from participating bonds
1.20
0.54
0.14
0.14
Bonus on statutory deposit related to different
types of term deposit accounts
0.13
0.08
0.13
0.08
71.72
52.57
35.51
23.51
171.35
144.00
135.14
116.00
Total
Grand total
40. Depositors' Interests
Group
19.03.2012
USD million
Bank
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Depositors’ share of pro¿t from joint income
16.14
10.61
16.14
10.61
Bonus on statutory deposit related to different
types of term investment deposits
0.14
0.09
0.14
0.09
16.28
10.70
16.28
10.70
3.55
2.68
3.55
2.68
12.73
8.02
12.73
8.02
Less: On-account of pro¿t paid to depositors
13.90
10.04
13.90
10.04
Surplus of share of pro¿t paid to depositors
1.17
2.02
1.17
2.02
Depositors’ interest
Less: administration income
89
In the year ended March 19, 2012, the de¿nite pro¿t of the depositors’ share is calculated
according to the method proposed by the Central Bank, as per Letter No. 1960/MB dated
31 Dec. 2005, which is also compliant with the preferences and priorities and policies
announced by the Bank’s board of directors. These preferences and priorities shall be
calculated within different weights for various deposits and based on duration (Resolution
of 12/11/2009 of the Board of Directors).
41. Profit and Penalty Received for Non-Joint Income
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Interest received from facilities granted in
foreign currency/non governmental
89.12
95.71
86.80
93.76
Interest received from facilities granted in
foreign currency/ governmental
0.00
0.02
0.00
0.02
Penalty received from facilities granted in
foreign currency/ nongovernmental
14.77
7.31
14.77
7.31
Penalty received from facilities granted in
foreign currency/ governmental
1.32
0.30
1.32
0.30
Penalty received from other receivables
3.20
13.70
3.20
13.71
13.45
20.10
11.12
16.98
121.86
137.14
117.21
132.08
Interest received from deposits
Total
90
42. Commissions Received
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Interest-free accounts
0.00
0.01
0.00
0.01
Banks
5.23
0.09
0.24
0.09
Money orders in Rials
1.85
0.90
0.47
0.90
Letters of guarantee in Rials
5.02
5.57
5.02
5.57
Foreign currency deposit certi¿cates
1.19
4.43
1.19
4.43
Foreign currency sold
1.61
0.39
1.61
0.39
Foreign currency purchased
0.00
0.00
0.00
0.00
Money orders in foreign currency
0.95
1.05
0.76
0.78
L/Cs opened
8.21
10.06
8.21
10.06
Card services
0.64
0.62
0.64
0.62
Credit cards issued
0.65
1.02
0.65
1.02
Loans to employees
2.05
0.64
2.05
0.63
Commission on exchange deposit certi¿cate
0.00
0.97
0.00
0.00
Sundry
3.66
1.65
1.32
1.65
31.06
27.40
22.16
26.15
Total
Sundry commissions include commission received/ commission for document transactions
and commission on collected drafts.
43. Other Income
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
37.34
47.12
24.96
40.30
Proceeds from sale of ¿xed assets
2.90
0.48
0.00
0.02
Other sundry income
6.03
6.82
3.83
3.62
46.27
54.42
28.79
43.94
Pro¿t from foreign exchange trading
Total
Pro¿t from foreign exchange trading operations is recorded in this account
91
44. Interest Paid
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
0.07
0.54
0.07
0.54
Central Bank - deposit in Rials
16.50
21.74
16.50
21.74
Central Bank - deposit in foreign currency
20.25
13.90
20.25
13.90
Banks
1.06
1.41
0.00
0.00
Interbank market operations
0.12
0.02
0.12
0.02
Interest to exchange deposits
6.55
3.62
6.53
4.59
Foreign currency deposit certi¿cate
7.87
12.68
7.87
12.68
52.42
53.91
51.34
53.47
Foreign banks
Total
45. Commissions Paid
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Commission paid for banking services
0.77
0.20
0.55
0.20
Commission paid for electronic services
0.35
0.30
0.35
0.30
1.12
0.50
0.90
0.50
Total
46. General Expenses
Group
Bank
19.03.2012
USD million
20.03.2011
USD million
19.03.2012
USD million
20.03.2011
USD million
Expense of doubtful debts
34.55
5.31
32.08
3.81
Administrative expenses
23.31
26.58
18.21
22.00
Personnel expenses
46.04
42.76
38.44
39.06
Expense of depreciation of tangible ¿xed assets
5.51
6.41
4.58
6.04
Expense of impairment in value of investments
5.96
0.03
5.96
0.00
Expense of staff severance pay
1.78
2.40
1.78
1.97
Cost of goods sold
31.63
11.59
0.00
0.00
Expense of frozen accounts
0.00
72.89
0.00
72.77
Total
148.78
167.97
101.05
145.65
92
Internal Controls & Risk Management
93
Internal Controls
In view of the increasing importance of controlling issues and the increase of the
operational risk, in the second half of the Iranian year 1390 (year ended March 19, 2012), in
addition to follow-up of the previous actions to integrate the bank’s internal control system,
the Internal Audit Committee of the Bank consisting of a board member and the managers
of executive departments was formed with the goal of achieving the operational ef¿ciency,
checking the work process with the rules and regulations and examining the ¿nancial and
inspection reports. In the same line, the committee has held regular meetings in order to both
address the prepared reports in such areas as inspection management and internal audit and
present necessary solutions for preventing the occurrence of referenced weaknesses.
In Iranian year 1390 (year ended March 19, 2012), the Bank’s Inspection and Internal
Audit Directorate proceeded to inspect all branches of the bank and some of the staff units
in order to ensure the ef¿ciency and compliance of activities with internal regulations and
requirements, control the reporting procedures and protect the bank’s resources and assets.
Furthermore, the related reports have been set forth before the Internal Audit Committee in
order to remove the de¿ciencies and make necessary decisions.
In order to improve the internal environment of the bank and branches, the Supervisory
Committee and Inspection and Audit Directorate has also laid emphasis on and taken measures
to provide more education for the personnel, strengthen the work discipline, enhance the
personal and occupational competency through the Bank’s Appointment Committee and
revise the Guidelines for Appointments, delegate powers and assign more responsibilities to
the heads of branches in the credit and foreign currency sections and increase the relation
and coordination with supervisory bodies.
Documenting the checklists and guidelines, separating the supervisory duties, establishing a
system to examine and remove discrepancies in collaboration with the Financial Directorate
and monitoring the physical control of assets, along with the issues hereunder described, are
among other measures recently taken by the bank:
1. Reviewing the bank’s foreign currency guidelines, with a view to the central bank’s
measures in this respect,
2. Reviewing the bank’s guidelines for granting facilities,
94
3. Reviewing and updating the bank’s guidelines for inspecting and auditing of branches,
4. Holding internal audit committee’s meetings in order to examine the reports and present
practicable solutions for avoiding repeated de¿ciencies and strengthening the banking
knowledge of the heads of branches,
5. Developing the periodic internal inspection and audit reporting process, from the planning,
examination and through the follow-up, in order to remove weaknesses and prevent the
repetition of similar cases,
6. Calculating and presenting the concentration risk in the bank’s credit portfolio and the
liquidity risk at speci¿ed time intervals,
7. Obtaining the customers’ opinion assessment forms from the bank’s branches and head
of¿ce and presenting the results in the Iranian year 1390 (year ended March 19, 2012)
in compliance with Art. 8 of the Clientele Respect Plan in order to improve the services
provided to the customers,
8. Forming anti money laundering department,
9. Steering, regulating, developing and proposing the revised policies, plans, principles
and regulations supervising the anti money laundering affairs in accordance with the
regulations of central bank and other relevant establishments,
10. Designing a mechanism required to supervise and control anti money laundering
processes in the bank and auditing of the degree of their execution in individual
departments,
11. Examining and analyzing the statistics and information of branches and relevant units
and presenting suggestions in order to improve the process for preventing money
laundering.
12. Supervising the operations and transactions conducted by suspicious persons, preparing
their updated information and statistics and providing the relevant employees with such
information classi¿ed as “Very Con¿dential”,
13. Designating the anti money laundering liaison in each branch in collaboration with the
Directorate for Branches’ Affairs and Marketing and keeping a regular interaction with them,
14. Following up the issuance of necessary circulars with respect to execution of the anti
money laundering law and regulations,
95
15. Preparing the annual plan for execution of anti money laundering rules and monthly
control of their execution,
16. Updating the purchaser’s credit guidelines,
17. Updating the guidelines on issuing foreign exchange letters of guarantee,
18. Updating the guidelines for classification of the bank’s credit foundations into
4 different levels and determining the scope of powers and the permitted limit for
granting facilities for individual levels,
19. Performing a general review of the levels of users’ access in the (SAFIR) integrated
accounting system and implementing changes and modi¿cations according to the bank’s
structure and current guidelines,
20. Developing control tools and applied entry controls in the databases,
21. General entry controls in databases,
22. Applied reports for controlling the accuracy of information in databases,
23. Implementing foreign exchange comprehensive system and improving the exchange
and foreign exchange and drafts trading application software,
24. Completing and improving the control reports available in the customers information
comprehensive databank in order to control the accuracy of inserting information in the
related forms, comparing the balances of accounting systems and the comprehensive
databank, expired contracts, etc.
25. Preparing and updating the databank of the dishonest customers in the country’s banking
system on regular basis, in order to control the provision of banking services,
26. Developing supervisory guidelines on granting bank’s facilities,
27. Forming the supervision unit in the Credits Directorate, employing experienced staff
and carrying out physical and virtual inspections in order to examine the credit
performance of different units of the bank,
28. Using the customers’ credit rating model in credit assessment, determination of the
volume of related facilities and securities,
29. Holding seminars and training workshops for all personnel of the bank in order to
improve the scienti¿c knowledge of the colleagues in the area of money laundering,
96
30. Establishing an integrated liquidity management system,
31. Establishing a mechanized system to archive documents via micro¿lm,
32. Holding supervisory conferences with the presence of head of¿ce’s managers, and the
heads and deputies of branches and presenting training and controlling explanations for
pathological assessment and preventing the problems in branches,
33. Planning for self-assessment, supervising and revising the guidelines in order to
quickly identify and discover the de¿ciencies in internal control system and corrective
measures,
MONEY LAUNDERING
The Anti Money Laundering Department is formed under the direct supervision of the
bank’s CEO and consists of two divisions: Statistics, Information and Reporting of Suspicious
Transactions Division, and the Anti Money Laundering Processes Monitoring, Planning and
Control Division.
Operating the Suspicious Transactions Reporting (STR) System:
After receiving all reports on suspicious transactions from the bank’s branches, this
department, while examining and completing the necessary information, sends reports
through the aforesaid portal to the ¿nancial information unit (FIU).
Operating the Cash Transfer Reporting (CTR) System:
When all reports related to deposit of cash funds above the speci¿ed limit, are collected
from the af¿liated branches, they are immediately reported on the same day to the ¿nancial
information unit through the said system.
Providing Special Training Programs for Employees of Anti Money Laundering
Department:
All personnel of this department have successfully passed the specialized anti money
laundering training programs titled “UNODC AML/CFT Computer Based Training” held by
central bank and the secretariat of anti money laundering board.
97
Closing the Accounts without National Code/ ID:
In compliance with “Know Your Customer (NYC) Requirements”, after sending
necessary information and making required coordination, the accounts of those customers
who have failed to complete the required information were closed.
Adjusting the International Regulations and Guidelines with Anti Money
Laundering Rules:
All internal guidelines, specially those related to opening of various types of accounts
were adjusted with laws; in the same line all service provision forms and contracts were
reviewed in order to insert the essential information from customers and as per a letter of
undertaking, all bank’s customers were obliged to comply with anti money laundering rules.
Operating the Electronic Civil Status Registration Inquiry System
In order to ensure the accuracy of identity information of customers and the authenticity
of their ID documents, the above system was operated in the Information & Communication
Technology Directorate. In cases where the customers’ information are incomplete or
ambiguous, the said department makes the inquiry through the system.
Preparing the Checklist for Compliance with Anti Money Laundering Regulations:
In order to monitor the good performance of regulations and ensure their compliance in
all branches of the bank, a checklist was prepared from all guidelines communicated by the
Central Bank.
98
Risk Management Report of
Export Development Bank of Iran
In the Iranian Year 1390 (Year ended March 19, 2012)
Foreword
Today, the ¿nancial risks are considered as an unavoidable reality for the banks. These
institute must therefore adopt appropriate procedures in order to evaluate, measure
and report the risks they face with, in order to ensure that they have created their ¿nancial
strength and health. The report outlines the evaluations conducted in order to measure and
reÀect the major risks, the bank has been facing with.
CREDIT RISK
Credit risk is the most important risk threatening the banks. A credit risk originates from
the customer’s inability or unwillingness to ful¿ll his obligations against the bank.
In Export Development Bank of Iran (EDBI), credit risk is measured according to the
customer’s risk history, nature of securities and other information concerning the present
conditions of the customer.
Risk Management Department actively reviews credit risk management procedures as
well as its credit standards and corrects them if required, in order ensure that they match
the economic variable environment. The statistical models have been developed, using the
historical information and the details of credit behavior of customers, forming part of credit
risk management process.
In this context, “Concentration Risk”, which is considered as a sub-branch of credit risk,
is a banking term denoting the risk resulted from uneven distribution of credit among people
or concentration in business sections or geographical regions and it may cause losses that
might endanger the liquidity of the institute and dramatically reduce the ability to ful¿ll
obligations.
In order to measure and evaluate the concentration within the portfolio, we apply the
concentration of credit rank, the economic sector in which the customer runs its activity
(industry) as well as the size of the loan. In addition, the risky rates are a factor to determine
the level of allocation of economic capital and credit losses. Calculating the concentration
99
risk can display a clear image of the status of credit portfolio and consequently improve the
credit decision-makings and reduce the credit risk of the portfolio, by applying necessary
restrictions, based on the type of concentration.
A Summary of the Status of Credit Portfolio Risk in Iranian Calendar Year 1390
(Year Ended March 19, 2012)
The analyzes presented are based on the information on balance of facilities and liabilities
at the end of the Iranian year 1390 (March 19, 2012).
To begin, the results of the estimated distribution of the possibility of loss and volume of
loss of the credit portfolio are presented in the following table.
Volume of Loss from Credit Portfolio
Percent
Unit: Rls. Billion
Average
4,374
50
4,150
75
5,131
95
6,845
97.5
7,476
99
8,256
99.5
8,814
99.75
9,350
99.9
10,031
So the bank’s credit risk is measured to be Rls. 3,883 billion= 8,256-4,373.
During the Iranian year 1390 (year ended March 19, 2012) the balance of facilities and
liabilities shows an increasing trend. Current facilities and obligations have witnessed a
growth of 7.7% and less than 2%, respectively.
As regards the composition of natural and legal customers, almost 98% of the balance of
facilities and above 99% of the balance of obligations belong to legal customers.
In segmental analysis, the highest balance of facilities pertains to the services sector with
41.93% and the lowest balance pertains to “Agricultural and Processing Industries” with
almost 6.45 percent.
100
Bank’s Rates
In order to provide suitable ground for expansion of its activities throughout the world,
EDBI obtained the international rate from Capital Intelligence Institute for the 5th time. The
bank’s rates published by CI in December 2011, are as follows:
National Rating
Long-Term
BB-
Short-Term
B
National Outlook
Stable
Foreign currency rate
Long-term
BB-
Short-Term
B
Support Factor Rate
3 (highest support factor after rate 4)
Outlook
Foreign currency
Stable
Financial strength
Stable
Factors Supporting the Bank’s Rate
- Very high capital adequacy ratio alongside a lower lever,
- It is a state-owned bank, which brings about capital support and low ¿nancing cost for
the bank.
- Maintaining a clear business model as an authorized bank specialized in development of
exports, which issue has provided the ground for Export Development Bank of Iran to
have an active presence in new markets for non-oil exports,
- Improved liquidity status as a result of remarkable increase in customers’ deposits
- Increased gross income and net pro¿t
Market Risk
Market risk is de¿ned as the loss resulted from unexpected impairment of the net value of
the ¿nancial institute’s assets as a result of changes in market prices, which can principally
occur following the Àuctuations in foreign exchange and interest rates or the stock prices.
101
For EDBI, the major items subject to market risk, are summarized within the foreign
exchange open status, leading to an unexpected loss in the form of decline in value of
receivables or increase of the value of obligations as a result of foreign exchange Àuctuations
in the market. Since various exchange values in open foreign exchange status vary on daily
basis, in order to estimate the scope of Àuctuations in its value, in a way that it is only due to
changes in rates, the average foreign exchange values available in the transactional portfolio
were calculated and applied for one year. So with the assumption of average values of Ɨi for
different currencies existing in the transactional portfolio, the quantity of Pj=i Ɨi * eij as
the market value of currency transactional portfolio was calculated for all days of the Iranian
year 1390 (year ended March 19, 2012) by calculating the currency rates eij (exchange rate
of i on the day j). Finally upon extracting a frequency graph (histogram) for the above data,
a picture was created to show the range of Àuctuations in foreign currency open status in
the year 1390 (year ended March 19, 2012) based on the Rial-equivalence foreign currency
rates, which result is demonstrated in the following graph:
Source: daily reports of foreign exchange status in the Iranian year 1390 (year ended
March 19, 2012)
102
As shown in the above graph, the Àuctuations in the value of foreign exchange open status
are accumulated around two limits (Rls. 11,200 billion and Rls. 12,600 billion, respectively),
and the reason is due to sudden increase of Rial price of the US dollar at the end of Iranian
year 1390 (year ended March 19, 2012) because of change of foreign exchange rate regime
by the Central Bank. However, according to the Basel II standard, the market risk index is
equal to the endangered value for the said portfolio and equal to the limits ranging from the
mean and the ¿rst percentile (1%), which is measured as Rls. 535.4 billion.
Operational Risk
Operational risk is the possibility of losses incurred by inappropriate and insuf¿cient
processes, methods, individuals and internal systems and/or caused by events outside the
credit institute. The main elements of operational risk are as follows:
Individuals Risk: Potentialities, competencies and motivations of individuals in the
organization,
Technology Risk: system breakdown, system security, support plans and accident
recovery plans, IT related crimes, etc.
Legal Risk: documentation for transactions, collaterals, and keeping the customer’s
secrets,
Reputation Risk: Shareholders’ and customers’ insights about the organization, the
observer’s perception method,
The bank must take measures to effectively manage those operational risks that are
indivisible part of the important products, activities and systems. This management includes
evaluation, measurement, reporting and controlling the operational risk. Like the previous
year, in the year 1390 (year ended March 19, 2012) the standardized method was used as
the base method in estimating the operational risk of Export Development Bank of Iran. In
order to use this method to measure the capital reserve required to cover the operational risk,
the entity’s annual gross income must be calculated for three consecutive years as hereunder described. In this method, the entity’s activities are divided into 8 work groups and
the operational risk of each work line, is determined through the correlative coef¿cient of ȕ
multiplied by the gross income of the same line.
103
Work Line
Coef¿cient ȕ
1- Corporate ¿nancing
18%
2- Sale and commercial
18%
3- Retail banking
12%
4- Business banking
15%
5- Payment and settlement
18%
6- Agency services
15%
7- Asset management
12%
8- Retail dealership
12%
Finally the following formula is used to obtain the total operational risk:
ȈȈ(GI . ȕ)ij /3
3
KTSA=
8
i=1 j=1
In which i is the index of three consecutive years from the previous years, j is the index
of work lines and GI is the gross income of each work line. Considering the type of activity
of EDBI, the localized work lines for EDBI are as follows:
1. Gross income from sales and commercial activities
2. Gross income from retail banking,
3. Gross income from business banking
4. Gross income from payment and settlement
5. Gross income from agency services
Table bellows shows the details and results of calculation of annual gross income of Export
Development Bank of Iran in the ¿rst 6-month periods of the Iranian years 1388 (year ended March
20, 2010) through 1390 (year ended March 19, 2012). It is worth mentioning that all ¿gures in the
table have been extracted from the audited ¿nancial statements of the bank in the referenced years.
104
Fiscal Period
Work Lines
First 6 months
of the year 1390
First 6 months
of the year 1389
First 6 months
of the year 1388
547,601
306,896
253,419
34,317
21,577
15,282
903,658
670,221
646,044
Gross income from payment and settlement
11,980
8,305
11,605
Gross income from agency services
81,655
120,188
23,405
Bank’s gross income (risk-weighted)
252,640
177,887
149,956
Gross income from sales and commercial activities
Gross income from retail banking
Gross income from business banking
Bank’s total gross income in 3 periods (risk-weighted)
580,482
capital cover for operational risk in standardized method
193,494
All ¿gures are stated in Rls. million.
Since the audited ¿nancial statements for the year ended March 19, 2012 were not
available at the time of reporting, the operational risk-weighted assets are estimated based
on the information derived from ¿nancial statements for the ¿rst 6-month periods of the
Iranian years 1388 (year ended March 20, 2010) to 1390 (year ended March 19, 2012). As
you can see in the above table, the estimated ¿gure is the capital cover related to the ¿rst six
month period of the Iranian year 1390 (year ended March 19, 2012) and the operational risk
capital cover for the whole year should be considered two times the said ¿gure, equal to Rls.
4,837,350 million.
Capital Adequacy
Capital adequacy ratio is an index for measuring the ¿nancial power of a ¿nancial
institute and it is somehow the bank’s capacity to absorb liability and create risk-associated
assets and it is stated as ratio of the bank’s capital over its weighted assets. According to the
guidelines issued by the Basel Committee, this ratio for the banks must be 8% at least. Table
below shows the details of calculating the capital adequacy ratio based on the Basel – II
Approach:
105
Table: Calculation of the Capital Adequacy Ratio Based on Basel II Approach
Credit risk-weighted assets
48,530,070
Market risk-weighted assets
6,692,500
Operational risk-weighted assets
4,837,350
Total risk-weighted assets
60,059,920
Core capital
22,292,938
Capital adequacy ratio
37%
Figures in Rls. million
This ratio is much higher than the one proposed by the Basel Committee and it shows the
bank’s high ability when encountering speci¿c conditions and also its strength against
unexpected losses; though it shows that the loans have been mostly ¿nanced out of the
bank’s capital.
106
Social & Organizational
Responsibilities
107
Social & Organizational Responsibilities
Apart from its role in ¿nancing the non-oil exports and other technical and engineering
services, the Bank for the year reported strived to ethically conduct its banking operations
aligned with societal, stakeholders and other environmental concerns.
For that reason, engaging in a fair competition and marketing of the banking services
received due attention. As part of its social responsibilities though, the Bank demonstrated
ethical considerations when performing in a competitive environment and so devised mechanisms to optimize resource allocation and utilization for the sake of sustainable development.
Meanwhile, the Bank in the year reported proved having fully adhered to its documented
code of ethics and practice, and deemed itself entirely accountable at all stages of banking
operations undertaken either by its branch-network and or any other subsidiary in its entirety.
The Bank is aware that as well as contributing to the economic wellbeing of the nation,
it should play a pivotal role to be of bene¿t to the environment in which it is operating and
thus has adapted itself with the changing environmental demands.
Contributing to the charitable organizations, encouraging the staff to partake in the relief
programs, raising funds for the humanitarian causes, holding seminars and other training
programs that will assist the society having access to low-cost loans especially with respect
to the Islamic banking products, partnering with the academic research institutions were also
among the programs the Bank has been involved in, for the year reported.
A sound social environment is an important factor determining long-term business
success. So the Bank takes requisite measures on this regard. For instance it supports the
charitable organizations and projects around the world. The Bank also encourages its employees to engage in volunteering in order to bene¿t all the society.
The Bank has consistently focused on its impact on social activities as a whole. The Bank
strives to act with integrity, responsibility, fairness, transparency and discretion at all times
in order to secure the trust of its shareholder, customers and employees, as well as other
stakeholders.
All the Bank’s employees comply rigorously with its code of conduct, which sets out core
values such as integrity, responsibility and respect, as well as a commitment with sustainability.
108
Complying with Rules and Regulations
The Bank fully adheres to the principles set out by Central Bank of Islamic Republic of
Iran. Iran’s Central Bank periodically reviews the arrangements, strategies, processes and
mechanisms implemented by the Bank to comply with the provisions of the law and evaluate
the risks to which the Bank is or might be exposed to. This review and evaluation is updated
at least on an annual basis.
The Bank’s main corporate governance documents include the Articles of Associations,
the Organizational Guidelines and Regulations, the Charters of the Board of Directors and
of each of its committees.
One of the Bank’s key objectives last year was to take concrete steps to help
restore trust in the financial sector. The Bank, therefore, engaged in an open and
constructive dialogue with regulators to help shape the debate about how our industry
should evolve.
Internal Audit & Risk Management
Internal audit is part of the organizational control of the Bank; it is one of the methods
used by the management to ensure the orderly and ef¿cient running of the business as a
whole and is part of the overall control environment.
The Bank’s internal audit helps management to manage the risks in relation to fraud and
error, and exercise proper stewardship. A properly functioning internal audit department
is part of good corporate governance, as recognized by international codes on corporate
governance.
The internal audit function is operated in order to assess the ongoing control as well as
all the ¿nancial and non-¿nancial risks that could keep the Bank from achieving planned
objectives. Effective internal controls form the foundation for the Bank’s system of risk
management.
The risk management function plays a central role in the Bank as it creates appropriate
transparency providing a sound basis for management to de¿ne a suitable risk pro¿le. Risk
Management is instrumental in ensuring a prudent and intelligent approach to risk-taking
that appropriately balances risk and return and optimizes the allocation of capital.
109
Community Involvement
The Bank believes that a responsible approach to business is a decisive factor
determining its long-term performance. To support its strategy, the Bank has
consistently focused on key factors: the quality of its people and culture, its customers and the
communities in which it operates. The Bank aims to make a positive contribution to the
community to which it belongs, in all the markets where it operates. It does so by taking initiatives
and by providing ¿nancial supports to external projects that meet its requirements as regards
community involvement.
Sustainable development programs of the Bank require contribution to the community
and any related projects. As a member of community, the Bank sponsors many educational
programs, competitions and undertook participating in national exhibitions and banking
fairs.
Advocating compliance programs and enhancement of business strategies are among
other tasks of the Bank to achieve its set cooperate social responsibility goals. These
business strategies fully comply with laws that protect sustainability of ¿nancial activities
and prevent the illicit banking operations.
Activities requiring participation in charitable events for helping the people in disaster
stricken areas were undertaken and all members of staff also encouraged for taking part. All
these efforts made on the base of the assumption that the Bank has a social responsibility for
building a congruent society and creating value for the national economy. In this regard, the
Bank will continue its efforts to promote a coordinated international approach to banking
supervision.
The Environment
The Bank has recently focused on its impact on the environment. In addition to several
initiatives, for the year under report the Bank established a new environmental performance
targets to achieve a reduction in electricity, gas and water usage.
In wake of taking several policies, the Bank has competed to be pioneer among the
Iranian banks on environmental issues through lowering energy consumption and raising
employee awareness of these issues.
110
Social dialogue
Holding seminars with the aim of making studies in Islamic banking, international corporate
and trade ¿nance in the Bank attracted a wide audience. The end result of these gatherings
believed to be highly conducive to making business of banking decisions and arriving at new
business models.
Code of Ethics
The Bank strives to be well recognized as a reputable ¿nancial institution by aligning its
¿nancial performance with its ethical stance.
The most important business ethics guidelines are contained in the code of conduct for
employees, a uniform set of rules for all Bank’s employees governing their professional
conduct towards their employer, customers, colleagues and society as a whole.
Speci¿c rules are in place governing conduct in certain areas or activities. The codes
include trust, integrity, quality and honestly, and employees are required to demonstrate
these behaviors and comply with the codes whenever they are identi¿ed as representatives
of the Bank.
Stakeholder Engagement
The Board and management of the Bank believe that stakeholder engagement help them
to understand what the stakeholder expect of the Bank. So, in order to achieve sustainable
success, the Bank must continuously earn the trust of its stakeholders and acts as a reliable
and professional partner at all times. The main stakeholders of the Bank include customers,
government (as the sole shareholder), employees, regulators and media.
The speci¿c stakeholder engagement activities for the year under report included a review
of how the Bank supports customers facing ¿nancial hardship. The Bank also contributed to
public policy-making process through regular engagement with regulators.
The Bank’s approach to the stakeholder engagement reÀects its long-term goal to create
relationships of integrity and mutual respect with all of its stakeholders. As a result the extent
to which the Bank might exceed its obligations to stakeholders has seriously been taken.
111
Customer Satisfaction
The Bank has been fully committed to provide exporters and importers with
comprehensive advice on possible ¿nancing schemes. The expert advices enable the
customers to properly structure their transactions in order to mitigate the risks associated
with international trade and business.
The customer satisfaction is the Bank’s top priority. In this regard, the customer
relationship of¿cers in the branch networks have received extensive training on multiple
types of trade ¿nance driven products and can serve the customers on case by case basis. The
customers’ help-line is a permanent service of the Bank to respond to the growing demand
of customers for having access to the updated information in the ¿eld of trade and banking operations. The Bank’s retail customer satisfaction at 96.6% in providing the on time
services was recoded for the year under report.
Electing EDBI as the best supporter in non-oil export sector by the related organizations
for export promotion reÀects the success of the Bank in implementing policies in line with
achieving its goals.
Responsibility towards Employees
The Bank devised mechanisms for better ¿nancial planning in order to create value for
the public at large as well as serving the economic well being of the people. This so far
included providing employment opportunities, enhancement of Islamic Banking, offering
training and development plans and opportunities for its staff members in conjunction with
organizing meetings and other social gatherings for their family members.
The Bank’s human resource is responsible for succession management, talent and
competence, and for handling personnel issues. The human resource department is in charge
of implementing the relevant policy and standards, and it takes additional initiatives adapted
to social conditions.
The Bank capitalizes on its workforce as an intangible asset and all training and
development programs are tied to enhanced motivation within the Bank as well
as employability in the career development program that each member of staff might
personally pursue.
112
Recruiting- Attracting Junior Talent
In this Bank where access to top talent is paramount to success, Human Resources
consistently attract, retain and develop exceptional staff. The Bank also strives to create a
stimulating working environment with challenging tasks and attractive career opportunities
within multicultural teams. The Bank offers a safe workplace that attracts, retains and
motivates high performance by stimulating innovation, rewarding excellence and treating
people with respect.
Highly knowledgeable and experienced employees are the foundation of the
Bank’s success. The Bank has established a number of integrated programs aimed
at attracting and retaining employees from a wide variety of backgrounds ranging
from apprentices and high school graduates to university graduates and experienced
professionals.
Employee Satisfaction
Since employee motivation and satisfaction are the driving force behind much of the
success of any corporate, the Bank regularly measures level of satisfaction and involvement
by surviving its staff in the interest of building a relationship of honesty, integrity, and trust,
among organization employees. The results are communicated effectively and acted upon by
the organization.
Finally, the organization’s managers need to track progress and communicate
implementation successes and failures. The Bank uses the ¿ndings of the surveys to take
speci¿c measures. The surveys have revealed that employee satisfaction has improved in
recent years. The results help line managers to identify the needs of their employees. At
the same time, the results provide management with a representative picture of employee
satisfaction.
Performance Measurement
The performance targets are set for each management and actual performance assessed
against these on a regular basis. Reasons for under performance are also ascertained and
where appropriate, changes made to the relevant compositions.
113
In this regard, the Bank enjoys a system to assess the quality of performance
measurement as a basis for determining whether the Bank’s goals and objectives are
achieved.
The performance review and reward management tries to achieve equity and fairness.
Hence, through continual assessment and by modifying and making its remuneration policy
more transparent, the Bank aims to increase its staffs’ development potential and to pay them
a fair salary.
In line of the Bank’s strategies, the human capital is planned to be rewarded in terms of
outputs and against a set of speci¿c objectives. Furthermore, to facilitate the employees’
development rather than responding to short-term needs, a training and development
program has been introduced to plan for a fully Àedged learning organization.
114
Group Network & EDBI’s Contact Details
115
Group Network
Ahvaz Branch, 1316
Arak Branch, 1330
Tel: +98 (611) 220 2870 - 220 30264220 2873
Fax: +98 (611) 221 2537
Swift: EDBIIRTHAWZ
Manager: Mrs. Fariba Naderian
Tel: +98 (861) 222 1070 – 222 4018
Fax: +98 (861) 224 0321
Swift: EDBIIRTHARK
Manager: Mr. Yousef Najdi
[email protected]
[email protected]
Astara Branch, 1312
Tel: +98 (18252) 28 195 – 28 194
Fax: +98 (18252) 28 191
Swift: EDBIIRTHAST
Manager: Mr. Yaghoub Anisi
Ardabil Branch, 1334
Tel: +98 (451) 7726841
Fax: +98 (451) 7726840
Swift: EDBIIRTH……
Manager: Mr. Eslam Shahlaeifar
[email protected]
Bandar Abbas Branch, 1324
Tel: +98 (761) 224 3100 - 224 606-7
Fax: +98 (761) 224 7605
Swift: EDBIIRTHBAN
Manager: Mr. Akbar Barzegar
Bojnoord Branch, 1336
Tel: +98 (584) 2220559
Fax: +98 (584) 2220597
Swift: EDBIIRTH……
Manager: Mr. Babak Banejad
[email protected]
Bushehr Branch, 1314
Chabahar Branch, 1323
Tel: +98 (771) 556 1916 – 556 1888
Fax: +98 (771) 556 1900
Swift: EDBIIRTHBSH
Manager: Mr. Nima Bozorgmehr
Tel: +98 (545) 444 3390 – 444 3393,5
Fax: +98 (545) 444 3392
Swift: EDBIIRTHCHA
Manager: Mr. Hamidreza Mortazavi
[email protected]
[email protected]
116
Gorgan Branch, 1309
Hamedan Branch, 1317
Tel: +98 (171) 232 6999 - 234 1301
Fax: +98 (171) 232 1066
Swift: EDBIIRTHGOR
Manager: Mr. Mostafa Momeni Moghadam
Tel: +98 (811) 825 6801 - 825 6802-4
Fax: +98 (811) 825 6800
Swift: EDBIIRTHHAM
Manager: Mr. Abdoulreza Naderipour
[email protected]
[email protected]
Isfahan Branch, 1308
Tel: +98 (311) 222 5551-2
Fax: +98 (311) 221 4275
Swift: EDBIIRTHISF
Manager: Mr. Seyyed Samadodin Hashemi
Ilam Branch, 1335
Tel: +98 (841) 3383744- 3384672 -5
Fax: +98 (841) 3384678
Swift: EDBIIRTHILA
Manager: Mr. Mahdi Azar
[email protected]
Kerman Branch, 1315
Kermanshah Branch, 1320
Tel: +98 (341) 223 0903 – 223 9197 223 3548
Fax: +98 (341) 226 8447
Swift: EDBIIRTHKER
Manager: Mr. Hamid Reza Asadi
Tel: +98 (831) 823 1925 - 823 0210823 4482
Fax: +98 (831) 823 2891
Swift: EDBIIRTHKRH
Manager: Mr. Yousef Hayati
[email protected]
[email protected]
Khorramabad Branch, 1318
Kish Branch, 1328
Tel: +98 (661) 420 5525 - 420 1984420 5526
Fax: +98 (661) 420 5534
Swift: EDBIIRTHKHO
Manager: Mr. Hamid Fazelnia
Tel: +98 (764) 442 0791- 442 0795-98
Fax: +98 (764) 442 0793
Swift: EDBIIRTHKSH
Manager: Mr. Farzad Soltani Moghadam
[email protected]
[email protected]
117
Mashad Branch, 1306
Orumiyeh Branch, 1313
Tel: +98 (511) 761 8550 - 761 8011-4
Fax: +98 (511) 768 6985
Swift: EDBIIRTHMSH
Manager: Mr. Mohammad Habibi
Tel: +98 (441) 346 2221- 344 3321
Fax: +98 (441) 346 9088
Swift: EDBIIRTHORU
Manager: Mr. Nemat Fathi
[email protected]
[email protected]
Qazvin Branch, 1331
Qeshm Branch, 1311
Tel: +98 (281) 224 5704 -06
Fax: +98 (281) 222 5975
Swift: EDBIIRTHQAZ
Manager: Mr. Saeed Pashaei
Tel: +98 (763) 524 2830-35
Fax: +98 (763) 524 2911
Swift: EDBIIRTHQSH
Manager: Mr. Ali Ghorbani Moghadam
[email protected]
[email protected]
Qom Branch, 1326
Rasht Branch, 1321
Tel: +98 (251) 775 1012 -15
Fax: +98 (251) 775 1011
Swift: EDBIIRTHQOM
Assistant Manager: Mr. Saied Rezaei
Tel: +98 (131) 322 3048 - 322 0313
Fax: +98 (131) 322 0314
Swift: EDBIIRTHRSH
Manager: Mr. Yahya Amani Sandiani
[email protected]
[email protected]
Sanandaj Branch, 1333
Tel: +98 (871) 6624766
Fax: +98 (871) 6624768
Swift: EDBIIRTH…..
Manager: Mr. Farhad Jalaliyan
118
Sari Branch, 1303
Tel: +98 (151) 225 6490 - 225 6491-4
Fax: +98 (151) 226 4085
Swift: EDBIIRTHSAR
Manager: Mr. Tooraj Mohsennia
Shahre Kord Branch, 1339
Semnan Branch, 1332
Tel: +98 (381) 22 40900-3
Fax: +98 (381) 222 7257
Swift: EDBIIRTHSHK
Manager: Mr. Abolfazl Haghdoost
Tel: + 98 (231) 4436024
Fax: +98 (231) 4436033
Swift: EDBIIRTHSEM
Manager: Mr. Majid Rooholahpour
[email protected]
[email protected]
Shiraz Branch, 1305
Tabriz Branch, 1307
Tel: +98 (711) 234 8320 234 8305-15
Fax: +98 (711) 234 8322
Swift: EDBIIRTHSHI
Manager: Mr. Nasrolah Moeini Azad
Tel: +98 (411) 557 2900 - 9
Fax: +98 (411) 557 2901- 557 2905
Swift: EDBIIRTHTAB
Assistant Manager: Mr. Bahman Jabari Farokhi
[email protected]
[email protected]
Yazd Branch, 1302
Zanjan Branch, 1319
Tel: +98 (351) 525 0666 525 0188, 525 3377
Fax: +98 (351) 525 5744
Swift: EDBIIRTHYAZ
Manager: Mr. Majid Ghafouri Manesh
Tel: +98 (241) 323 1001 – 323 1002
Fax: +98 (241) 323 1003
Swift: EDBIIRTHZAN
Manager: Mr. Hosein Hosein Pour
[email protected]
[email protected]
Zahedan Branch, 1338
Yasooj Branch, 1340
Tel: +98 (541) 3218823- 3218827
Fax: +98 (541) 3263984
Swift: EDBIIRThzah
Manager: Mr. Mahmood Momenzadeh
Tel: +98 (741) 222 3337- 2229955
Fax: +98 (741) 2223334
Swift: EDBIIRTHYAS
Manager: Mr. Mostafa Soroush
[email protected]
[email protected]
119
[email protected]
[email protected]
Mirdamad Branch
Tajrish Branch
Tehran, 1322
Tel: +98 (21) 2226 2600 - 2226 2601-06
Fax: +98 (21) 2222 1404
Swift: EDBIIRTHMIR
Manager: Mr. Mohammadreza Rahimi
Tehran, 1325
Tel: +98(21) 2270 8450-2270 8446-49
Fax: +98 (21) 2270 8441
Swift: EDBIIRTHTAJ
Manager: Mr. Ali Shahbazi
[email protected]
[email protected]
Pamenar Branch
Tehran, 1327
Tel: +98 (21) 3311 5675 3311 1413-3391 1216
Fax: +98 (21) 3311 7617-33925939
Swift: EDBIIRTHPAM
Manager: Mr. Javad Sardeli
[email protected]
120
Manager: Mr. Mohammad Ali Manafzadeh
Representative Office
Birjand Branch,1337
Tel: +98 (561) 444 2969
Fax: +98 (561) 444 2969
Manager: Kayvan Manouchehri
®
Tehran, 1310
Tel:+98 (21) 8896 3727 - 8896 3746-53
Fax: +98 (21) 8896 3728
Swift: EDBIIRTHBLV
Tehran Branches
Tehran, 1301
Tel: +98 (21) 8872 9982 - 8871 6607-9
Fax: +98 (21) 8871 0171
Swift: EDBIIRTHCEN
Manager: Mr. Nader Hasan Pour
®
Keshavarz Blvd Branch
Tehran Branches
°
Tehran Branches
°
Tehran Branches
°
Tehran Branches
Central Branch
[email protected]
[email protected]
Subsidiary
®
51 K. Tsetkin St., 220004, Minsk,
Republic of Belarus
Tel: +375 17 3060690
Fax: +375 17 3060690
Swift: HNRBBY2X
Tlx: 252252
Executive manager:
Mr.Mohammadreza Zari¿an Rajaee
Honor Bank
Subsidiary
°
Subsidiary
Urb. El Rosal, Av. Francisco de
Miranda, Antes la Avenida
Principal de Las Mercedes,
Edi¿cio Dozsa, Piso 8, C.P.
1060 Caracas, Venezuela
Tel: (58212) 952 65 53; 951 49 80;
953 26 57; 952 03 01
Fax: (58212) 958.910.30
Swift: IDUNVECA
web site: www.bid.com.ve
Executive manager: Mr. Alireza Rahimi
°
Banco Internacional de
Desarrollo C.A. (Banco Universal)
Représentative Office
EDBI’s Rep. Of¿ce in Kazakhstan
POB 051, Dostyk Avenue 210,
Almaty 050051,
Republic of Kazakhstan
Tel: 007 727 264 16 26
Fax: 007 727 262 30 15
121
Dr. Hossein Eivazlou
Dr. Mir Saeed Nikzad Larijani
Board Member
Tel: + 98 21 88702832
Fax: + 98 21 88702833
Board Member
Tel: +98 21 88702834
Fax: +98 21 88702833
Email: [email protected]
Dr. Naser Seifollahi
Board Member
Tel: + 98 21 88702839
Fax: +98 21 88702836
Mr. Hushang Goodarzi
Head of International Finance and
Investment
Tel: +98 21 88700925/88708122
Fax: +98 21 88700755
Mr. Mohammad Hossein Mehrani
Manager of International Affairs
Tel: +98 21 88703464
Fax: +982188700755
International Finance and
Investment Dept.
®
Board of Directors
®
Board of Directors
®
Board Member
Tel: + 98 21 88702831-2
Fax: + 98 21 88702833
International
Affairs Division
Chairman and Managing Director
Tel: + 98 21 88716917
Fax: + 98 21 88716978
122
Dr. Mojtaba Harati Nik
Mr. Ehtesham Fallahfar
Manager of Credit Affairs
Tel: +98 21 88700760/81922667
Fax: +98 21 88700761
®
®
International
Affairs Division
Mr. Bahman Vakili
Credit Affairs
Division
Board of Directors °
EDBI’s Contact Details
Public Relations Dept.
Mr. Mohsen Ashrafpour
Head of Public Relations
Tel: +98 21 88703191/ 81922407
Fax: +98 21 88703193
H/O Address:
No. 26, Tosee Tower,
15th St., Ahmad Ghasir Ave.,
Tehran 1513835811
Islamic Republic of Iran
123
124
2