The unprofitable bank became profitable

According to the monetary financial news quoted by the public relations of Gharz al-Hassaneh Mehr Bank of Iran, a review of the financial statements of Bank Mehr Iran shows that the accumulated profit of this bank increased from 3951 billion rials in 1398 to more than 9363 billion rials in 1399 and grew by 137%. had.
Also, in case of profit and loss of this bank, it is clear that the net profit of Bank Mehr Iran in 1399 was 7067 billion Rials, which has experienced a growth of almost 19% compared to the previous year.
Realization of accumulated profit of nearly 10 thousand billion rials by the end of 1399 while Bank Mehr Iran does not receive interest from its customers and the maximum fee received from customers for loan facilities is 4%.
Increase capital from accumulated profits
According to the resolution of the Annual and Extraordinary General Assembly of Bank Mehr Iran in July of this year, it was decided to use the accumulated profit to increase the bank’s capital in several stages. Therefore, it has been done to increase the capital of 25 thousand billion Rials of this bank in several stages from the place of this accumulated profit; So that in the first phase, 9000 billion rials from the accumulated profit in 1399 and the rest in the coming years will be provided from this place.
The capital of Bank Mehr Iran at the beginning of its establishment (2007) was 15,000 billion Rials, which reached 25,000 billion Rials after the capital increase in 1399. Now, with the approval of the General Assembly, the capital of this bank will reach 50,000 billion Rials in several stages.
40% increase in operating income
Another indicator that attracts attention in the financial statements of Bank Mehr Iran is commission income. The net fee income (excluding fee expenses) of this bank last year was 15 thousand and 379 billion rials. This number has increased by nearly 60% compared to 1398, which was 9617 billion rials.
Also, the total operating income of the bank in 1399 was more than 22 thousand billion rials, which has increased by about 40% compared to the previous year.
According to the balance sheet of Mehr Bank of Iran in 1399, the total assets of this bank have increased from 291 thousand billion Rials in 1398 to 482 thousand billion Rials at the end of 1399 and have increased by 65%.
The amount of deposits of Mehr Bank Iran customers in 1398 was about 250 thousand billion rials, which in the following year with a growth of approximately 73% has reached 432 thousand billion rials.
In addition, the bank’s payment facilities have increased from 228 thousand billion rials in 1398 to 360 thousand billion rials in 1399 and have grown by more than 57 percent.
Excellent ratio of arrears and capital adequacy
Proper financial management at Bank Mehr Iran has had another successful outcome. In the past few years, the ratio of the bank’s arrears to its expenses has always been below one percent, which is unique among the country’s banks.
Another issue is the capital adequacy of Bank Mehr Iran. At present, the capital adequacy ratio of this bank is more than 13%, which is one of the best performances in the banking network. In recent years, the capital adequacy of Bank Mehr Iran has been beyond domestic and international standards such as the Basel Committee, and this achievement has been maintained so far.