The Forum for Partners in Iran's Marketplace

September 2004 / No. 31


Iranís Best Bank

This recognition and fame will boost the quality of the Bank's services in Iran and abroad, which will be inline with achieving higher costumer satisfaction.

The prominent banking journal, Euromoney, selects Bank Tejarat as Iranís best bank in 2003. Bank Tejarat specializes in trade finance and corporate business. In terms of assets, it is Iranís fourth-largest bank. It may not be as large as Bank Melli, Iranís largest bank, but it has a far learner and more efficient structure, when assessed by its return on equity, return on assets, or its cost to income ratio.

The main banks in Iran are highly specialized. Bank Tejaratís focus on trade and business ensures that it plays a prominent role in many of the biggest deals in the country. Bank Tejarat was the most active of Iranís domestic banks in the key syndicated loan deals over the past year.

While welcoming the announcement, Amir Mohammad Davoud, Bank Tejaratís Manager of International Affairs stated that presence in the countryís large and important contracting projects, return on equity and assets, cost to income ratio and specialization in international banking were all factors that contributed to the selection of Bank Tejarat as Iranís best bank. This recognition and fame will boost the quality of our services in Iran and abroad, which will be inline with achieving higher costumer satisfaction.

The journal also points to BNP Paribas as the best investment company and selects HSBC as the best bank in the world. BNP Paribas wins the award for best debt house in Iran for its involvement in nearly half of all the project finance deals in the country. Deutsche Bank also acted as mandated arranger on four of the biggest deals, the same number as BNP Paribas, but the French bankís involvement in a further two shows the strength of its franchise in Iran. In 2002, BNP Paribas was joint book runner with Commerzbank on the Iranís debut Eurobond and although there is no award for best M&A House (merger and acquisition) in Iran this year, the fact BNP Paribas is the adviser to the government on its telecoms privatization program again shows the depth of the bankís relationship with the government, the biggest player in the economy.

International Banking: In regards to the latest developments of Bank Tejarat in the international field, Amir Mohammad Davoud said that Bank Tejarat has utilized the services of more than 600 world-class banks as well as its branches in France and Tajikistan as well as its representative office in Beijing. This has allowed it to boost the quality of its services through 28 foreign currency units and 124 foreign currency circles. Thanks to this, Bank Tejarat has claimed a considerable share of foreign currency exchanges in Iranís banking system.

During the previous year, the total foreign currency interactions of Bank Tejarat were as follows:

  • Issuing 10,830 letters of credit at a total value of approximately $4.5 billion

  • Granting 568 foreign currency securities at a total value of $280 million

  • Supplying the currency required for buyback projects at a total value of $368 million

  • Selling $60 million worth of bonds

Bank Tejaratís Achievements: The standing of Bank Tejarat is owed in part to its successful accomplishments in the new millennium, which have been the result of a series of development initiatives set in motion years ago. The most remarkable achievements can be listed as follows:

  • Number One in granting banking securities and guarantees (claiming a 29% share in Iranís banking system)

  • Number One in issuing documents of credit (claiming a 25% share in Iranís banking system)

  • 35% increase in the Bankís savings compared to the previous year

  • Boosting the Bankís share of the trade bank market by 1% to 16.1%

  • Elevating the Bankís standing amongst the top 3,000 banks, from 629 in 2000 to 287 in 2001, based on the rankings of The Bankers Almanac

  • Achieving an income increase of 67% compared to the previous year, despite profiting restrictions caused by structural reforms implemented three years ago

  • Increasing return on assets from 21.3% in 2000 to 35.6% in 2001


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  Sep.  2004 / No. 31