Dar Es Salaam Investment Bank -
see information in Arabic
Establishment: The Dar Es Salaam Investment
Bank was established as a private, joint stock company in April of
1999 and commenced comprehensive banking activities the same year.
The Bank’s capital was set at its founding at ID 200,000,000 and has
gradually increased to its current level of ID 2,400,000,000.
The Bank currently has 14 branches. Eight are located in Baghdad, 2 in
Mosul, and one branch each in the towns of Diywaniyah, Samawa, Kerbala
and Aziziya (Wassit).
At present the Bank has 430 employees with an annual payroll of ID
384,000,000. The lack of automation in Iraq’s banking system is a
major contributor to the high level of employment.
Total deposits presently amount to ID 22,171,000,000. Notwithstanding
the increase in Iraq’s money supply during the Bank’s history, the
Bank’s management can be credited with attracting a sizable portion of
Credit granted (loans, discounts of commercial bills, overdrafts) by
the Bank amounts to ID 8,427,000,000. This credit is collateralized
with bonds, deposit account balances, jewelry, real estate and foreign
exchange. Most of the collateral is also enhanced by personal
guarantees of well known, financially sound clients. Such guarantees
were made necessary by the unstable conditions that the Iraqi economy
has experienced since 1990.
Another field of
credit in which the bank has engaged in the issuance of domestic
letters of guarantee amounting to ID 2,093,000,000.
The Bank’s present investment bonds portfolio is valued at ID
7,711,000,000 including the holding of Treasury Bills (outside the
legal deposit requirements) of ID 5,500,000,000. Moreover, the Bank
acquired real estate for its corporate headquarters and a number of
branches at market value of approximately ID 7,760,000,000. These
substantial Bank assets add materially to the value of the Bank stock.
The Bank has also
accepted various types of deposits in foreign exchange amounting to
US$ 2,159,000. Credit issued in foreign exchange is valued at US$
Adequacy Ratio: The Bank maintains a
capital adequacy ratio (i.e. ratio of capital to risk based assets) of
42.5%. This is well over the Basel Accord and the Central Bank of Iraq
ratio of not less than 15%. The high ratio maintained by the Bank
reflects a cautious credit policy adopted by management during the
volatile conditions the Iraqi economy experienced after the war.
Profitability: The Bank’s net distributable
profit at the end of 2002 amounted to ID 306,800,000 or 25.6% of its
total paid up capital. During the first eight months of 2003 profit of
ID 192,000,000 was earned.