Bank Saderat Iran (BSI)
P r o f i l e
O b j e c t i v e s
C o r e V a l u e s
V i s i o n
M i s s i o n
Bank Saderat Iran (BSI) was established in 1952 as one of Iran’s leading private banks. Whilst its operations were initially commenced with the aid of only 20 employees, BSI was quick to rapidly expand its branch network and to penetrate Iran’s market.
By 1961, BSI launched its international operations by establishing its first overseas branch in Hamburg, Germany, which was followed by other overseas branches in a number of countries such as the UK, Greece, France, UAE, etc.
Along with other Iranian private banks, BSI became nationalized following the 1979 revolution and was privatized once again as of March 2010. Today, from its humble beginnings BSI has emerged as a credible popular bank, supported by an intensive network of more than 2,795 branches, employing over 32 thousand people and providing high quality services to millions of Iranians.
Our main objectives are to:
• Maximize profitability• Boost capital returns• Further develop the scope of modern
banking services • Increase productivity• Further develop our links with customers• Further commit ourselves to social
responsibilities• Enhance our human resource
management
Our mission is to offer all kinds of high quality banking services to individuals and companies in Iran and abroad. This mission is founded upon the principles of creating wealth for our shareholders, customer orientation, social accountability and with a focus on our human capital.
Our vision is to become the number one bank within Iran.
• Professional conduct• Loyalty to our clients• Paying a special attention to our
employees• Organizational commitment
H u m a n R e s o u r c e sAt Bank Saderat Iran, we firmly believe that human resources play a vital part in determining the success of organizations. Therefore, we pay a special attention towards selecting qualified and experienced personnel.
O r g a n i z a t i o n a l C h a r t
Board of Directors
Risk Management High Committee
Managing Director
Audit & Internal Control Committee
Other Committees
Managing Director’s Special Inspectors
Managing Director’s Advisors
Inspection & Internal Audit Department
Anti-Money Laundering Department
Research & Planning
Department
Organization & Methods
Department
RiskManagement Department
Branches & Marketing
Affairs
Management Communications
& Services Affairs
Information Technology
Affairs
Financial Affairs
Investment Affairs
Credit Affairs
Security Affairs
Support & Services Affairs
Marketing & Customer Services
Department
Tehran & Provincial
Branch Management
Branches & Independent
Sectors
Management Accounting &
Statistics
Accounting Department
Projects Supervision Department
Overseas Branches
Training Department
Projects Assessment Department
Forex Accounting Department
Information Technology
Security Department
Excess Properties
Sales Department
Sepehr Voice
Public Relations
Department
Modern Banking Services
Department
Shareholders & General
Assemblies Department
Welfare Department
Recovery Department
Forex Department
Physical Surveillance Department
Building & Engineering Department
Treasury
Management Department
Information Technology Department
Financial Accounting Department
Investment Department
Personnel Affairs
Department
Credit Department
Foreign Department
Supply Department Security
International Division
Human Resources
Development Affairs
LegalDepartment
Bank Saderat Iran (BSI)
B r a n c h N e t w o r kWith over 2,700 domestic branches, Bank Saderat Iran has the largest network of branches among all Iranian banks. This reflects upon the fact that BSI is among the dominating banks within the Iranian market. The extensive branch network also enables BSI to provide its services to people in the remotest corners of Iran. However, in order to further optimize productivity and to reduce operational expenses, the Bank’s management has in the recent years decided to reduce the number of its branches. The following chart demonstrates BSI’s falling number of branches in the recent years:
Number of Branches
2012-2013
2,79
5
2013-2014
2,71
4I n t e r n a t i o n a l B a n k i n g & F o r e x S e r v i c e s In order to support the growing trade between Iranian and European merchants, BSI began to provide trade finance through its branch in Hamburg, over half a century ago. To further expand its international operations, BSI management was quick to recognize the need for an appropriate geographic structure as a means to provide a strong platform for its mentioned trade finance. Hence, other overseas branches were established in carefully situated locations at the heart of dynamic markets such as London, Paris, and Persian Gulf States such as the UAE etc.
Today, with over 21 overseas branches, 3 regional offices, 2 independent banks, BSI has the largest network of international branches among other Iranian banks.
Although trade finance is the core business of BSI international operations, a wide variety of foreign currency related services are also offered through its overseas units and some of its branches at home. These services include: opening different type of accounts, granting credit facilities, issuing guarantees, forex services, opening letters of credit etc.
A w a r d s & D i s t i n c t i o n s
C o m p l i a n c e & A n t i - M o n e y L a u n d e r i n g M e a s u r e s
Due to the high quality of services rendered, BSI has received a number of international awards and distinctions, some of which are as follows:
• Brand Valuation Certificate & ISO 10668:2010 from ICS Group – Canada
• ISO 9001 Quality Management Standard Certificate
• International Certificate on Clients Trust in the Banking Industry from ICS Group – Canada
At BSI, we are particularly dedicated to combatting money laundering, not only due to the fact that we are bound by requirements as set forth by regulatory bodies such as the Central Bank of the Islamic Republic of Iran, the Ministry of Economic Affairs & Finance, High Council of Anti-Money Laundering or legal mandates set by the Labour and Commercial Codes and other relevant laws, but also as a financial institution we feel it our moral duty to contribute in riding society of such criminal activities.
Some of our numerous measures taken in this regard include: organizing training sessions in order to familiarize our employees with AML rules and regulations; notifying all our units with AML instructions; designing and installing the latest and state-of-the-art AML systems, constantly updating the list of persons suspected of carrying out money laundering and submitting it to all users at our branches, providing cash transaction reports (CTR) to the Financial Information Centre of the Ministry of Economic Affairs & Finance on transactions exceeding the legal daily limit, etc.
• Good Recruitment Practice Certificate awarded by ICS Group - Canada
• Banking Security Services Certificate awarded by ICS Group – Canada
• Majestic Five Continents Award for Quality & Excellence – Switzerland
• Obtaining a 259th ranking among the world’s top 1,000 banks in terms of capital, from the Banker
Bank Saderat Iran (BSI)
C a p i t a l A d e q u a c y R a t i o
Capital adequacy ratio (CAR), is a ratio of a bank’s capital against risk. By calculating and determining CAR, Iran’s national regulator, which is the Central Bank of the Islamic Republic of Iran (CBI) aims to protect the depositors, the shareholders and the banks themselves, by ensuring that they are capable of withstanding a reasonable amount of
F i n a n c i a l P e r f o r m a n c e i n B r i e f
22,3
7559
,350
603,
813
5,13
6
31,7
5283
,651
712,
041
5,92
6
32,8
2710
6,12
0
842,
764
6,92
7
2011
2011
2011
2011
2012
2012
2012
2012
2013
2013
2013
2013
Investments
Income
Assets
Net Profits
billion IRR
billion IRR
billion IRR
billion IRR
loss. If the ratio is too high, then the bank is not optimizing its resources and if too low, it becomes more vulnerable to risk. The CBI requires the CAR of Iranian banks to be at least 8%.
The capital adequacy ratio of BSI was 8.28% during the reporting financial period.
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onso
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alan
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ther
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Tax
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redi
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ents
& p
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4,72
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visi
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22,6
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3
Non
-cur
rent
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et re
ady
for s
ale
-11
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,191
Tota
l lia
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772,
371,
727
646,
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Tang
ible
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ent C
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visi
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Fore
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Tota
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com
mitm
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k’s
com
mitm
ents
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ette
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nts’
com
mitm
ents
for g
uara
ntee
s 65
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,216
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ank’
s co
mm
itmen
ts fo
r gua
rant
ees
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ther
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k’s
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anag
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Bank Saderat Iran (BSI)
Ban
k Sa
dera
t Ira
n (P
ublic
Joi
nt S
tock
)C
onso
lidat
ed B
alan
ce S
heet
At M
arch
20,
201
4
Ass
ets:
Mar
ch 2
0, 2
014
Res
tate
dM
arch
20,
201
3Li
abili
ties:
Mar
ch 2
0, 2
014
Res
tate
dM
arch
20,
201
3m
illio
n IR
Rm
illio
n IR
Rm
illio
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Rm
illio
n IR
R
Cas
h 10
,068
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7,68
3,74
0D
ues
to C
entra
l Ban
k60
1,80
31,
023,
703
Due
s fro
m c
entra
l ban
ks86
,590
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07,5
53D
ues
to b
anks
and
cre
dit i
nstit
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ns89
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69,2
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13
Due
s fro
m b
anks
and
cre
dit i
nstit
utio
ns21
,486
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eman
d de
posi
ts
138,
722,
749
132,
074,
327
Due
s fro
m G
over
nmen
t51
,934
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40,4
24,6
86S
avin
g &
sim
ilar d
epos
its
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59,9
4954
,564
,345
Faci
litie
s gr
ante
d an
d cl
aim
s fro
m p
ublic
sec
tor
3,60
6,05
94,
335,
840
Term
inve
stm
ent d
epos
its41
9,25
7,44
130
7,36
9,45
6
Faci
litie
s gr
ante
d to
oth
er p
eopl
e 41
5,55
6,88
135
2,08
2,73
5O
ther
dep
osits
31,1
52,0
2629
,467
,749
Due
und
er le
tters
of c
redi
t and
term
bill
s of
exc
hang
e7,
086,
133
11,3
38,6
08P
rovi
sion
s &
oth
er li
abili
ties
33,3
52,9
5437
,142
,455
Oth
er a
ccou
nts
rece
ivab
le
56,1
91,0
5744
,476
,061
Tax
paya
ble
634,
984
2,10
0,97
6
Par
ticip
atio
n bo
nds
& o
ther
sim
ilar b
onds
43,0
78,3
0639
,222
,141
Due
und
er le
tters
of c
redi
t & F
orex
bill
s3,
614,
232
8,14
8,45
7
Inve
stm
ents
& p
artic
ipat
ion
7,61
4,72
67,
277,
788
Pro
visi
on fo
r sta
ff te
rmin
atio
n be
nefit
s6,
656,
126
5,15
6,38
6
Inve
stm
ent i
n af
filia
ted
com
pani
es
22,6
83,8
6021
,197
,149
Div
iden
ds p
ayab
le17
5,17
825
9,86
3
Non
-cur
rent
ass
et re
ady
for s
ale
-11
,599
,191
Tota
l lia
bilit
ies
772,
371,
727
646,
538,
630
Tang
ible
fixe
d as
sets
69,9
90,6
9164
,766
,126
Shar
ehol
ders
’ equ
ity:
Inta
ngib
le a
sset
s2,
676,
125
2,41
6,91
8C
apita
l (di
vide
d in
to 5
7,80
0,00
0,00
0 sh
ares
IRR
1,00
0 ea
ch)
57,8
00,0
0022
,906
,142
Oth
er a
sset
s54
,825
,555
31,6
02,7
46S
hare
s of
the
Par
ent C
ompa
ny in
ow
ners
hip
of
subs
idia
ry c
ompa
nies
(3
1,71
3)(1
43,7
71)
In-tr
ansi
t ite
ms
7,57
7,97
13,
233,
198
Res
erve
s 5,
567,
589
4,43
9,40
0
Sur
plus
of r
eval
uatio
n of
fixe
d ta
ngib
le a
sset
s-
34,8
87,3
57
Diff
eren
ce o
f adj
ustm
ents
resu
lting
from
exc
hang
e ra
te u
nific
atio
n1,
245,
144
1,24
5,14
4
Pro
visi
on fo
r exc
hang
ing
Fore
x as
sets
& li
abili
ties
4,06
8,12
94,
232,
534
Ret
aine
d ea
rnin
gs19
,207
,307
12,1
96,7
86
Tota
l ban
k’s
shar
ehol
ders
’ equ
ity
87,8
56,4
5679
,763
,592
Min
ority
inte
rest
739,
225
812,
877
Tota
l sha
reho
lder
s’ e
quity
88,5
95,6
8180
,576
,469
Tota
l ass
ets
860,
967,
408
727,
115,
099
Tota
l lia
bilit
ies
& s
hare
hold
ers’
equ
ity
860,
967,
408
727,
115,
099
Clie
nts’
com
mitm
ents
for l
ette
rs o
f cre
dit
22,7
03,8
0721
,454
,414
Ban
k’s
com
mitm
ents
for l
ette
rs o
f cre
dit
22,7
03,8
0721
,454
,414
Clie
nts’
com
mitm
ents
for g
uara
ntee
s 65
,300
,216
61,8
14,4
33B
ank’
s co
mm
itmen
ts fo
r gua
rant
ees
65,3
00,2
1661
,814
,433
Oth
er c
lient
s’ c
omm
itmen
ts15
,675
,929
11,7
79,9
90O
ther
ban
k’s
com
mitm
ents
15,6
75,9
2911
,779
,990
Man
aged
fund
s &
sim
ilar i
tem
s 10
,331
,275
10,1
52,7
17M
anag
ed fu
nds
& s
imila
r ite
ms
party
10,3
31,2
7510
,152
,717
Bank Saderat Iran (Public Joint Stock)Consolidated Profit & Loss Statement
For the Fiscal Year Ended March 20, 2014
20.03.2014 20.03.2013
million IRR million IRR million IRRJoint incomes:Profit from granted facilities 45,852,239 33,221,841
Profit from investments & deposits 20,281,292 21,420,874
Bank’s income from joint investments 66,133,531 54,642,715
On-account profit of investment deposits (59,762,450) (41,913,521)
Difference in final profit & investment on-account deposits - (1,115,881)
Depositors’ profit quota (59,762,450) (43,029,402)
Bank’s quota from joint incomes (include attorney fee) 6,371,081 11,613,313
Non-joint incomes:Commission income 5,223,443 4,843,073
Result of Forex transactions 106,191 525,716
Other incomes 38,219,637 26,421,884
Non-joint incomes 43,549,271 31,790,673
Total incomes 49,920,352 43,403,986
Less:
General & administrative expenses (23,708,688) (17,803,475)
Dues value decrease expenses (3,753,014) (7,624,779)
Financial expense (2,894,886) (1,711,714)
Commission expense (3,045,071) (2,447,013)
Other expenses (5,163,306) (4,808,441)
Total expenses (38,564,965) (34,395,422)
Profit before tax 11,355,387 9,008,564
Tax (1,467,090) (1,120,622)Net profit 9,888,297 7,887,942
Minority interest from profit of the current year 117,827 73,910
Base profit of each share - IRR 171 136
Flow of Consolidated Retained Profit AccountNet Profit 9,888,297 7,887,942
Retained profit at the beginning of the year 6,207,779 3,554,503
Prior years’ adjustment 5,989,007 (363,808)
Retained profit at the beginning of the year – Adjusted 12,196,786 3,190,695
Allocable profit 22,085,083 11,078,637
Consolidated prior years’ adjustment 613,494 3,295,068
Capital increase (6,501) -
Legal Reserve (1,169,180) (1,027,590)
Dividend (2,313,338) (1,145,308)Bonus of the Board of Directors (Group member companies) (2,251) (4,021)
Profit allocation (3,491,270) (2,176,919)
Retained earnings at the end of the year 19,207,307 12,196,786
Minority interest from retained earnings 141,839 133,878
Bank Saderat Iran (Public Joint Stock)Consolidated Cash Flow Statement
For the Fiscal Year Ended March 20, 2014
2013-2014 Restated 2012-2013
million IRR million IRR million IRROperating activities:
Net cash inflow from operating activities 21,456,792 31,726,073Investment returns and interest paid for financing: Profit paid for financial facilities received (2,894,886) (1,711,714)
Dividend received 1,956,683 793,778
Dividend paid to shareholders (2,375,299) (3,185,784)Net cash inflow (outflow) from investment returns (3,313,502) (4,103,720)
Income tax:
Income tax paid (504,181) (930,320)
Investment activities: Funds paid for direct investment & legal participation (1,557,465) (1,146,992)
Funds received from direct investment & legal participation 2,298,939 4,410,562
Funds paid for purchasing fixed tangible assets (2,323,061) (439,728)
Funds received from sales of fixed tangible assets 1,050,717 380,488
Net cash inflow (outflow) from investment activities (530,870) 3,204,330
Net cash inflow (outflow) before financing activities 17,108,239 29,896,363
Financing activities:Increase (decrease) in financial facilities received (141,563) (11,680,804)
Foreign currency exchange profit (loss) 15,928 78,858
Net cash inflow (outflow) 16,982,604 18,294,417
Cash balance at beginning of the year 21,529,671 3,235,254
Cash balance at end of the year 38,512,275 21,529,671
Non-cash transactions 2,358,787 17,570,084
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