hen Bank Standard opened its new headquarters in Baku at no. 4, Hajiyev Street, many people took notice. After all, the bank plays a special role in Azerbaijan’s financial sector. Its Western practices and innovative approach are patent at its branch offices. Even its subtle annual report speaks of sophistication. As the leading private bank in the country, Bank Standard is a trendsetter contributing to national development. It is known for the efficiency of its branch network. So then why do 90 percent of Azeris still prefer to hoard their savings at home?

AB Standard’s blueprint for continued success is based on diversity. The bank holds interests in a broad sphere of non-oil sector industries.

Mostly, it is a matter of trust. Emin Babayev (INTERVIEW) wants to change all that by selling financial know-how. As Vice-President of AB Standard Group, he feels the responsibility to educate people. Babayev is committed to classical banking products, such as loans and project finance. But he thinks the future hinges on introducing non-traditional products. Modern in outlook, he embodies a new generation of Azeri financiers. An innovative thrust can go a long way in establishing credibility, after all. “I think image is critical. We’re trying to build our corporate image based on quality, stability and openness,” says Mr. Babayev.

Key indicators at Bank Standard speak of breakneck growth. In 2005, the total volume of assets exceeded $100 million, representing an increase of 31 percent. The landmark number was hailed as the breaking of a psychological barrier for the country’s private banking sector. By end-2006, the figure had more than doubled to approach $250 million. Meanwhile, the bank’s credit portfolio had grown to $50 million by December of last year and its customer base was up by 39 percent year-on-year. Now the aggregate capital of the bank is approaching $18.9 million. Profit in the first three quarters of 2005 rose to $3.8 million.

“By Azeri standards, our bank is large. But in terms of international banking, we are still a small player. We want to become a medium-sized bank with good ratings over the next ten years,” says Mr. Babayev. Bank Standard finances large-scale projects at competitive rates in 12 different regions of Azerbaijan. Several projects in sectors like construction and telecommunications could spark interest among foreign investors. For Mr. Babayev, the bank’s dynamic growth will remain closely related to the country’s overall performance. As it absorbs hard cash from the oil sector, it may only be a matter of time before people feel confident enough to take the money from under the pillowcase.

The core activities of AB Standard Group are banking and insurance. But beyond its financial bloc of insurance and brokerage firms, there are ten other subsidiaries in different sectors. The group has ambitious plans in the non-oil sector to ensure future growth. There is a brick manufacturing plant and a fish cannery in Siyazan. At Darnagul Boru, it runs a polyethylene plant that produces polymer pipes for industry. Located outside of Baku, the plant supplies components for power lines, heating systems and gas transportation. Agribusiness is its third tier of activities. AB Pro, a subsidiary, has several locations for vegetable canneries, juice processing plants and tea plantations.

“We’re also in the travel business. AB Travel, in Baku, is a member of a global network geared toward business travelers,” says Babayev. The travel agency is a member of IATA and has agreements with major airlines: Turkish Airways, British Airways and Lufthansa. One of its missions is to develop Azerbaijan’s long-term potential as a tourist destination. In the southern town of Lankaran, for example, AB Standard operates the four-star Qala Hotel. Surrounded by wild mountain rivers and waterfalls near the Caspian Sea, a visit to Lankaran is a true Azeri delight.