Irans banking industry has a 90-year history. There are currently 30 banks and 4 financial/credit institutions active in Iran, where banks are the main source of funding for development plans and companies. Twenty of Iranian banks have been listed in Tehran Stock Exchange. Currently government plans the expansion of online banking and modernization of banking systems that at the moment are far from international standards. International sanctions on systems associated with the transfer of money were one of the obstacles preventing the development of Irans banking industry. With the lifting of these sanctions international cooperation and transfer of money to/from Iranian banks will become possible once again. The most important weakness of Iranian banking sector is, many of Iranian bank financial resources are invested in real estate market and depression in this market faces banks with liquidity and credit risks. The average P/E ratio in banking industry is 5.32x. In the table below, you can see value and share of each bank in this industry.
Listed banks in Tehran Stock Exchange
| Company Name | Symbol | Market Value ($) | Percentage of Industry |
|---|---|---|---|
| Bank Mellat | BMLT1 | 2,158,888,889 | 17.39% |
| Bank Pasargad | BPAS1 | 1,647,800,000 | 13.25% |
| Bank Saderat Iran | BSDR1 | 1,419,311,111 | 11.46% |
| Bank Tejarat | BTEJ1 | 1,176,775,000 | 9.49% |
| Bank Parsian | BPAR1 | 731,280,000 | 5.89% |
| Mehr Eghtesad | VMHP1 | 383,333,333 | 3.09% |
| Eghtesad Novin | NOVN1 | 513,753,333 | 4.14% |
| Sina | VSIN1 | 422,222,222 | 3.40% |
| Karafarin | KRAF1 | 655,444,444 | 5.28% |
| Ansar | BANS1 | 557,111,111 | 4.49% |
| Ayandeh | AYNP1 | 266,666,667 | 2.15% |
| Saman | BSAP1 | 251,333,333 | 2.03% |
| Sarmayeh | IBKZ1 | 112,666,667 | 0.91% |
| Ghavamin | GHMP1 | 220,666,667 | 1.79% |
| Hekmat | BHKZ1 | 144,222,222 | 1.16% |
| Middle east | BKHZ1 | 319,333,333 | 2.58% |
| Iranzamin | ZMNZ1 | 236,666,667 | 2.03% |
| Post | BPST1 | 117,571,871 | 0.96% |
| Tourism | GRDZ1 | 236,000,000 | 1.90% |
| Dey | BDYZ1 | 210,416,667 | 3.59% |
| Total | 96.54% |
Banking Industrys Return in Recent Years
Source: Tehran Securities Exchange Technology Management Co.
| Company Name | Symbol | No. Branch | No. Employee | Capital Adequacy |
|---|---|---|---|---|
| Bank Mellat | BMLT1 | 1,606 | 22,020 | 7.34% |
| Bank Pasargad | BPAS1 | 327 | 3,685 | 19.84% |
| Bank Saderat Iran | BSDR1 | 2,610 | 31,944 | 10.34% |
| Bank Tejarat | BTEJ1 | 1,811 | 19,065 | 6.70% |
| Bank Parsian | BPAR1 | 293 | 4,486 | 7.07% |
| Mehr Eghtesad | VMHP1 | 734 | 6,033 | 5.60% |
| Eghtesad Novin | NOVN1 | 251 | 3,126 | 7.99% |
| Sina | VSIN1 | 255 | 2,363 | 14.80% |
| Karafarin | KRAF1 | 101 | 1,867 | 17.10% |
| Ansar | BANS1 | 677 | 5,230 | 8.90% |
| Ayandeh | AYNP1 | 165 | 3,249 | 3.20% |
| Saman | BSAP1 | 145 | 2,509 | 8.34% |
| Sarmayeh | IBKZ1 | 143 | 1,379 | 5.20% |
| Ghavamin | GHMP1 | 763 | 6,776 | 2.30% |
| Hekmat | BHKZ1 | 126 | 1,070 | 29.00% |
| Middle East | BKHZ1 | 11 | 282 | 13.60% |
| Iranzamin | ZMNZ1 | 351 | 2,312 | 7.60% |
| Post | BPST1 | 406 | 2,869 | 6.62% |
| Tourism | GRDZ1 | 51 | 657 | 7.00% |
| Dey | BDYZ1 | 80 | 1,105 | 8.00% |
In conclusion, bank industry has 14.3% of market share and 2.5% of GDP. Therefore, it is one of the major industry in Iran and after lifting sanctions has a vital role in connection with international economy. For this, investment in banking sector
