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

Banking Industry 2Source: 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