Iran’s Banking Industry

Posted on Posted in Business Guidelines

• Iran’s banking industry has a 90-year history.
• There are currently 30 banks and 5 financial/credit institutions active in Iran.
• 20 private banks, 5 specialized government banks, 3 commercial government-owned banks, 2 Gharzolhasaneh bank (Islamic non-profit granting funds).
• 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
• According to IMI100 rankings 2015, Melli Bank is the most valuable holding in the banking industry and the third among all industries.
• 26 out of IMI100 are in banking and financial services industry.
• Melli Bank as the biggest bank of Iran has more than 3330 branches and 45000 employees.
• Saderat Bank as the second biggest bank of Iran has more than 2700 branches and 32000 employees.
• Banking industry has 14.3% of market share and 2.5% of GDP.

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