The bank, under the leadership of President and Chairman Bilal Sabah Hussein, has maintained a cash collateral ratio of 110% for all cash-backed Letters of Guarantee (LGs), thereby ensuring sufficient liquidity to meet financial obligations and minimise the risk of default on counter-guarantees. The feat has been achieved through partnerships with reputable international banks, resulting in TBI earning a [BBB-] rating or higher from major agencies like Fitch. In 2024, TBI earned approximately USD 11 million in revenue from Letters of Guarantee.

To maintain operational integrity, TBI has taken various measures, including strengthening its auditing processes, particularly in relation to LGs, through the Anti-Money Laundering and Counter-Terrorism Financing Department. This department conducts strict due diligence on all involved parties and verifies the sources of funds, ensuring full compliance with applicable laws and regulations enforced by the bank’s Compliance Department.

In recognition of these reforms and their contributions to uplifting the Iraqi economy, TBI was awarded “Best Trade Bank – Iraq 2024” and “Best Capitalised Bank – Iraq 2024″ at the recently concluded International Finance Awards. This prestigious recognition further highlights the bank’s continued commitment to supporting Iraq’s economy and promoting sustainable growth.

Trade Bank of Iraq has also adopted advanced internal financial audits to meet banking standards, apart from optimising its ratio of uncovered LGs in line with Fitch’s standards. TBI facilitated approximately USD 15 billion in outward foreign remittances by 2024, while inward foreign remittances totalled around USD 3 billion. The bank also generated approximately USD 40 million in revenues from Letters of Credit (LCs) in 2024. The LC department plays a vital role in financing international trade, supporting imports and exports, apart from offering products to individual and corporate clients to meet their financial needs.

In support of Iraq’s economic development, TBI’s management has executed several sovereign guarantee agreements on behalf of the Iraqi government. These agreements aim to support industrial projects that boost economic growth and create job opportunities for youth. A key initiative in this effort includes a loan financing agreement with the Japan International Cooperation Agency (JICA) for approximately USD 200 million. Additionally, TBI signed a memorandum of cooperation with Germany’s Euler Hermes, the Export Credit Agency (ECA). These agreements are designed to help Iraqi companies meet international standards, improve the quality of Iraqi industries, and facilitate access to global financing.

TBI remains dedicated to expanding and enhancing its operations in line with international anti-money laundering and counter-terrorism financing standards. The bank is also committed to maintaining global banking compliance, improving financial performance, and boosting profitability to further support Iraq’s national economy. Additionally, TBI is actively involved in various social initiatives that support different community segments and consistently provides support to Iraqi government institutions.

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In China, the bank is planning to open a representative office whereas in Abu Dhabi, the bank planning to upgrade its licence to an asset management company.

Trade finance contributed heavily to Trade Bank of Iraq’s $550 million revenue in 2018. The bank helps fund about 80 percent of the trade finance business in the country. The bank, owned by Iraq’s government, has assets worth $30 billion.

“With our expansion, in China, Abu Dhabi and Saudi Arabia, retail and international business will contribute 30 percent of our total revenues by the end of the next three years,” chariman Faisal Al Haimus told the media. TBI recently established its branch in Riyadh, Saudi Arabia. The branch, to be operational from September, will focus on trade finance.

The bank also opened its new headquarters in the city of Baghdad. Located on Al Rasheed Street, the headquarters is designed to facilitate collaboration as it will bring 670 employees of the bank in Baghdad under one roof. According to reports, the bank recently backed out from a deal to take over an unnamed Gulf Bank. TBI is also interested to buy a commercial bank in Turkey.

According to Faisal Al Haimus, TBI is still looking at potential banks that they could acquire. Since TBI plays a big role in the rebuilding of Iraq and infrastructure development, a takeover will help bolster the bank’s balance sheet that has grown to $30 billion in size,

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