Capitalization of Azerbaijan's banking sector increases in 2018

  28 January 2019    Read: 1700
 Capitalization of Azerbaijan

The capitalization of the banking sector of Azerbaijan as of late December 2018 amounted to 4.071 billion manats, which is 9.78 percent more than the figure at the beginning of the year, reports referring to the Financial Market Supervision Authority (FIMSA).

As the FIMSA report said, the total assets of banks since the beginning of the year increased by 5.66 percent, reaching 29.502 billion manats. In the reported period, the volume of cash at the disposal of banks amounted to almost 1.364 billion manats, the correspondent accounts at the Central Bank contained 2.333 billion manats and the funds on the nostro accounts (correspondent accounts with other banks) - almost 1.959 billion manats.

Bank investments in securities reached 3.587 billion manats (a 43.54 percent increase since the beginning of the year).

Since early 2018, banks increased lending by 11.38 percent and by the end of December, the total loan portfolio of banks amounted to 12.628 billion manats. Provisions for these loans were created for 1.479 billion manats.

The total liabilities of the country's banking sector increased by 5.03 percent to 25.431 billion manats. The largest share of liabilities fell on deposits - 73.6 percent, or 18.581 billion manats (9.98 percent growth since early 2018). The volume of deposits of individuals amounted to 8.27 billion manats, legal entities - 10.31 billion manats.

The liabilities of banks to the Central Bank decreased from 507.6 million to 384.7 million manats.

The net profit of the banking sector over 2018 amounted to 883.6 million manats. Profit was formed at the expense of interest income at 1.775 billion (including 1.283 billion manats - income from interest on loans) and non-interest at 938.5 million manats.

The interest expenses of banks amounted to 824.9 million manats, including the payment of interest on deposits - 373.4 million manats, non-interest - 980.6 million manats.

As a result, operating income of 908.2 million manats was formed. During the reporting period, the banks paid 55.1 million manats as a profit tax.

As many as 30 banks operate in Azerbaijan, including two with state participation.

More about: Azerbaijan