The capitalization of the banking sector of Azerbaijan in September amounted to 4.1 billion manats, up by 10.8% from the beginning of the year, said the report of the Financial Market Supervision Authority.
According to the report, the total assets of banks since the beginning of the year have increased by 20.6%, reaching 29.2 billion manats. In the reporting period the volume of cash at the disposal of banks amounted to almost 1.38 billion manats, the correspondent accounts at the Central Bank contained 2.4 billion manats and the funds on the nostro accounts (correspondent accounts with other banks) – almost 2.06 billion manats. Bank investments in securities reached 3.37 billion manats (+34.7%).
Since the beginning of the year banks have increased lending by 5% and as of the end of September the total loan portfolio of banks has amounted to 11.9 billion manats. Provisions for these loans were created for 1.65 billion manats.
The total liabilities of the country’s banking sector increased by 3.6%, to 25.1 billion manats. The largest share of liabilities fell on deposits – 72.7%, or 18.25 billion manats (+8%). The volume of deposits of individuals amounted to 8.1 billion manats, and legal entities – 10.13 billion manats.
The liabilities of banks to the Central Bank decreased from 507.6 million to 409.3 million manats.
The net profit of the banking sector over the first nine months amounted to 171.8 million manats. Profit was formed at the expense of interest income at 1.29 billion (including 899.4 million manats – income from interest on loans) and non-interest at 393.3 million manats. The interest expenses of banks amounted to 441.1 million manats, including the payment of interest on deposits – 288.6 million manats, and non-interest – 731.4 million manats.
As a result, operating income of 509.1 million manats was formed. During the reporting period, the banks also allocated 313.7 million manats to cover potential losses on assets and paid 24.8 million manats as a profit tax.
As many as 30 banks operate in Azerbaijan, including two with state participation. (Trend/Business World Magazine)
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