BAKU, Azerbaijan, April 4. Azerbaijani banks remained stable in 2022 with an increase in revenues of 31.5 percent, Trend reports via the latest Asian Development Outlook from Asian Development Bank (ADB).
According to the report, this growth reflects increase in private consumption. At the same time, the deposits increased by 28 percent during the reporting period.
"Loans to households rose by 11.1 percent. Net bank profits rose by 70.1 percent in 2022, supported by high interest margins," the report added.
ADB noted that the share of impaired loans in total lending declined significantly from 4.2 percent in 2021 to 0.3 percent in 2022.
"Deposit dollarization fell slightly from 49.4 percent at the end of 2021 to 48.4 percent a year later, while loan dollarization declined from 25.8 percent to 19.7 percent. Broad money expansion rose from 18.7 percent in 2021 to 23.6 percent," the bank added.
Meanwhile, ADB forecasts Azerbaijan's GDP growth to moderate in 2023 and accelerate slightly in 2024.
"Its slowing to 3.5 percent in 2023 will reflect less expansion in the non-hydrocarbon economy, and it will likely recover to 3.8 percent in 2024 along with oil production following the rehabilitation of oil field infrastructure in 2022," the report said.