CBA: Azerbaijani banks optimize administrative costs
Azerbaijan, Baku, June 7 / Trend N.Ismayilova /
Banking asset profitability amounted to 1.3 percent in Azerbaijan in the first quarter of 2010 compared to 3.3 percent over the same period of 2009, the Central Bank of Azerbaijan (CBA) reported.
Equity returns were 9.7 percent compared to 23.7 percent in the first quarter of 2009.
Banking system profits (before taxes) amounted to 38.2 million manat in the first quarter, which is 52 million manat less than the same period last year. Profits after tax fell by 52 percent to 38 million manat.
As a result of lower interest rates in the banking system, interest income fell by four percent to 248.6 million manat. Non-interest income fell by 14 percent to 59.5 million manat.
Bank interest expenses grew by 13.7 percent in the first quarter to 132.5 million manat. The increase was associated with changes to banking funding sources. Additionally, the share of interest expense to average total assets declined from 4.8 percent to 4.5 percent.