Azerbaijani banks decrease consumer lending volumes
Baku, Azerbaijan, March 10
By Anvar Mammadov - Trend:
Azerbaijani banks decreased the consumer lending volume to 8.07 billion manat in January 2016 or by 3.7 percent less than in December 2015, said the Central Bank of Azerbaijan's report March 9.
The consumer lending volume increased by 4.5 percent during the year.
A decrease in consumer lending in Azerbaijan in mid. 2015 began after the first devaluation of the manat rate [the dollar rate increased by almost 34 percent February 21, 2015].
The consumer lending increased by almost nine percent in February. The banks reduced the consumer crediting volume by 1.4 percent in March, 1.2 percent in April, 1.88 percent in May, 1.97 percent in June and 1.5 percent in July.
The consumer lending decreased by 0.4 percent in November (compared to October).
However, the largest part of the total loan portfolio of banks - 38.1 percent (as of January) accounts for the consumer loans.
The construction and real estate sector (14.5 percent or 3.07 billion manat) ranked second on the share in the total loan portfolio of banks. The trade and services (13.7 percent or 2.9 billion manat) ranked third.
Around 8.9 percent was directed to the industry and production. In nominal terms it amounts to 1.88 billion manat.
The share of transport and communication hit 7.1 percent (1.5 billion manat), agriculture and processing reached 2.1 percent (441.1 million manat), energy, chemistry, and natural resources - 1.5 percent (310.3 million manat).
According to the CBA, as of February 1, 2016, the total volume of loans granted by banks totaled 21.19 billion manat, including 10.21 billion manat (48.18 percent) - in national currency and 10.98 billion manat (50.7 percent) - in freely convertible currency.
Some 43 banks operated in Azerbaijan as of late 2015 (two of them are state-owned) and 157 non-bank commercial organizations, including 109 credit unions.
The licenses of six banks were revoked in January. The license of one of them - NBC Bank was restored February 2.
The official exchange rate is 1.6228 AZN/USD as of March 10.