FIMSA: Capitalization of Azerbaijani banking sector to grow (UPDATE)

Business Materials 1 March 2018 17:26 (UTC +04:00)

Details added (first version posted on 12:36)

Baku, Azerbaijan, March 1

By Anvar Mammadov - Trend:

Capitalization of Azerbaijani banks will continue to increase in 2018, Asim Zulfugarov, deputy executive director and director of Strategic Services Department of Azerbaijan’s Financial Market Supervisory Authority (FIMSA), said at an annual meeting of Fitch Ratings in Baku March 1.

Zulfugarov noted that this is related to the capital injections by the banks of Azerbaijan.

“Since the beginning of this year, a number of Azerbaijani banks have already increased their authorized capital. Moreover, currently, we expect further growth of market capitalization, as a number of banks plan to inject capital in the total amount of 400 million manats,” he added.

Zulfugarov noted that in 2017, banks in Azerbaijan allocated about 900 million manats for capitalization. He added that the total capitalization of the banks in Azerbaijan amounted to 3.71 billion manats by the end of the year.

“Last year, the aggregate profit of banks amounted to 883.6 million manats,” he said. “A total of 19 banks completed the year with profit, and the remaining 11 banks completed last year with loss.”

Thirty banks operate in Azerbaijan.

(1.7001 manats = 1 USD on March 1)