Baku, Azerbaijan, Sept. 19
By Azad Hasanli - Trend:
In January-August 2018, the total loan portfolio of Azerbaijani banks has increased by five percent compared to the beginning of the year, reaching 11.9 billion manats.
The reserves amounting to almost 1.66 billion manats have been created on the basis of those five percent, as appears from the report of the Financial Markets Supervision Chamber released Sept. 19.
The total assets of the banking sector have increased by 0.8 percent to almost 28.13 billion manats over the same period. During the reporting period, the banks had at their disposal the cash money in the amount of about 1.3 billion manats. The total sum of the funds deposited in correspondent accounts in the Central Bank amounted to 2.1 billion manats, having increased by 3.5 percent in eight months. The amount of funds deposited in nostro accounts (accounts in other banks) has decreased by almost 32 percent to 1.79 billion manats.
Within eight months, the banks have increased investments in securities by 31.2 percent to 3.28 billion manats.
The deposits of banks in other financial institutions have decreased from 7.2 billion to 6.7 billion manats.
Capitalization and liabilities of banks
On the contrary, the banks' total liabilities have decreased by 0.5 percent to 24.08 billion manats. The banks' liabilities to the Central Bank of Azerbaijan have also decreased from 507.6 million manats to 410.4 million manats.
The growth for both individuals (from 7.5 billion to 7.9 billion manats) and legal entities (from 9.35 billion to 9.4 billion manats) has been recorded in the structure of the deposit portfolio. The total deposit portfolio has grown by 2.4 percent, amounting to 17.35 billion manats.
The deposits of financial institutions have decreased from 1.8 billion to 1.2 billion manats.
The capitalization of the banking sector has increased by 9 percent, reaching 4.05 billion manats.
Incomes and expenses of banks
Azerbaijan's banks have finished the eighth month of 2018 with a total profit of 103.8 million manats. They have paid profit tax in the amount of 21.5 million manats. During the reporting period, the banks have created special reserves in the amount of 316.4 million manats in order to cover possible losses.
The banks’ revenues have amounted to almost 1.5 billion manats (interest revenues – 1.14 billion manats, non-interest revenues - 347.8 million manats), including payment of interests under loans which amounted to 791.9 million manats.
The expenses of the banks have amounted to 1.05 billion manats (interest expenses – 394.1 million manats, non-interest expenses - 651.2 million manats), of which 258.1 million manats have been used to pay interests on deposits.
The operating profit of the banks has amounted to 441 million manats.
Number of banks, shareholders and staff
During the reporting period, 30 banks including two state banks and 15 banks with foreign capital have been operating in Azerbaijan.
There are eight banks, where the share of foreign shareholders ranges between 50 and 100 percent of the share capital, and there are seven banks where the share of foreign shareholders is less than 50 percent of the share capital. These figures have not changed during 2018.
The number of bank branches has increased slightly – from 509 to 511, and the number of banking centers – from 142 to 143. The number of ATMs has increased by 37, reaching 2,468 at the end of August 2018.
The number of full-time employees of banks has also increased from 16,171 to 16,928 persons.
The official exchange rate on September 19 is 1.7 AZN/USD.
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