Baku, Azerbaijan, Oct. 29
By Azad Hasanli – Trend:
The capitalization of the banking sector of Azerbaijan in September 2018 amounted to 4.1 billion manats, which is 10.8 percent more than the figure at the beginning of the year, said the report of the Financial Market Supervision Authority.
According to the report, the total assets of banks since the beginning of the year increased by 20.6 percent, reaching 29.2 billion manats. In the reporting period, the volume of cash at the disposal of banks amounted to almost 1.38 billion manats, the correspondent accounts at the Central Bank contained 2.4 billion manats and the funds on the nostro accounts (correspondent accounts with other banks) - almost 2.06 billion manats. Bank investments in securities reached 3.37 billion manats (a 34.7 percent increase since the beginning of the year).
Since the beginning of the year, banks increased lending by five percent and by the end of September, the total loan portfolio of banks amounted to 11.9 billion manats. Provisions for these loans were created for 1.65 billion manats.
The total liabilities of the country's banking sector increased by 3.6 percent to 25.1 billion manats. The largest share of liabilities fell on deposits - 72.7 percent, or 18.25 billion manats (8 percent growth since early 2018). The volume of deposits of individuals amounted to 8.1 billion manats, legal entities - 10.13 billion manats.
The liabilities of banks to the Central Bank decreased from 507.6 million to 409.3 million manats.
The net profit of the banking sector over the first nine months amounted to 171.8 million manats. Profit was formed at the expense of interest income at 1.29 billion (including 899.4 million manats - income from interest on loans) and non-interest at 393.3 million manats. The interest expenses of banks amounted to 441.1 million manats, including the payment of interest on deposits - 288.6 million manats, non-interest - 731.4 million manats.
As a result, operating income of 509.1 million manats was formed. During the reporting period, the banks also allocated 313.7 million manats to cover potential losses on assets and paid 24.8 million manats as a profit tax.
As many as 30 banks operate in Azerbaijan, including two with state participation.