Baku, Azerbaijan, May 31
By Kheyraddin Nasirzade – Trend:
Capitalization of the banking sector of Azerbaijan amounted to 4.41 billion manats in April 2019, which is 14.16 percent more than in the same period last year, Trend reports referring to a report by Azerbaijan’s Financial Market Supervisory Authority (FIMSA).
According to the report, the total assets of banks (as of April 30 of the current year) increased by 7.66 percent, compared to the same period last year, reaching 29.77 billion manats.
During the reporting period, the volume of cash at the disposal of banks amounted to nearly 1.37 billion manats, correspondent accounts with the Central Bank of Azerbaijan (CBA) contained 1.52 billion manats, and funds on nostro accounts (correspondent accounts with other banks) amounted to almost 2.605 billion manats. Meanwhile, bank investments in securities reached 4.194 billion manats (an increase of almost 1.5 times compared to April last year).
Banks increased lending by 15.4 percent, and the total loan portfolio of banks amounted to 11.26 billion manats by the end of April of this year. Reserves worth 1.413 billion manats were created for these loans.
The total liabilities of the country's banking sector increased by 6.6 percent to 25.349 billion manats. Deposits had the largest share of liabilities at 74.2 percent, or 18.801 billion manats (an increase of 10.9 percent). The volume of deposits of individuals amounted to 8.63 billion manats, while that of legal entities amounted to 10.18 billion manats.
The liabilities of banks to the CBA dropped 1.8 times to 248.2 million manats.
The net profit of the banking sector (as of April 30 of the current year) amounted to 347.9 million manats. Losses of banks amounted to 57.1 million manats in April of last year. Profit was formed with interest income of 644 million manats (including interest income from loans at 457.1 million manats) and non-interest income of by 250.3 million manats. The interest expenses of banks amounted to 187.7 million manats, including the payment of interest on deposits at 125.3 million manats, and non-interest expenses at 344.3 million manats.
As a result, operating profit amounted to 288.4 million manats. During the reporting period, banks also allocated 65.3 million manats to cover potential losses on assets and paid 27.5 million manats as tax on profits. Other revenues amounted to 21.7 million manats.
There are 30 banks in Azerbaijan, including two with state participation.
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