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Azerbaijani bank sees reduction in problem loans by 13.5%

Business Materials 10 July 2019 10:37 (UTC +04:00)

Baku, Azerbaijan, July 10

By Kheyraddin Nasirzade - Trend:

In the second quarter of 2019, Azerbaijan’s NBC Bank reduced the volume of problem loans by 13.5 percent compared to the end of last year, reaching 9.654 million manats, Trend reports with reference to the bank's financial report.

The share of individuals in the structure of problem loans decreased by 15 percent to 5.884 million manats over six months. Overdue loans issued in the trade and services sector decreased by 11.7 percent, amounting to 3.127 million manats.

Toxic loans issued in industry, agriculture and other areas decreased by 7.3 percent, reaching 636,000 manats.

The main share of problem loans accounted for funds issued in Baku, which during the reporting period decreased by 12.8 percent to 8.2 million manats.

The loan portfolio after deducting the target reserves in the first six months of this year increased by 4.5 percent, amounting to 213.645 million manats. The volume of loans to individuals increased by 12.7 percent, which makes 58.2 percent of the portfolio.

The trade and services sector decreased by 1.7 percent, reaching 64.141 million manats. Loans issued to other banks and other financial institutions increased by 3 percent, to 16.441 million manats.

Lending in industry, agriculture and other spheres significantly decreased by 32 percent to 11.576 million manats. Loans issued to public organizations decreased by 5 million manats to 34 million manats during the six months of this year.

(1.7 manats = 1 USD on July 10)

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