Volume of problem loans increases in major Azerbaijani bank
Baku, Azerbaijan, July 16
By Kheyraddin Nasirzade - Trend:
The volume of problem loans of Azerbaijan’s Kapital Bank increased by 6.1 percent in the second quarter of 2019 compared to the first quarter, Trend reports referring to the financial report of the bank.
The bank’s volume of overdue loans in the second quarter this year amounted to 47.079 million manats, which makes about 3 percent of the loan portfolio.
The biggest share of problem loans in the distribution of Azerbaijani regions is held by three cities: Baku - 36.732 million manats, Nakhchivan - 3.723 million manats, and Ganja - 1.226 million manats.
The loan portfolio for the reporting period, upon deduction of target reserves, amounted to 1.406 billion manats, which is by 26.2 percent more than last year.
In the structure of large loans of the portfolio, the volume of credit cards is 213.439 million manats, which in turn makes over 15 percent of the total volume.
Loans worth 130.184 million manats were allocated to the road transport sector. In the field of information and communications, the volume of issued loans amounted to 57.8 million manats. The bank issued loans worth 66.721 million manats for the construction of roads and bridges. In addition, loans worth 49.44 million manats were issued for the purchase of housing. In the area of processing, the volume of loans amounted to 16.503 million manats.
In accordance with the report, the bank’s total capital at the end of June this year after tax deduction amounted to 329.092 million manats, which is by almost 81.797 million manats more than last year’s figure.
The bank’s total assets for the first half of this year increased by 2.5 percent, amounting to 3.663 billion manats. The total liabilities of the bank during the reporting period decreased by 7.7 percent, reaching 3.299 billion manats.
(1 USD = 1.7 AZN on July 16)
Follow the author on Twitter: @1nasirzade