Profits of Turkish banks in Azerbaijan decrease

Finance Materials 31 January 2019 09:28 (UTC +04:00)

Baku, Azerbaijan, Jan. 31

By Azad Hasanli – Trend:

Turkish banks operating in Azerbaijan have significantly reduced profits in 2018, Trend reports citing the financial statements of banks.

The daughter branches of two Turkish banks, YapıKredi Azerbaijan and Ziraat Bank Azerbaijan, are currently operating in the country, with their parent banks being among the largest in Turkey.

Ziraat Bank Azerbaijan's net profit fell the most - almost threefold, down to 1.37 million manats; whereas the net profit of YapiKredi Azerbaijan amounted to 5.4 million manats - an almost half reduction.

Revenues and expenses in 2018 (in thousand manats):




Operating profit

Deductions for making provisions for losses

Net profit

YapiKredi Bank Azerbaijan

51 952

34 561

17 390

10 048

5 388

Ziraat Bank Azerbaijan

19 138,09

12 044,86


5 405,1

1 374,67

YapiKredi Azerbaijan

As of last year, the assets of YapiKredi Azerbaijan amounted to 426.68 million manats, falling by 0.14 percent over the year. However, the bank's loan portfolio simultaneously increased from 146 million to 174 million manats. One third of its portfolio falls on overdue loans, at 53.45 million manats. Their share for the year fell from 33.2 to 30.7 percent.

The bank keeps most of its assets as deposits in financial institutions - 135 million (a 2.6-fold increase over the year). At the same time, the bank reduced the amount of funds stored in correspondent accounts in other banks (nostro accounts) by eight times, down to 18.8 million manats.

By the end of the year, the bank’s liabilities also fell from 354.67 million to 347.9 million manats. The bank’s deposit portfolio decreased from 329.82 million to 320.76 million, which was caused by a reduction in deposits of legal entities from 203.9 million to 184.86 million manats. Individual deposits increased from 82.78 million to 85.8 million manats.

The share capital of YapiKredi Azerbaijan amounted to 69.6 million manats, the aggregate to 70.3 million manats.

Ziraat Bank Azerbaijan

The bank's annual assets increased by 22 percent, reaching 227.9 million manats, and the loan portfolio by 55 percent, up to 105.5 million manats.

Unlike YapiKredi Bank Azerbaijan, Ziraat Bank Azerbaijan increased the storage amount on nostro accounts by almost four times, to 46.96 million manats, but reduced the amount on deposits in financial institutions by 60 percent, down to 22.1 million manats.

The liabilities of the bank during the reporting period made up 160.5 million manats, increasing by 32.9 percent. The deposit portfolio remained almost unchanged over the year, standing at 80.45 million manats in 2018 compared to 80.13 million manats in 2017. However, the structure of the deposit portfolio has changed significantly.

The bank's share capital is 50 million manats, the aggregate is 64.19 million manats.

($1=1.7 AZN on Jan. 30)