Consumer loans account for most part of Azerbaijani Kapital Bank's loan portfolio

Finance Materials 25 January 2020 11:50 (UTC +04:00)
Consumer loans account for most part of Azerbaijani Kapital Bank's loan portfolio

BAKU, Azerbaijan, Jan. 25

By Eldar Janashvili - Trend:

Total assets of Azerbaijan’s Kapital Bank increased by 11.5 percent in 2019, Trend reports referring to the bank’s balance sheet.

The bank’s total assets increased by 426 million manat (250.5 million), reaching 4.1 billion manat ($2.4 billion).

The biggest part in the structure of assets, about 44.2 percent, is held by loans issued to customers and financial institutions, the volume of which increased by 21.8 percent, reaching 1.8 billion manat ($1 billion). At the same time, almost 75 percent of the total loan portfolio accounted for consumer loans, the aggregate size of which increased by 35.1 percent.

Business loans accounted for 433.9 million manat ($255.2 million), the share of which decreased by 7 percent, and the volume - by 8 percent. Real estate loans amounted to 52.5 million manat ($30.8 million, or an increase of 26.6 percent), or less than 3 percent of the total loan portfolio.

As much as 8.6 million manat ($5 million) was issued to banks and financial institutions, which is almost 11 times more than in 2018. The interest on loans amounted to 1.5 billion manat ($882.3 million), which is 16.3 percent more than in 2018.

The deduction of target reserves from the portfolio to ensure possible losses from loans amounted to slightly less than 320 million manat ($188.2 million) in 2019, increasing 1.5 times compared to 2018.

The amount of cash in the bank decreased by 7.4 percent, amounting to 1.2 billion manat ($732.3 million). Investments in securities amounted to about 455 million manat ($267.6 million), which is 40 percent more than in 2018.

Deposits in banks and other financial institutions grew by 23.2 percent, to 650 million manat ($382.3 million).

In the structure of long-term assets, real estate and equipment rose by 14.7 percent, to 54.6 million manat ($32.1 million). Intangible assets increased by 18.9 percent, amounting to 22.8 million manat ($13.4 million). Other assets amounted to slightly over 200 million manat ($117.6 million).

($1= 1.7 manat on Jan. 25)