Interest expenses of Azerbaijani banking sector down

Finance Materials 26 June 2020 16:11 (UTC +04:00)
Interest expenses of Azerbaijani banking sector down

BAKU, Azerbaijan, June 26

By Eldar Janashvili - Trend:

The total profit in the Azerbaijani banking sector amounted to 314.5 million manat ($185 million) from January through May 2020, while the country's banks completed 2019 with profit worth 522.7 million manat ($307.5 million), Trend reports on June 26 referring to the financial report of the Central Bank of Azerbaijan (CBA).

The banks have lost 208.2 million manat ($122.5 million) since the beginning of the year.

In accordance with the CBA’s report, net interest income amounted to 573.5 million manat that’s $337.3 million (a 1.7-fold decrease). It was formed through the interest income worth 799.2 million manat that’s $470.1 million (a 2.4-fold decrease for the year), of which 633.6 million manat ($372.7 million) accounted for the interest on loans, the volume of which is 788 million manat ($463 million) less than in 2019 and through the interest expenses worth 201.2 million manat that’s $118.3 million (a decrease by twofold or by 204 million manat that’s $120 million).

At the same time, interest expenses on deposits amounted to 130 million manat ($76.5 million), which is by 146.2 million manat ($86 million) less than in 2019.

Non-interest income of the banking sector amounted to 263.1 million manat ($154.8 million), decreasing almost twofold since the beginning of the year.

Non-interest expenses in late March 2020 amounted to 476.4 million manat or $280.2 million (a decrease of 361.1 million manat or $212.4 million).

The operating profit amounted to 360.2 million manat ($211.9 million), of which 20 million manat ($11.8 million) was spent on reserves. Accordingly, the profit after payment of tax and unforeseen expenses related to the banking activity in the amount of 65.7 million manat ($38.6 million) reached 314.5 million manat ($185 million).

(1 USD = 1.7 AZN on June 26)


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