BAKU, Azerbaijan, August 9. Moody's Investors Service affirmed Azerbaijani Bank of Baku's B2 long-term local and foreign currency bank deposit ratings and changed the outlook on these ratings to positive from stable, Trend reports.
Moody's also confirmed the bank's b2 Baseline Credit Assessment (BCA) and Adjusted BCA, NP (Not Prime) short-term local and foreign currency bank deposit ratings, B1/NP long-term and short-term local and foreign currency CRRs, and B1(cr)/NP(cr) CR Assessments.
Previously, Moody's forecasted the net profit of Azerbaijani banks to continue at a level of 2.5 percent to 3 percent in 2023.
"Bank operational income will be supported by a mix of a greater net interest margin, strong commissions and commission income, as well as the cheap costs of establishing reserves to cover loan losses. In response to the economic recovery and high demand for loans from these segments, the margin will continue to be supported by a high share of current accounts and an increase in lending to the high-yield retail sector and small and medium-sized businesses," Moody's said, commenting on the bank's net profit forecast.
According to the Central Bank of Azerbaijan (CBA), 22 banks finished their operations with a net profit between January and June of this year.
In the reporting period, Azerbaijani banks' net profit was 563.3 million manat ($331.3 million), and their operational profit was 772.3 million manat ($454.2 million).
Meanwhile, bank net and operational earnings climbed by 41% and 26%, respectively, compared to the same period previous year.
Bank of Baku's net profit in the first half of 2023 was 17.44 million manat ($10.26 million).