The reduction in foreign exchange reserves of the Azerbaijani Central Bank (CBA) hit 0.7 percent in November 2011 and their growth reached 9.68 percent in January-November compared to the beginning of the year.
According to the CBA, as of December 1, 2011 the volume of currency reserves of the bank amounted to $7.027.6 billion compared to 7.074.3 billion manat as of November 1 and 6.407.6 billion manat as of January 1, 2011.
The CBA expected that its foreign reserves to reach $ 8 billion by the end of the year, the bank announced about raising the forecast for the year to $ 9 billion and to $12 billion for 2012.
Currency market and manat rate
In November, the official exchange rate of national currency compared to the U.S. dollar strengthened. The dollar exchange rate in the country per month decreased from 0.7869 manat per U.S. dollar to 0.7864 manat per dollar.
The maximum rate was fixed at the beginning of the month at 0.7869 manat to the dollar, and the minimum - at the end of the month (0.7864). The fluctuations between the maximum and minimum value hit about 5 points.
The rate of the euro was gradually falling in Azerbaijan in November amid the unstable situation in Eurozone. The currency reduced by 384 points (from 1.087 manat to euro to 1.0486 manat to euro) during this month. The monthly minimum rate - 1,0449 EUR / AZN was recorded on Nov. 28, monthly maximum rate - 1,0871 EUR / AZN was reached on November 4. The fluctuations between the maximum and minimum rates hit 422 points.
Joint-stock Commercial Bank "ASB" has headed five bank-leaders of exchange currency market. In accordance with it below is the list of banks - the leading operators of exchange market of hard currency in November 2011.
|
banks |
IN % FROM TOTAL VOLUME |
|
ASB |
39,98% |
|
Amrahbank |
25,74% |
|
International Bank of Azerbaijan |
12,71% |
|
Xalq Bank |
10,60% |
|
Unibank |
7,71% |
*In the data are not considered transactions of the Central Bank of Azerbaijan
In total, 9 banks have taken part in the trades of currency section of the BBVB in November 2011. In accounting month in "Bourse E-System of Trades" (BEST) 38 trading sessions are conducted and 33 transactions are registered. The total volume of trades of currency section in accounting month on USD/AZN has made 72.696 million manat or 92.474 million in dollar equivalent.
The total trading volume in currency reduced by 15.977 million manat or 18 percent compared to the indices of October in the reporting month.
The average daily turnover in "Bourse E-System of Trades" on USD/AZN reached approximately $ 4.867 million, then that the average volume of each transaction has made $ 2 .802 million.
The exchange rate of national currency on USD / AZN_TOD in the reporting month, increased by 0.05 percent - from 0.7861 to 0.7857 manat to USD. The average rate of the U.S. dollar compared to manat was 0.7861 manat to USD in November compared to 0.7864 manat as of October 2011.
Monetary market of Azerbaijan
The Central Bank of Azerbaijan (CBA) noted the increase in money supply (M2) (cash in circulation (outside banks) and remainders in the domestic currency on accounts of non-financial organizations, financial (excluding credit) organizations and physical entities) by 2.5 percent in November and 34.7 percent compared to the same period of 2011.
So, as of Dec. 1, 2011, the rate of M2 was 9.991.9 billion manat compared to 9.748.6 billion manat as of early November and 7.417.7 billion manat as of Dec.1, 2010.
The amount of cash money supply (M0) as of Dec.1, 2011 hit 6.529.4 billion manat compared to 6.505.3 billion manat as of early November and 4.994.3 billion manat as of Dec.1, 2010.
As of early November, Broad Money Supply (M3) totaled 12.830.7 billion manat compared to 12.652.2 billion manat in early November and 9.620.8 billion manat as of Dec.1, 2010.
The transaction money (M1) amounted to 8.027 billion manat as of Dec.1 compared to 7.835.8 billion manat as of early November and 5.964 billion manat as of Dec.1, 2010.
Parameters of monetary market, in bln manat
|
Amount as of Dec. 1, 2011 |
|
|
Money mass in extensive understating (М3) |
12830,7 |
|
Money mass on manat (М2) |
9991,9 |
|
Cash in manat (М0) |
6529,4 |
|
Non-cash in manat |
3462,5 |
As of Dec. 1, 2011, the monetary base in manat amounted to 7.494.4 billion manat. According to the data provided by the Central Bank of Azerbaijan, in November the monetary base increased by 3 percent. It has increased by 15 percent since early 2011 and annually - by 33.3 percent.
As of Dec. 1, the monetary base in manat totaled 7.417.4 billion manat compared to 7.189.7 billion manat as of Nov. 1, 6.397.1 billion manat as of Jan. 1, 2011 and 5.605.5 billion manat as of Dec. 1, 2010.
During the reported period, money in circulation amounted to 6.937.2 billion manat, while as of Nov. 1, this figure was 6.849.3 billion manat, Jan. 1, 2011 - 5.793.2 billion manat, and on Dec. 1, 2010 - 5.292.6 billion manat.
In turn, bank reserves were equal to 542.9 million manat (409.6 million manat, 725.5 million manat and 328.8 million manat, respectively).
The ratio of the mass of cash in circulation to the money base amounted to 92.6 percent during the reporting period compared to 94.2 percent as of Novt. 1, 88.8 percent as of the beginning of 2011 and 94.1 percent as of Dec. 1, 2010.
It should be noted that in 2010 the monetary base increased by 32.8 per cent in Azerbaijan.
Credit market of Azerbaijan
Azerbaijani banks increased lending to the Azerbaijani economy by 0.78 percent in November and by 8.4 percent compared to November 2010.
As of early Dec., the banks provided loans totaling 9.852.8 billion manat (including 6.271.6 billion manat in national currency (63.7 percent) in national currency and 3.581.1 billion manat in hard currency) 36.3 percent.
Of the total portfolio, loans worth 636.7 million manat (6.5 percent) were overdue compared to 626.5 million manat as of Nov.1, about 458.1 million manat as of Dec.1, 2010. Statistics of overdue loans does not include similar loans of non-bank credit institution Aqrarkredit.
Short-term loans as of early December amounted to 3.093.9 billion manat (including overdue loans worth 326.4 million manat) compared to 3.103.4 billion manat (including overdue loans worth 317.5 million manat) as of Nov. 1, about 2.546 billion manat (209 million) as of Dec.1, 2010.
In November, the amount of short-term loans grew by 0.3 percent, but compared to December 2010 by 21.52 percent. As of the end of November, 36.5 percent of short-term lending accounted for hard currency
Long-term loans amounted to 6.758.9 billion manat (including 310.3 million manat overdue loans) compared to 6.672.7 billion manat (309 million overdue loans) as of Nov. 1, 6.545.8 billion manat (249.1 million manat) as of Dec. 1, 2010 . In November, the amount of long-term loans grew by 1.3 percent, but compared to November 2010 by 3.25 percent. As of the end of November, 34.67 percent of long-term lending accounted for hard currency.
As of early November, the only state bank of the country (the International Bank of Azerbaijan) granted loans totaling 3.272.3 billion manat with a specific weight of 33.2 percent (decreased by 0.04 percent in November), and private banks - 6.329 billion manat with a specific weight of 64.2 percent (increasing by 1.2 percent in November). The remaining 2.6 percent fall on the share of non-bank credit organizations, which received loans worth 251.5 million manat.
As of Dec. 1, 2010, total lending in the country amounted to 9.852.8 million manat, where loans in local currency were at the level of 6.271.6 million manat.
Most of all loans are granted to households in Azerbaijan. According to the CBA, on December 1, 2011 households received 33 percent or loans worth 3.250.9 million manat.
The sphere of trade and services (29.3 percent or 2.882.2 billion manat) ranks second, the construction sector of real estate (7.9 percent or 783 million manat) ranks third.
About 6.0 percent or 591.4 million manat accounted for industry, agriculture and processing - 4.9 percent(485.3 million manat), 3.9 percent or 381.4 million manat - transport and communications, energy natural resources - 3.2 percent (311.7 million manat), rest areas - 0.5 percent or 45.4 million manat of loans.
As of Dec.1, the average rate on bank lending to the Azerbaijani economy in national currency amounted to 16.24 percent compared to 16.21 percent as of Nov. 1, 16.37 percent as of Jan. 1, 2011 and 13.66 percent - on Dec. 1, 2010.
The average rate on bank lending in foreign currency was 16.34 percent, on Nov. 1 - 16.27 percent, on Jan. 1, 2011 - 17.31 percent, on Dec. 1, 2010 - 16.43 percent.
The average rate on bank lending to legal entity in national currency amounted to 14.48 percent compared to 14.37 percent as of Nov. 1, 2011 and 14.4 percent as of Jan. 1, 2011 and 11.25 percent as of Dec. 1, 2011. The average rate on bank loans in foreign currency was 13.72 percent, 13.66 percent, 14.2 percent and 13.28 percent respectively.
As of Dec. 1, the average rate on bank lending to individuals in national currency amounted to 19.19 percent. The figure hit 19.18 percent the previous month, on Jan. 1, 2011 - 19.84 percent, on Dec. 1, 2010 - 19.28 percent.
The average rate on bank credit for a physical entity in foreign currency amounted to 22.98 percent, 23.02 percent, 23.73 percent and 22.84 percent respectively.
Banking sector of Azerbaijan
As of Dec. 1, 2011, the total amount of deposits of physical and legal entities in Azerbaijani banks amounted to 6.289.8 billion manat.
Including deposits of non-residents and state agencies, the figure was 8.892.8 billion manat, which is more by 2.1 percent compared to Nov.1.
In general, the deposit base of Azerbaijani banks increased by 16.6 percent for the first eleven months, and by 28.6 percent during the year.
As of Nov. 1, 2011 the deposit base of Azerbaijani banks hit 8.707.8 billion manat, as of Jan. 1, 2011 - 7.625.8 billion manat, as of Dec. 1, 2010 - 6.915.9 billion manat.
As of Dec.1, 2011, the volume of physical entities' deposits in banks in Azerbaijan amounted to 3.830.1 billion manat, which is 33.5 percent more compared to the same period of 2010 (2.868.4 billion manat).
Some 1.970.1 billion manat (51.4 percent) of the population were placed in the national currency - manat, 1.859.9 billion manat - in foreign currency.
The volume of physical entities' deposits in banks in Azerbaijan amounted to 3.660.7 billion manat, of which 1.837.7 billion manat (50.2 percent) were placed in the national currency - manat, 1.823 billion manat - in foreign currency.
About 76 percent of the cash deposits are in accounts of private banks.
As of Dec. 1, 2011, people's deposits to banks drawn from Azerbaijan's regions (areas except for Baku) were 319.2 million manat, an equivalent to 8.3 percent of the combined deposits to banks.
As of December 1, the total volume of deposits totaled 3,830.1 million manat, including 1,970.2 million manat as deposits in national currency.
In Baku, the figure was equivalent to 3,510.9 million manat, including 1,734.3 million manat as deposits in national currency. In the reported period, interest rate of deposits averaged 9.1 percent, including 9.3 percent in Baku.
In the period, deposits were equivalent to 104.3 million manat (average interest rate of 9.7 percent) in the Absheron economic region, 48.9 million manat (5.2 percent), in the Aran region 50.2 million manat (5.3 percent), in the Mountain Shirvan region, 7.03 million manat (7.5 percent), in the Ganja-Gazakh region 57.3 million manat (8 percent), in the Guba-Khachmaz region 25.3 million manat (7.1 percent), in the Lenkoran region 24.7 million manat (7.1 percent), in the Sheki-Zagatala region 20.2 million manat (6.2 percent), in the Upper Karabakh region 8.2 million manat (3.6 percent), in the Kalbajar-Lachin region 1.5 million manat (5.9 percent), the Nakhchivan region - 20.5 million manat (3.3 percent).
As of November, the amount of legal entities' deposits totaled 2.459.7 billion manat, of which 685.1 million manat invested in the national currency, 1.774.6 million manat - in foreign currency.
As of Nov.1, the amount of legal entities' deposits in banks totaled 2.563.4 billion manat compared to 2.177 billion manat as of early 2011, 2.164.9 billion manat as of November 2010.
The average rate on deposits in manat as of Dec. 1 was 10.65 percent compared to 10.64 percent as of Nov. 1, 2011, 11.11 percent as of Jan. 1, 2011.
The average rate on deposits in foreign currency amounted to 11.27 percent compared to 11.20 percent and 11.64 percent respectively.
As of Dec. 1, the average rate on deposits of individuals in manat was 11.10 percent compared to 11.22 percent as of the beginning of November and 11.79 percent as of the beginning of 2011. The average rate on individuals' deposits in foreign currency amounted to 11.39 percent compared to 11.33 percent and 12.27 percent respectively.
As of the beginning of December, the average rate on deposits in manat for legal entities was 6.15 percent compared to 6.05 percent as of Nov. 1, 2011 and 6.19 percent as of Jan. 1, 2011. The average rate on corporate clients in foreign currency was 8.02 percent and 6.27 percent respectively.
The capitalization of the banking sector in Azerbaijan increased by 0.2 percent in November 2011 and by 8.4 percent compared to early 2011, amounting to 2.352.2 billion manat as of Dec.1.
According to statistic data of the CBA, the number of banks with capital exceeding 10 million manat, hit 41 in November, remaining unchanged compared to October and decreasing by 1 compared early 2011. The share of this category of banks in the total amount of capital of all banks in the country in November hit 99 percent compared to 99 percent in October and 98.9 percent as of early 2011.
At present, three banks do not meet the CBA requirements in terms of capitalization [minimum capital should be 10 million manat]. The two banks (with a specific weight of 0.8 percent) formed the capital in the range from 5 million manat to 10 million manat, one (0.2 percent) - from 3.5 million manat to 5 million manat.
Some 32 profitable banks operated in Azerbaijan in November 2011. The number increased by one bank compared to October and increased by 1 compared to the same period of 2010.
In November, total profits in the banking sector hit 145.43 million manat, or 5.9 percent more compared to the relevant figure in October and by 9.6 percent less than the same period of 2010.
The number of unprofitable banks decreased by one bank in October and by 4 in annual calculation. As a result, the loss of 12 banks amounted to 34.62 million manat, or 13.7 percent less compared to October and 33.2 percent less compared to November 2010.
Bank Financial Results (After Tax) in million manat:
|
Periods |
Number of banks operating profitably |
Total profit of the banking system (on profitable banks) |
Number of banks operating in loss |
Total loss of the banking system (on unprofitable banks) |
Total profit (+) or loss (-) obtained by banks |
|
01-12-2010 |
31 |
160,9 |
16 |
51,85 |
109,05 |
|
01-12-2011 |
32 |
145,43 |
12 |
34,62 |
110,82 |
Payment card market
On December 1, 2011, there were 4.535 million units of payment cards in Azerbaijan, which indicates the growth in their number in circulation in November by 1.4 percent and by 7.7 percent compared to the same period of 2010.
Total turnover for payment cards through ATMs and POS-terminals totaled 609 million manat, and the total number of operations - 4.071 million units.
As of December 1, 2011, about 2104 ATMs operate in the country, including 1,166 ATMs located Baku, 938 - in other cities and regions. Their total number increased by 225 units, or 12 percent for 11 months.
As of December 1, 2011, the number of POS-terminals totaled 12,778 units, of which 11,735 are located in Baku, 1,043 units in other cities and districts. Their number has increased by 4,866 units (by 61.5 percent) since early 2011.
Stock market
The total turnover of transactions on all instruments at Baku Stock Exchange (BSE) for January-November 2011 totaled 6.6 billion manat, increasing by 3.88 times compared to the same period of last year.
The corporate securities market increased by 65.99 percent compared to the same period of last year. The figure hit 644.2 million manat compared to the same period of last year This is stipulated by the increased volume of transactions in corporate bonds by 2.3 times, although the number of transactions with them declined by 7.6 percent - up to 182.
The state securities market increased by 4.5 times. The figure hit 5.9 billion manat.
Comparative table on the results of trades of Corporate Securities at BSE (January- November 2011)
|
Market segments |
2011 (30.11.11) |
2010 (30.11.10) |
Percentage ratio |
||
|
Volume of transactions, AZN |
Number of deals |
Volume of transactions, AZN |
Number of deals |
||
|
Corporate bonds- (placement) |
141 713 489,45 |
85 |
83 818 004,39 |
97 |
169,07% |
|
Corporate bonds - (secondary market) |
405 134 826,41 |
97 |
150935188,57 |
100 |
268,42% |
|
CBs Total |
546 848 315,86 |
182 |
234753192,96 |
197 |
232,95% |
|
Stocks - (placement) |
89 163 399,10 |
130 |
146701490,96 |
1 808 |
60,78% |
|
Stocks - (secondary market) |
8 205 677,12 |
3 189 |
6 645 862,19 |
1 859 |
123,47% |
|
Stocks Total |
97 369 076,22 |
3 319 |
153347353,15 |
3 667 |
63,50% |
|
CS Market Total |
644 217 392,08 |
3 501 |
388100546,11 |
3 864 |
165,99% |
Comparative table on the results of trades of Government Securities at BSE (January- November 2011)
|
Market segments |
Nov.30, 2011 |
Nov.30, 2010 |
Percentage ratio |
||
|
Volume of transactions, AZN |
Number of deals |
Volume of transactions, AZN |
Number of deals |
||
|
GB - (AR MF) (placement) |
232 073 000,38 |
128 |
307 036 851,04 |
123 |
75,58% |
|
GB - (AR MF) (secondary market) |
41 570 251,84 |
41 |
89 941 551,73 |
48 |
46,22% |
|
GB Total |
273 643 252,22 |
169 |
396 978 402,77 |
171 |
68,93% |
|
Notes (AR CB) - (placement) |
592 397 417,19 |
257 |
189 418 737,38 |
146 |
312,74% |
|
Notes (AR CB) - (secondary market) |
9 555 687,77 |
5 |
5 564 936,87 |
2 |
171,71% |
|
Notes Total |
601 953 104,96 |
262 |
194 983 674,25 |
148 |
308,72% |
|
Repo operations |
5035 961 626,19 |
1 172 |
709 908 031,43 |
674 |
709,38% |
|
GS Market Total |
5911557983,37 |
1 603 |
1301870 108,45 |
993 |
454,08% |
Abbreviations
GB - government bonds
GS - government securities
CB- corporate bonds
CS- corporate securities
The National Depository Center (NDC) at the Azerbaijani State Securities Committee registered 230 stock transactions for the sale of shares in the amount of 50.1 million manat at the contract price and in the amount of 48.9 million manat - at par value in November.
The Depository Center registered 175 non-stock exchange transactions in the amount of 1.53 million manat at a nominal price and 19 transactions on the additional issue in the amount of 13.5 million manat at a nominal price. The volume of registered non-stock exchange transactions exceeded the stock ones by 32 times and the number of non-stock exchange transactions exceeded the stock ones by 8 times in November.
Securities in the amount of 5.43 billion manat are deposited in the NDC.