Capitalization of Azerbaijan's banking sector increases by over 11%
By Trend
Capitalization of Azerbaijan’s banking sector amounted to 4.31 billion manats in March 2019, which is 11.46 percent more compared to the same period of 2018, Trend reports referring to the Financial Market Supervisory Authority of Azerbaijan (FIMSA).
The total assets of banks at the end of March 2019 compared to March 2018 increased by 6.94 percent and reached 29.85 billion manats.
In late March, 2019, the volume of cash at the disposal of banks amounted to almost 1.34 billion manats, correspondent accounts with the Central Bank had 1.598 billion manats, and funds on nostro accounts (correspondent accounts with other banks) amounted to almost 2.562 billion manats. The banks' investments in securities reached 4.318 billion manats (an increase of almost 1.9 times compared to March 2018).
Banks increased lending by 17.04 percent, and in March 2019, the aggregate loan portfolio of banks amounted to 11.23 billion manats. Reserves worth 1.483 billion manats were created for these loans.
The total liabilities of the country's banking sector increased by 6.2 percent to 25.533 billion manats. The largest share of liabilities fell to deposits - by 72.7 percent, or 18.572 billion manats (an increase of 11.1 percent). The volume of deposits of individuals amounted to 7.58 billion manats, legal entities - 9.14 billion manats.
The liabilities of banks to the Central Bank decreased by 33.6 percent to 331.1 million manats.
The net profit of the banking sector at the end of March 2019 amounted to 123.9 million manats, while in March 2018, losses of banks amounted to 55.9 million manats. Profit was formed from interest incomes at 483.2 million manats (including 342.9 million manats of interest income from loans) and non-interest - 145.2 million manats. The interest expenses of banks amounted to 140.7 million manats, including the payment of interest on deposits - 93.1 million manats, non-interest expenses - 248.9 million manats.
As a result, operating profit amounted to 179.1 million manats. During the reported period, the banks also allocated 63.1 million manats to cover potential losses on assets and paid 15.5 million manats as a tax on profits.
There are 30 banks in Azerbaijan, including 2 state-owned ones.
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