The capitalization of the banking sector of Azerbaijan amounted to 4.599 billion manats during the first half of 2019, which is 695.7 million manats (or 17.8 percent) more than the same period last year, Trend reports referring to a report by Azerbaijan’s Financial Market Supervisory Authority (FIMSA).
According to the report, the total assets of the banks as of June 30, 2019 increased by 7.1 percent (compared to the same period last year), reaching 29.98 billion manats.
During the reporting period, the volume of cash at the disposal of banks amounted to nearly 1.404 billion manats. The correspondent accounts at the Central Bank of Azerbaijan (CBA) contained 2.165 billion manats, while the funds on nostro accounts (correspondent accounts at other banks) made up 2.731 billion manats. The banks' investments in securities reached 3.837 billion manats (an increase over 30 percent compared to June 2018).
Banks increased lending by 12.24 percent, and the total loan portfolio of banks amounted to 13.146 billion manats by the end of June 2019. Reserves worth 1.437 billion manats were created for these loans.
The total liabilities of Azerbaijan’s banking sector increased by 5.4 percent to 25.38 billion manats. Deposits made up the largest share of liabilities at 74.2 percent, or 18.831 billion manats (an increase of 9.14 percent). The volume of deposits of individuals amounted to 8.633 billion manats, and that of legal entities to 10.197 billion manats.
The liabilities of banks to the CBA decreased by more than twice, to 207.7 million manats.
The net profit of the banking sector at the end of June 2019 amounted to 433.4 million manats, which is almost 12 times higher than last year's figure. Profit was formed through interest income of 962.1 million manats (including 692.1 million manats of interest income from loans) and non-interest income of 364.5 million manats. The interest expenses of banks amounted to 281.2 million manats, including the payment of interest on deposits having made up 187.8 million manats, and non-interest expenses having made up 559.7 million manats.
As a result, operating income amounted to 414.7 million manats. During the reporting period, the banks also allocated 31.8 million manats to cover potential losses on assets and paid 34.4 million manats as profit tax. Other revenues amounted to 21.3 million manats.
The total number of the branches of 30 banks was 513, their departments – 129, and the number of ATMs – 2,571. The growth in the number of employees in the banking sector during the first 6 months of 2019 was 5 percent (873 people), and their total number comprised 18,288 people.
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