Azernews.Az

Total income of Azerbaijani banks in the first half of 2012 increased 12.9 percent compared to the same period of last year, amounting to 756.7 million manats (almost $964 million), the Central Bank of Azerbaijan said.

Total interest income of Azerbaijani banks increased by 12.2 percent to 593.7 million manats ($756.3 million) as of July 1.

Non-interest income (income from transactions in foreign currency and commission fees from other services) increased by 15.5 percent to 163 million mantas (over $207.6 million) at the end of the reporting period.

In the first six months interest on loans granted by banks to customers rose by 12.4 percent to 546.9 million manats ($696.6 million). Interest income to average assets ratio was 7.6 percent, or 0.1 percent down from the same period of last year.

Interest income from other transactions, such as investments, financial leasing and inter-bank liabilities in January-June increased 10.4 percent compared to the same period of last year, and compared to average assets remained stable at 0.6 percent.

In the six-month period, total expenses of banks grew by 14.7 percent (or 77.9 million manats) compared to the same period of last year to 606.4 million mantas (over $772.4 million).

Due to the increasing volume of term deposits in Azerbaijan spending on interest in the first half-year increased 12.6 percent compared to the same period in 2011, amounting to 312.5 million manats ($398 million). The interest expense to average assets ratio was 4.4 percent, which is 0.1 percentage point lower than in the same period of last year.

Non-interest expenses of Azerbaijani banks increased by 17.2 percent to 284.9 million manats ($362.9 million), the CBA said.

The non-interest expenses to average assets ratio remained almost unchanged (+0.1 percentage points), amounting to 3.9 per cent.

Operating profit in January-June amounted to 150.3 million manats ($191.4 million). Return on assets (ROA) was 0.1 percent, while return on equity (ROE) - 1.2 percent.

In the first half-year profit of the banking system amounted to 19.1 million manats ($24.3 million), and net profit made up 10.3 million manats ($13.1 million). The number of banks that have completed the first half-year with a profit was 35 compared to 33 in the same period of last year, while nine banks (compared to 11 as of July 1, 2011) completed the first half with a loss.