Azerbaijani banks see rise in assets, profits grow
By Gulgiz Dadashova
The Central Bank of Azerbaijan (CBA) has reported an increase in the total assets of Azerbaijani banks in the first quarter of 2013.
According to a CBA report, the total assets of local banks amounted to 18.494 billion manats as of April 1, 2013, increasing by 25.93 percent compared to the same period of 2012.
Most of the assets of the banking sector (61.1 percent) account for the loans worth 11.304 billion manats (23.97 percent increase) issued to customers, investments (over 1.564 billion manats, an increase by 21.89 percent) and funds held in correspondent accounts (over 1.371 billion manats, a decrease by 16.4 percent). Loans and deposits issued for the financial sector amounted to 753.2 million manats (growth of 30.26 percent).
In Q1 2013, the total liabilities of the Azerbaijani banking sector increased by 26.4 percent and exceeded 15.826 billion manats. The figure was 12.522 billion manats in the same period of 2012.
Furthermore, the CBA said growth was recorded in the capital of the Azerbaijani banks, though there are still banks in the market that do not meet the minimum regulatory capital requirements (10 million manats).
During the mentioned period, the capitalization of the Azerbaijani banking sector increased by 23.3 percent to hit more than 2.667 billion manats as of April 1 compared to the first quarter of 2012.
According to the CBA, the number of banks with the capital exceeding 10 million manats reached 41 in Q1 2013. Their number was 42 in the first quarter of last year.
The share of these banks in the total capital of all banks operating in the country was 99.7 percent at the end of the reporting period.
Meanwhile, the share of the banks with capital worth 3.5 million manats to 5 million manats in the total capital of all banks made up 0.3 percent.
The total profit of profitable banks exceeded the total loss of unprofitable banks by more than 10-fold in Q1.
The profit of 39 banks amounted to 78.08 million manats and the loss of the other four banks - 6.92 million manats. This allowed the banking system to earn over 71 million in net profit.
The number of profitable banks increased by three and the total profit of the sector increased by 58.3 percent compared to Q1 2012.
The number of unprofitable banks went down by four and the total loss was halved.
43 banks operate in Azerbaijan.