Capitalization Azerbaijan's banking sector increases by almost 15%

By  Trend

The capitalization of the banking sector of Azerbaijan in November 2018 amounted to 4.247 billion manats, which is 14.51 percent more than the figure at the beginning of the year, Trend reports referring to the Financial Market Supervision Authority (FIMSA).

As the FIMSA report said, the total assets of banks since the beginning of the year increased by 6.83 percent, reaching 29.827 billion manats. In the reported period, the volume of cash at the disposal of banks amounted to almost 1.159 billion manats, the correspondent accounts at the Central Bank contained 1.907 billion manats and the funds on the nostro accounts (correspondent accounts with other banks) - almost 2.676 billion manats.

Bank investments in securities reached 3.87 billion manats (a 54.92 percent increase since the beginning of the year).

Since early 2018, banks increased lending by 7.37 percent and by the end of November, the total loan portfolio of banks amounted to 12.172 billion manats. Provisions for these loans were created for 1.516 billion manats.

The total liabilities of the country's banking sector increased by 5.65 percent to 25.579 billion manats. The largest share of liabilities fell on deposits - 72.6 percent, or 18.571 billion manats (9.92 percent growth since early 2018). The volume of deposits of individuals amounted to 7.99 billion manats, legal entities - 10.581 billion manats.

The liabilities of banks to the Central Bank decreased from 507.6 million to 403.1 million manats.

The net profit of the banking sector over the first eleven months amounted to 306.3 million manats. Profit was formed at the expense of interest income at 1.597 billion (including 1.115 billion manats - income from interest on loans) and non-interest at 500.1 million manats. The interest expenses of banks amounted to 536 million manats, including the payment of interest on deposits - 349.6 million manats, non-interest - 916.7 million manats.

As a result, operating income of 644 million manats was formed. During the reporting period, the banks also allocated 303.4 million manats to cover potential losses on assets and paid 32.1 million manats as a profit tax.

As many as 30 banks operate in Azerbaijan, including two with state participation.