Azerbaijan’s microfinance sector ends 2018 on loss - EXCLUSIVE

As of January 1, 2019, the assets of the Azerbaijan-based Non-Banking Credit Institutions and credit unions (excluding Agrarcredit CJSC) stood at AZN 267.8 million, down 17% by contrast to a year earlier, Report informs.

Of this, AZN 187.8 million was loans issued to customers. The loan portfolio dropped by 17.7% in the reporting period.

Liabilities dropped by 22.6% to AZN 179.5 million, total capital slid 2.4% to AZN 88.3 million.

Interest incomes descended by 16.5% to AZN 49.1 million, interest expenditures declined by 42.1% to AZN 12.5 million, non-interest incomes went down 80.2% to AZN 8.2 million, non-interest expenditures slipped 29.3% to AZN 37.7 million, allocations for special reserves on compensation of possible losses on assets went up 2.3-fold to AZN 20.1 million, other incomes amounted to AZN 2.3 million, profit tax dropped by 70% to AZN 2.4 million.

Consequently, the sector ended 2018 on AZN 13.1 million in loss,  in cotrast to AZN 8.4 million in profit in 2017.