Azerbaijani banks made AZN 123 mln net profit in Q1 2017

Baku. 5 May. REPORT.AZ/ The aggregate assets of commercial banks of Azerbaijan as of April 1, 2017 amounted to AZN 29 980.1 mln, which is 4.6% less than at beginning of the year.

Report informs with reference to the Financial Market Supervision Authority (FIMSA).

Loans to customers amounted to AZN 15,053.1 mln or 50.2% of banking assets. The loan portfolio of banks decreased by 5.5% in the first quarter of 2017.

During this period, total liabilities of banks decreased by 7.8% to AZN 27 219.9 mln, deposit portfolio - by 3.4%, amounting to AZN 15,844.7 mln, including AZN 6 889.2 mln of individual deposits, AZN 8955.5 mln of deposits of legal entities. From the beginning of the year, deposits of population fell by 7.3%, those of companies – by 0.25%.

In January-March, banks' obligations to the Central Bank of Azerbaijan decreased by 49.4% to AZN 857.4 mln.

During reporting period, the balance capital of credit institutions increased by 44.6% and reached AZN 2 760.2 mln.

In the first quarter, interest income of banks amounted to AZN 512.9 mln, interest expenses - AZN 253.7 mln, non-interest income - AZN 272 mln, non-interest expenses - AZN 221 mln. In the end, the net operating profit of the banking sector amounted to AZN 310.2 mln.

The banks allocated AZN 180.7 mln for creation of special reserves to cover losses on assets; the sector's revenues from other sources made AZN 2.7 mln, profit tax - AZN 8.7 mln.

Thus, Azerbaijani banking sector ended the first 3 months with a net profit of AZN 123.4 mln.