Azerbaijani Banks" Profits Fell by Half, Despite Increase in Revenues

The total revenue of banks operating in Azerbaijan in January-July this year amounted to 885 million manat, which is 88.6 million or 11.1% more than in the same period of the previous year. Non-interest income increased 14.7% to 196.93 million manat.

Bank expenses for the period increased 80 million or 12.9% to 699.9 million manat. Accruals on assets increased compared with January-July last year by 65.31 million or 67.3% to 127.51 million manat (with an annual growth of 12.8% of assets).

Turan was told at the Central Bank of Azerbaijan that in the structure of banking income for the reported period the main part fell on interest income - 77.8%, and in the costs prevailing was the share of interest payments (52.5%).

Annual profit before tax amounted to 58.56 million manat, which is 41.6% less than in January-July 2011. The total profit of the banking system declined for the year by 49.4% to 48.19 million manat.

Within seven months of this year there were 33 profitable banks, whose total net income amounted to 145.28 million manat. The loss of 10 loss-making banks totaled 97.1 million manat. Compared to the same period in 2011 the number of profitable banks remained unchanged. The number of unprofitable banks decreased by one, and the total amount of their losses increased 8.4 times. - 15B -