CAPITALIZATION OF AZERBAIJAN"S BANKS INCREASES DUE TO NEW INVESTMENTS BY STOCKHOLDERS; FOREIGN INVESTORS ARE MORE ACTIVE

    BAKU/23.08.10/TURAN:Bank system"s capitalization increased in the first half of 2010, and income reduced considerably.
     Authorized capital in Azerbaijan"s banks increased in the first half of the year by 146,8 million AZN, or 12,6%, and made 1291,4 million AZN. Annual increase on these indices totaled 262 million AZN, or 25%, according to Central Bank of Azerbaijan (CBA.)
     Annual income of banks prior to taxation totaled only 80, 77 million AZN, by 1, 9 times less than over January-June 2009. Total income of bank system made up 70, 52 million AZN. As a result, the share of first level capital reached 83, 5% of the joint capital.
     ` Adequacy of bank system"s capital for July 1 remained on the acceptable level of 17,2% with minimum norm 12%, and the adequacy of first level capital exceeded the norm by more than two times, and made up 14,4%,` according to the CBA"s financial stability report over first six months of the year.
     The share of foreign capital in the joint capital of bank system increased over six months by 0, 3 percentage points up to 18, 2%. Non-residents invested into capital of Azerbaijani banks 34, 4 million AZN, in addition to previously invested 204, 4 million AZN. --10D--