Loss of Unprofitable Banks Increased in the First Half of the Year by 9.4 Times

The total revenue banks operating in Azerbaijan in January-June this year amounted to 756.69 million manat, 86.47 million or 12.9% more than in the same period of the previous year. Non-interest income increased 15.5% to 163 million manat.

Bank expenses for the period increased 77.85 million or 14.7% to 606.41 million manat. Accruals on assets increased compared to January-June last year 65.31 million or 2 times, reaching 132.01 million manat (with an annual growth of 12.5% in the assets).

The Central Bank of Azerbaijan told Turan that in the structure of banking income for the reported period the main part fell on interest income - 78.5%, and in the costs - the share of interest payments (53%).

Annual profit before tax amounted to 19.11 million manat, which is 4 times less than in January-June 2011. The total profit of the banking system declined during the year by 6.8 times, reaching 10.25 million manat.

In the first half of this year, 35 banks operated profitably, and their total net income amounted to 109.1 million manat. Losses of 9 unprofitable banks amounted to 98.8 million manat. Compared to the same period in 2011 the number of profitable banks grew by two. The number of unprofitable banks decreased by the same amount and the total amount of their losses increased 9.4 times. - 15V -