Baku, September 29, 2025
The volume of overdue loans in Azerbaijan’s banking sector stood at 530.9 million manats ($312 million) as of September 1, 2025, up 0.3% from a month earlier, according to data from the Central Bank of Azerbaijan (CBA).
Problem loans have risen 18.2% since the end of 2024 and 12.2% year-on-year. Their share in the total loan portfolio remains at 1.7%, unchanged from both July 2025 and September 2024, but slightly higher than the 1.5% recorded at the end of last year.
Assets and Lending
CBA figures show total banking sector assets reached 55.67 billion manats ($32.7 billion), an annual increase of 12.3%. Net loans issued to customers amounted to 26.98 billion manats, up 9.9% over the year. However, loans accounted for a slightly smaller share of total assets, falling from 49.5% to 48.5%.
Banking sector liabilities also climbed 12.3% to 48.6 billion manats, while the deposit portfolio expanded by 4.3% to 36.5 billion manats. Of this, deposits from individuals stood at 15.1 billion manats (+8.6% year-on-year), and deposits from legal entities at 21.4 billion manats (+1.5%).
Notably, banks’ liabilities to the CBA plummeted by 89.6 times, totaling just 0.5 million manats.
Profitability
The sector’s consolidated net profit for January–August 2025 amounted to 774.3 million manats ($454 million), a 0.3% increase from the same period last year.
Operating income reached 4.45 billion manats (+19%), while operating expenses rose faster, at 3.22 billion manats (+25.95%). Provisions for loan losses totaled 271 million manats (+13.25%), and profit tax payments came to 187.9 million manats (+7.3%).
