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Azerbaijanâ€™s banking system decreases profit by 2.2 times

27 August 2010 14:50 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. Azerbaijan-based commercial banksâ€™ pretax profit made AZN 81.19 mln in January-July, 2010, up AZN 100.93 mln compared with a year ago.

CBA says the total profit with the special reserves on assets made AZN 197.09 mln, down AZN 67.09 mln or 27.3% compared with a year ago.

The casue of this is the loss in non-interest operations. So, the non-interest rate was AZN 171.19 mln, non-interest spending was AZN 272.32 mln while the interest rate was AZN 595.07 mln, interest spending was AZN 314.88 mln, net interest profit made AZN 280.19 mln and AZN 101.13 mln loss was created on the non-interest operations.

The annual comparative analysis of financial results of bank operations shows 2 main factors. The interest profit decreased by 16.2%, non-interest loss rose by 15%. At the same time, interest rates increased by 20.2% while the interest income decreased by 0.2%. The growth rate of income and expenditure in non-interest operations was approximately similar.