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ROA decreases in banking system

13 January 2011 15:33 (UTC +04:00)

According to APA-Economicsâ€™ calculations this index was 1% on 11 months-results of 2010.

Thus, banksâ€™ pre-tax profit made AZN 122.87 mln in 11 months, as of December 1, total assets was AZN 12.697 bln.

Note that, according to results of 2009, the banksâ€™ pre-tax profit stood at AZN 281.09 mln, total assets â€“ at AZN 11.665 bln. Thus, the ROA index was 2.4% in accordance to results of 2009. As you see, this index has been decreased, sharply in 2010.

The reason of this was a decrease of YTM and profit in bankâ€™s activity. Thus, the interest rates of banks decreased by 12.8% compared with a year ago, non-interest rates rose 11.8%. As well as, interest expenditures rose 19.2%, while interest rate increased by 1.4%. About non-interest operations, the growth rate on income and expenditure made 9.5% and 10.4%.