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Problems in Azerbaijanâ€™s banking systems deepen

10 June 2011 08:33 (UTC +04:00)

Note that, banksâ€™ profit made AZN 38.31 mln in January-March and this indicated that the banks operated in loss in April.

Interest incomes of banks made AZN 347.74 mln, interest expenses â€“ AZN 188.20 mln and the net profit â€“ AZN 159.54 mln in January-April, 2011. At the same time, banksâ€™ non-interest incomes stood at AZN 87.05 mln, non-interest expenses â€“ at AZN 164.38 mln. Consequently, AZN 77.33 mln loss was observed on non-interest operations.

Note that, interest profit decreased by 2.5%, non-interest loss rose 41.2%, compared with a year ago. As well, interest expenses rose 6.3%, while interest income increased by 2.1%. Incomes on non-interest operations soared 7%, expenditures â€“ 20.8%.

The results indicate that the problems in banking system deepen. So that, the banks face serious problems during the placement of funds, while they observe no problems during involving of funds. Besides, increase of loss is related to extension of expenditures on non-interest operations.