Finance

Home page

Finance

Analysis: Consumer lending is the fastest development segment of bank sector in Azerbaijan

12 February 2013 14:22 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. As of January 1, 2013, total provision of crediting by Azerbaijan-based commercial banks made AZN 12,720.5 mln, up AZN 2,770.2 mln or 27.8% from 2012.

Central Bank of Azerbaijan says the growth on credits was AZN 678.1 mln or 5.6% in December, 2012.

As of January 1, overdue credits stood at AZN 748.8 mln, equal to 5.9% of total portfolio. Share of these credits declined 0.4 percentage points, though they increased by 18.2% in 2012.

Share of household credits in loan portfolio made 33.9%. Then, commercial and service credits have 20.8%-share. Totally, consumer lending rose AZN 1,001.7 mln or 30.25 to AZN 4,316.7 mln. So, 36.2% of growth on loan portfolio fell on share of consumption loans. These performances indicate that the consumer lending is the fastest development segment of bank sector in Azerbaijan.