BAKU, Azerbaijan, October 19. A representative of MJ Finance NBCI OJSC has been held administratively liable as part of the supervisory measures conducted by the Central Bank of Azerbaijan (CBA).
This was announced in a statement published by the CBA.
According to the information, the Narimanov District Court of Baku imposed a fine of 2,000 manat ($1,176) on the representative for violating legislative requirements related to combating the legalization of property obtained through criminal means and the financing of terrorism.
The decision was issued pursuant to Article 598.1.2 of the Code of Administrative Offenses of Azerbaijan.
According to the CBA, the violation was identified during the Central Bank’s ongoing supervisory processes.
Currently, more than 50 licensed non-bank credit institutions (NBCIs) operate in the CBA’s register.
According to the “Financial Stability Report” published by the CBA, in the first half of 2026, the assets of NBCIs in Azerbaijan grew by 23% and reached 1.53 billion manat ($900 million).
During the reporting period, there were 52 NBCIs and 35 credit unions operating in the country. Thus, the total number of non-bank credit organizations reached 87. The share of NBCIs’ assets in the financial system’s total assets amounted to 2.4%. During the first six months, the licenses of two NBCIs were revoked.
During the reporting period, the net loan portfolio of NBCIs grew by 23%, or 213 million manat ($125.3 million). The total liabilities of these organizations increased by 23.5%, or 159.4 million manat ($93.8 million), reaching 838.7 million manat ($493.4 million). One of the main factors driving the growth in liabilities was the raising of funds from resident financial institutions.
In the first half of 2026, the total loan portfolio of NBCIs increased by 26%, or 272 million manat ($160 million), to 1.3 billion manat ($765 million). Consumer loans accounted for the largest share of the loan portfolio. The volume of consumer lending grew by 40%, or 292 million manat ($171.8 million), reaching 1.02 billion manat ($600 million).
At the same time, the volume of mortgage loans decreased by 5.4%, or 2.7 million manat ($1.6 million), and business loans decreased by 6.5%, or 17.4 million manat ($10.2 million). At the end of the reporting period, consumer loans accounted for 77.5% of the loan portfolio, business loans for 18.8%, and mortgage loans for 3.6%.
The largest share of the business loan portfolio was in the trade sector. The volume of loans issued to this sector totaled 84 million manat ($49.4 million), or 33.9% of the portfolio. Agriculture accounted for 22.5%, or 56 million manat ($32.9 million); other non-manufacturing sectors and the service sector accounted for 20.4%, or 51 million manat ($30 million); and transportation accounted for 18.5%, or 46 million manat ($27.1 million). The volume of loans issued to other sectors totaled 12 million manat ($7.06 million).
The report noted that in the first half of 2026, the volume of non-performing loans in the NBCI sector increased by 46% compared to the end of last year, reaching 158.6 million manat ($93.3 million). The share of non-performing loans in the total loan portfolio rose by 1.7 percentage points to 12%. The share of non-performing loans in the consumer loan portfolio increased by 0.5 percentage points to 13.2%, while in the business loan portfolio, it rose by 3.6 percentage points to 9.7%.
The financial results of the NBCI sector also improved. For the first half of 2026, the sector’s net income totaled 121.1 million manat ($71.2 million). By comparison, a net loss of 13.2 million manat ($7.8 million) was recorded for the same period last year. The increase in profit was driven by higher interest and non-interest income, as well as a reduction in non-interest expenses.
During the reporting period, the sector’s annualized return on assets (ROA) was 17.5%, and its annualized return on equity (ROE) was 38.6%.
At the same time, the balance sheet capital of NBCIs increased by 22%, or 125.3 million manat ($73.7 million), over the six months, reaching 690 million manat ($405.9 million). An increase in retained earnings of 79 million manat ($46.5 million) and in authorized capital of 48 million manat ($28.2 million) contributed to the sector’s higher capitalization level.
