BAKU, Azerbaijan, Feb. 25. Capitalization of Azerbaijani banks will remain strong, says Moody’s, Trend reports.
“The Azerbaijani banks we rate have robust capital buffers, with TCE equal to a weighted average of 20% of RWA as of year-end 2024. The introduction of a 0.5% countercyclical buffer on banks operating in Azerbaijan starting 1 March 2025 has improved capital further. We expect robust internal capital generation will continue to support the banks' capitalization,” reads the report.
Moody’s rates five out of 22 commercial banks operating in Azerbaijan, which together accounted for around 56% of total system assets as of 31 December 2025.
According to the Central Bank of Azerbaijan, total assets of banks operating in the country stood at 57.086 billion manat as of December 31, 2025, with total liabilities at 49.744 billion manat and equity at 7.343 billion manat.
Over the course of 2025, total assets increased by 7.7%, liabilities rose 7.2%, and equity grew 11%.
In the reporting month, the banking sector’s loan portfolio expanded by 1.3% (377.5 million manat) to 30.063 billion manat. The portfolio breakdown was as follows:
Business loans: 53.6% (16.106 billion manat)
Consumer loans: 31.1% (9.354 billion manat)
Mortgage loans: 15.3% (4.603 billion manat)
For the full year, the loan portfolio grew 9.4% (2.585 billion manat), including increases of 1.319 billion manat for business loans, 909.3 million manat for consumer loans, and 357 million manat for mortgages.
Banks posted a net profit of 1.162 billion manat and an operating profit of 1.862 billion manat for 2025.