BAKU, Azerbaijan, Feb. 25. Funding and liquidity of Azerbaijani banks will be stable, Trend reports via Moody’s.
Moody’s analysts note that Azerbaijani banks are mainly funded with customer deposits, which grew 1.4% annually as of December 2025 and accounted for about 77% of the banks' total liabilities.
“The share of foreign-currency deposits in Azerbaijan was 37% as of December 2025, down from 48% as of year-end 2022 (over 70% in 2016). At the end of December 2025, around 41% of banking sector assets were liquid – comprising cash and cash equivalents, due from banks, and investments in sovereign and quasi-sovereign debt securities – providing a strong buffer against external shocks,” says 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.