BAKU, Azerbaijan, October 4. The risk profile within Azerbaijan's non-financial sector is being sustained at a controllable threshold, the Central Bank of Azerbaijan (CBA) stated in its semiannual Financial Stability Report, Trend reports.
The report notes that as of the end of 2024, the total business portfolio of the banking sector reached 14.8 billion manat ($8.7 billion). Analysis was conducted on clients representing 56 percent of this portfolio, leading to the conclusion that risks in the non-financial sector remain under control.
Profitability assessments indicate that 91 percent of the companies covered in the analysis are operating profitably.
“The sector’s profitability was evaluated using operating and net profit margin indicators. Among the sectors, the information and communication sector showed higher profitability compared to others,” the report reads.
The liquidity of the non-financial sector was evaluated using absolute and current liquidity ratios. While the absolute liquidity ratio in the real sector was relatively low, the current liquidity ratio exceeded one, except in the information and communication sector, where it fell slightly below one.
In Azerbaijan, the non-financial sector comprises a diverse array of enterprises and operations that generate tangible products and service offerings, as opposed to participating in financial intermediation mechanisms. This includes domains such as industrial production, construction methodologies, agricultural practices, and a multitude of service-oriented sectors.
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