BAKU, Azerbaijan, October 7. The Central Bank of Azerbaijan (CBA) has revealed the reasons behind the decline in the profitability of investment companies, said Tarlan Rasulov, Director General of the CBA, at a press conference on financial stability,Trend reports.
According to him, while the income levels of investment companies have remained stable, their expenses have increased.
“The rise in costs is mainly related to investments in infrastructure and technology, enhanced security measures, and the implementation of higher standards set by the Central Bank. Naturally, we do not expect this upward trend in expenses to continue in the next period. Some stabilization is anticipated,” Rasulov said.
The CBA data shows that the net profit of investment companies in the first half of 2025 decreased by 67 percent, from 2.9 million manat to 1.5 million manat, compared to the same period of the previous year.
The main factors contributing to this decline were higher fees and commissions, increased salary and social costs, as well as administrative expenses.
The profitability index (PI) measures the attractiveness of a project or investment. The PI is calculated by dividing the present value of future expected cash flows by the initial investment cost of the project. The higher the PI, the better the expected returns from the project.
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