BAKU, Azerbaijan, October 13. In the first half of 2026, the banking sector’s total assets increased by 6.8% (by 3.9 billion manat ($2.3 billion), reaching 60.9 billion manat ($35.8 billion). The sector’s total liabilities rose by 7.1% (by 3.5 billion manat ($2.06 billion)) to 53.3 billion manat ($31.3 billion). As a result, the banking sector depth ratio, which reflects the ratio of assets to GDP, increased by 2.5 percentage points compared to the end of last year, reaching 46.7%.
This was stated in the “Financial Stability Report” published by the Central Bank of Azerbaijan (CBA).
According to the data, the growth in the balance sheet over the
first half of the year was primarily driven by an increase in term
deposits from individuals, which contributed to the expansion of
the loan portfolio. As of the end of the first half of 2026, 49.1%
of the banking sector’s assets consisted of the net loan portfolio,
25.3% of liquid assets, and 25.6% of other assets. In the structure
of liabilities, 42% consisted of corporate deposits, 33% of
individual deposits, and 25% of other liabilities.
“Compared to the end of last year, there were no significant
changes in the level of concentration of assets, the deposit
portfolio, or the loan portfolio. According to the Herfindahl
Hirschman Index (HHI), widely used in international practice, the
loan portfolio concentration index increased by 33 points in the
first half of 2026 compared to the end of last year, reaching
1,213. The deposit portfolio concentration index rose by 83 points
to 1,589, while the asset concentration index increased by 98
points to 1,458.“Thus, the banking system exhibits a low level of
concentration in the loan portfolio and a moderate level of
concentration in assets and the deposit portfolio. The central bank
constantly monitors the level of concentration in the banking
sector,” the statement notes.
The report emphasizes that deposits from individuals have grown as
a stable source of funding in the sector.
“In the first half of 2026, corporate deposits increased by 1.8% (by 0.4 billion manat ($235,294)), reaching 22.3 billion manat ($13.1 billion), while retail deposits grew by 6.7% (by 1.1 billion manat ($650,000)) to 17.4 billion manat ($10.2 billion). As a result, the share of individual deposits in the total deposit portfolio increased by 1 percentage point to 44%, while the share of corporate deposits decreased by 1 percentage point to 56%,” the statement said.
