Profitability Of Azerbaijani Banks To Remain Stable, Says Moody's

RunWithRugs · 2026-02-26T21:20:01+00:00

A Moody's report indicates that Azerbaijani banks will maintain stable profitability at 2%-3% due to strong net interest margins and fee income, despite potential pressure from competition and reserve requirements.

RunWithRugs

2026-02-26 21:20:01

Abstract generation in progress

(MENAFN- Trend News Agency) ** BAKU, Azerbaijan, Feb. 25.** Profitability of Azerbaijani banks will remain stable, Trend reports via Moody’s.

The latest report by Moody’s reveals that the average net income to tangible assets ratio of the Azerbaijani banks we rate should remain solid at around 2%-3%, supported by robust net interest margins, solid fee and commission income, and contained loan-loss provisioning charges.

“Margins have grown in recent years, reflecting an increasing share of higher yielding loans to retail borrowers and small and medium sized enterprises, with the economic recovery driving strong loan demand from these segments. However, there may be margin pressure, as declining Central Bank of Azerbaijan policy rates decrease the rates on banks’ interest-bearing assets while rates on their funding remain fairly rigid because of fierce competition for customers. Increased obligatory reserve requirements will somewhat constrain still strong profitability,” reads the report.

Will be updated

MENAFN25022026000187011040ID1110786224

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

1 Likes