Azerbaijan’s banking sector demonstrated strong performance in 2024, with substantial growth in loans, assets and deposits across leading financial institutions. While most banks saw profitability gains, some faced challenges due to rising provisions and operational expenses. Key players embraced digitalisation, environmental, social and governance (ESG) practices, and green financing to strengthen their positions.

International Bank of Azerbaijan (ABB)
ABB’s credit portfolio increased by 25.8% year on year to AZN6.35bn ($3.73bn), driven by 24.1% growth in business loans (AZN3.11bn), 31.3% in consumer loans (AZN1.8bn) and 22.9% in mortgage loans (AZN1.44bn). Operational income grew 22.8% y/y to AZN1.25bn. However, higher provisions and operating costs, up 45.3% to AZN770.6mn, resulted in a decline in net profit to AZN293.7mn. ABB’s deposits rose 6.5% y/y to AZN10bn, with individual deposits increasing by AZN592.2mn. The bank’s capital adequacy ratios exceeded regulatory requirements, supported by a total capital of AZN1.74bn.

ABB also expanded its investment portfolio by 54.7% y/y to AZN3.53bn, focusing on securities. Its successful IPO completion raised the charter capital to AZN1.28bn, further strengthening its market leadership. The bank also reported growth in capital adequacy ratios, with its Tier 1 capital adequacy at 16.92% and overall adequacy at 20.19%, significantly above regulatory norms.

AccessBank
As the leader in microfinance, AccessBank posted a net profit of AZN54.1mn, a 36% y/y increase. Its credit portfolio grew 13.6% y/y to AZN1.15bn, with 78.3% allocated to business loans. Business lending expanded by 15.6%, reaching AZN901.9mn, with 59.5% directed to regional projects. Deposits surpassed AZN1bn, supported by enhanced customer trust and international borrowing of AZN73.1mn. The bank’s total capital grew by 29% to AZN185mn, providing a robust liquidity position with a 70.6% liquidity ratio, exceeding regulatory requirements by 2.4 times.

Bank Respublika
Bank Respublika’s assets rose 11% to AZN2.18bn, while its loan portfolio grew by 25% to AZN1.47bn. Net profit increased 26% to AZN50.6mn. The bank focused on financing the real sector and partnered with several international financial institutions (IFIs), including IFC, EBRD and EIB Global. Its total capital reached AZN222.2mn, reflecting a 34% y/y growth. The bank’s digital transformation initiatives improved customer experiences, while social and environmental projects reinforced its commitment to sustainable growth.

Unibank
Unibank highlighted its commitment to ESG by issuing Azerbaijan’s first green bonds and financing hybrid taxi fleets. The bank’s loan portfolio grew by 33% to AZN437mn, with microloans comprising 70% of its microcredit portfolio in rural areas. Deposits exceeded AZN1.2bn, and net profit reached AZN20.4mn. Unibank’s green financing initiatives and digital transformation have positioned it as an innovative leader in the market. The bank’s strategic projects also included supporting liberated territories with the first business loans issued under state-backed development programmes.

Azər-Türk Bank
Azər-Türk Bank’s assets doubled to AZN2.08bn, while its loan portfolio surged 79% y/y to AZN799.9mn. Business loans grew by 7.2 times to AZN311.8mn, while consumer and mortgage loans expanded by 66% and 23% respectively. Deposits tripled to AZN1.46bn, supported by a 4.6-fold increase in corporate deposits. Net profit rose 52% to AZN21.3mn, and operational income grew by 58.2% to AZN146.5mn. The bank’s ROA stood at 1.4%, while return on equity (ROE) reached 23.6%, reflecting improved financial performance.

Xalq Bank
Xalq Bank reported a 26.2% y/y increase in net profit to AZN65.7mn, with assets stabilising at AZN3.07bn. The loan portfolio reached AZN1.94bn, and deposits totalled AZN1.91bn. The bank’s ROE improved to 13.44%, reflecting enhanced efficiency. Xalq Bank’s ESG initiatives included joining the UN Global Compact and cultural projects such as the “Xalq Əmanəti” series. Additionally, Moody’s upgraded the bank’s baseline credit assessment, underscoring its stable outlook and operational resilience.

Premium Bank
Premium Bank doubled its consumer loan portfolio to AZN40.7mn, reflecting its retail banking strategy. Net profit rose to AZN12.4mn, supported by reduced operating expenses. The bank’s assets reached AZN640.9mn, with a total capital of AZN172.7mn – 3.4 times above the regulatory minimum. Ipoteka loans also expanded by 13.2% to AZN75.8mn, while the bank strengthened its focus on digitisation and customer-centric services.

Yapı Kredi Bank Azerbaijan
Yapı Kredi’s credit portfolio grew by 8.8% to AZN317.6mn, while deposits rose 45.8% to AZN534.8mn. Operational profit increased to AZN19.8mn, driven by a 22.7% rise in total income to AZN72mn. The bank’s assets expanded by 41.8% to AZN730.4mn. Focused on efficiency and growth, the bank also achieved an increase in total capital to AZN99.6mn, reinforcing its operational capabilities.

Ziraat Bank Azerbaijan
Ziraat Bank Azerbaijan’s net profit surged 70.4% y/y to AZN14.5mn, with loans increasing 35.5% to AZN529.7mn. Deposits grew 37.5% to AZN565.7mn, and operational profit rose to AZN32.3mn. Total assets expanded by 44.7% to AZN921.1mn. The bank’s focus on corporate clients and expanded credit offerings underpinned its strong growth trajectory. Additionally, Ziraat Bank’s capital grew by 14% to AZN127.7mn, showcasing a robust financial structure.

Bank of Baku
Bank of Baku achieved a net profit of AZN25.9mn, slightly up from 2023. Its loan portfolio grew 15.4% to AZN760.4mn, and deposits increased 14.9% to AZN592.5mn. Operational revenue rose by 20.9% to AZN171.4mn. The bank’s retail-focused strategy also boosted consumer loan growth, while improving operational efficiency supported sustained profitability.

Bank BTB
Bank BTB reduced its net loss to AZN839,000 from AZN2.78mn in 2023, driven by a 91% rise in operational profit to AZN5.3mn. The bank’s credit portfolio reached AZN270mn, while deposits grew modestly. BTB’s focus on cost containment and targeted loan growth helped stabilise its financial position, supported by a capital adequacy ratio of 21.4%, well above regulatory requirements.