Azerbaijan’s leading commercial banks released their financial results for the first quarter of 2025, showing a mixed performance in profitability, digitalisation, credit growth and capital adequacy.

Kapital Bank’s net profit drops despite revenue growth

Kapital Bank reported a 23.1% year-on-year drop in net profit to AZN54.89mn ($32.3mn) in Q1 2025, citing a significant increase in interest expenses, mainly from deposits, which rose 2.1 times y/y to AZN95.35mn. Total operating income rose 36% to AZN260.1mn, while non-interest income climbed 5.3% to AZN139.3mn. However, operating expenses jumped by AZN91.87mn, reducing operating profit to AZN93.95mn (down AZN15.95mn y/y). The bank’s total assets rose 9.5% quarter on quarter to AZN12.45bn, with the loan portfolio increasing 2.5% to AZN5.34bn. Deposits reached AZN9bn. Kapital Bank remains the country's largest bank with 118 branches and is owned by PASHA Holding.

Unibank boosts business lending and digitalisation

Unibank recorded AZN3.6mn pre-tax profit and AZN12mn operating profit in Q1, as business loans rose 32% y/y to AZN457mn, representing 41% of its credit portfolio. Total loans increased by AZN123mn. The bank’s digital push through Leobank drove 73% of operations through digital channels, while cashless transactions reached AZN3.2bn (+24%) across 99mn transactions (+30%). The customer base grew 12% y/y to 2.09mn. Deposits crossed AZN1.2bn, with AZN40mn added in term deposits. The bank’s assets surpassed AZN1.8bn (+14%), and total capital grew 10% to AZN180mn. Unibank plans to expand sustainability projects and new Leobank offerings by year-end.

AccessBank posts strong profit on business loan expansion

AccessBank reported AZN10mn net profit in Q1 2025, driven by a 14.6% y/y growth in its credit portfolio to AZN1.19bn, of which 78% (AZN924.2mn) went to businesses. Deposits rose to AZN1.06bn. The bank attracted AZN15.5mn in new international loans, raising total foreign borrowing to AZN132.3mn. Subordinated debt rose to AZN35.6mn after an additional $8mn injection. Net interest income reached AZN36.2mn (+AZN3mn y/y), and operating profit stood at AZN16.4mn. Capital rose 31% to AZN203.8mn, exceeding regulatory minimums by over 400%. Liquidity ratio stood at 83.1%, nearly three times above the Central Bank's minimum.

Bank Avrasiya profits from one-off gains despite lower operations

Bank Avrasiya posted a net profit of AZN1.98mn in Q1 2025, up 64.6% y/y, though operational profit declined 6.5% to AZN1.39mn. The profit increase was driven by lower provisioning (AZN342.2k) and unexpected income (AZN245.6k). Interest income rose 10.1% to AZN3.96mn, while interest expenses fell 5.2% to AZN574.4k. Non-interest income rose 35.6% y/y to AZN717.4k, and non-interest expenses climbed 35.9% to AZN2.26mn. The bank’s assets fell 2.3% to AZN196.4mn, and loans dropped 3.3% to AZN131.6mn. Deposits declined by 8.9% to AZN57.38mn. Capital shrank 2.2% to AZN86.5mn.

Yapı Kredi Bank Azerbaijan maintains profitability despite higher provisions

Yapı Kredi Bank Azerbaijan, a subsidiary of Turkey’s Yapı ve Kredi Bankası A.Ş., recorded AZN2.28mn net profit in Q1, down slightly from AZN2.47mn a year earlier due to a 2.6-fold increase in provisions (AZN1.6mn). Interest income rose 8.1% y/y to AZN11.54mn, and non-interest income climbed 18.3% to AZN6.46mn. Operating income increased by AZN1.87mn, outpacing a AZN1.48mn rise in operating expenses. The bank’s loan portfolio grew 1% q/q to AZN320.6mn. Total capital reached AZN102.1mn, up from AZN99.6mn at end-2024.

BTB Bank improves profitability and maintains strong capital adequacy

BTB Bank’s net profit reached AZN814k in Q1 2025, with a 14% increase in net interest income to AZN3.3mn and a 40% rise in non-interest income to AZN1.5mn. Operating profit surged 28% to AZN1.2mn. The bank processed AZN4.23mn in mortgage loans via the Mortgage and Credit Guarantee Fund and AZN365k via the State Housing Construction Agency. Total capital stood at AZN52mn, exceeding the Central Bank’s minimum (AZN50mn). Capital adequacy was at 22%, and the liquidity ratio at 146%, well above the required 30%.

VTB Azerbaijan grows assets and income sharply

VTB Azerbaijan’s assets increased 10% q/q to AZN348.5mn in Q1. The credit portfolio reached AZN235.8mn, with business loans accounting for AZN76mn or one-third of the total. Net interest income surged 42.5% y/y to AZN7.5mn, and non-interest income rose 40% to AZN3.81mn. ROE stood at 12.98%. The bank’s capital rose to AZN95.7mn, nearly double the regulatory minimum.