Azerbaijan's Banking Sector Sees Ongoing Decrease In Dollarization Of Loans

(MENAFN- Trend News Agency) BAKU, Azerbaijan, April 15.​ The foreign currency position of Azerbaijan's banking sector remains within prudential limits, and the process of de-dollarisation has continued, Trend reports via the Central Bank of Azerbaijan (CBA).

According to information, the dollarisation level of the banking sector's credit portfolio decreased by 2.7 percentage points throughout 2024, bringing it down to 16.1 percent.

“In the deposit portfolio, dollarisation also declined, falling by 0.9 percentage points to reach 37.5 percent. The banking sector maintained a positive trend in profitability, recording net profits exceeding one billion manat [$588.2 million].

By the end of 2024, the sector's capital adequacy ratio stood at 17.6 percent, exceeding the minimum prudential requirement by a factor of 1.8. Return on assets for the banking sector reached 2.1 percent, while return on equity was reported at 18.1 percent,” the CBA noted.

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