Profitability in NBCO sector has increased much

In the 1st half of 2024, the dynamics of profit growth in the sector of non-bank credit institutions is observed, banks.az informs, referring to CBA financial stability report for the 1st half of 2024.

In the second half of 2024, NBCOs’ profitability totaled 76.6 million manats (about 191% more against the profit for Jan-Jun 2023).

In addition to the increase in interest income with growth of the loan portfolio, the main factors in growth of profitability of the sector were increase in the operational efficiency of credit institutions. Thus, the share of non-interest income in total income grew from 14% to 25%. Amid growth of profitability of the sector, ROA and ROE indicators increased 2-fold versus June 2023 and made up 17.91% and 41%, respectively.

The sector's capital positions expanded amid the growth of retained earnings. In six months, the NBCOs’ capital grew by 19% (59 million manats) up to 374 million manats.

Capital gains were linked with both capital injections and retained earnings of the NBCO sector. Thus, in the 1st half of the year, retained earnings increased by about 61% (63 million manats) and amounted to 166 million manats, while the authorized capital by 3.4% (6.9 million manats) up to 211 million manats.