11:38 - 4.02.2025

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February 4, Fineko/abc.az. S&P Global Ratings has confirmed the rating of Azerbaijani banks.

ABC.AZ informs that according to the rating agency, the main rating of local banks remained at the "bb-" level.

S&P noted that Azerbaijan's banking sector enjoys favorable macroeconomic conditions as a result of increased credit demand and improved asset quality amid high commodity prices.

Thus, oil prices and the level of economic growth had positive impact on the growth of the banking sector's loan portfolio in Azerbaijan: "In 2024, as a result of an increase in retail and corporate loans, sector's loan portfolio expanded almost by 20%. We expect investments in infrastructure and a reduction in the key interest rate will lead to double-digit growth in the loan portfolio in 2025-2026."

The rating agency reported that as of the end of 2024, loans provided by Azerbaijani banks to the construction sector amount to nearly 5%, and mortgage loans make up 15% of the total loan portfolio. Limited financing of these sectors by banks helps reduce possible risks.

S&P added that real estate prices in Azerbaijan grew by 10-15% in 2024, and real estate prices are projected to rise less than by 10% in 2025.