17:47 - 25.02.2026

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February 25, Fineko/abc.az. The agency also predicts sustained profitability in the banking sector, ABC.AZ reports, citing international rating agency Moody's Outlook for Azerbaijan's Banking System.

The average net income-to-tangible assets ratio among rated banks is expected to remain in the 2–3% range. This is supported by stable net interest margins, substantial fee income, and moderate provisioning costs. Margin expansion in recent years has been driven by a higher share of high-yield loans issued to retail customers and small and medium-sized enterprises amid strong demand.

"However, there may be margin pressure, as declining Central Bank of Azerbaijan policy rates decrease the rates on banks' interest-bearing assets while rates on their funding remain fairly rigid because of fierce competition for customers. Increased obligatory reserve requirements will somewhat constrain still strong profitability," the document says.