Loan portfolio growth in Azerbaijan to slow down in 2026-27

11:00 - 3.03.2026


March 3, Fineko/abc.az. The growth of the loan portfolio in Azerbaijan in 2026-2027 will slow down to 10-12% compared with the annual average of 18% observed in the previous four years (which corresponds to the level of 2025), ABC.AZ informs, referrring to S&P Global Ratings.

"It is expected that the share of Phase 3 loans under IFRS in the banking system in 2026-27 will remain stable, making up 4.5-5%. We believe due to initiatives to modernize the regulatory framework and supervision of financial institutions in Azerbaijan, the level of risk in the industry has decreased," S&P stressed.