13:01 - 1.07.2019

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July 1, Fineko/abc.az. Last year, Muganbank continued the development of corporate lending, mainly in the infrastructure and agricultural sectors, and suspended giving of unsecured retail loans.

Muganbank’s report says that as a positive factor, Bank's customer base was less volatile than in the last 3 years, thanks to the growing trust of customers and sustainable recovery of the economy of Azerbaijan. Also, the overall growth in credit activity remained at an unprecedented level - 5%, compared with an average indicator of 11%.

Meanwhile, Bank's income potential remained at a rather weak level, and the return on average capital, due to the pressure on the net interest rate, as well as the weak efficiency of the operation, was less than 2%. The cost-to-income ratio in Muganbank made up 80% at the end of 2018 against the average figure of competitors of 50-55%.

The report says that the Bank expects that its profitability will remain weak over the next two years, and the Bank will continue to depend on capital investments from shareholders to support business growth.