Yapı Kredi Bank Azerbaijan CJSC Announces Financial Results for Q2 2021

As of the end of the second quarter of 2021, Yapı Kredi Bank Azerbaijan recorded growth in total balance sheet capital compared to the same period of the previous year. The Bank’s total balance sheet capital rose to AZN 82.2 million.

The total volume of loans issued to customers increased by 10% compared to year-end, reaching AZN 163.6 million. Notably, the Bank continued its commitment to supporting the private sector, increasing business loans by 13%. A portion of these loans was provided to companies engaged in ongoing reconstruction efforts in the liberated territories.

Real estate loans also grew by 15%. Alongside this increase in the total volume of loans issued to customers, the Bank strengthened its loan portfolio risk management policy by allocating AZN 40.5 million in provisions for potential losses.

In the first six months of the year, the Bank’s net interest income amounted to AZN 11.2 million. Additionally, the Tier 1 capital adequacy ratio, total capital adequacy ratio, and leverage ratio all improved compared to the same period last year. Specifically, the Tier 1 capital adequacy ratio rose to 41.23%, the total capital adequacy ratio to 42.19%. The leverage ratio of the Bank increased to 21% in the first quarter of the current year. As a result, the Bank’s capital adequacy ratios were significantly above the regulatory standards set by the supervisory authority. For reference, the Central Bank mandates a minimum total capital adequacy ratio of 10%.

As of the end of Q2 2021, the Bank’s total capital stood at AZN 74 million, exceeding the statutory minimum capital requirement of AZN 50 million.

Yapı Kredi Bank Azerbaijan is a member of a banking group operating in many European countries. With its main shareholder being Koç Holding (Türkiye), the Bank continues to provide a wide range of services to customers through its branches in Baku and Sumgayit, a 24/7 Call Center (*0444), and Internet/Mobile Banking products.