Azerbaijan banking assets rise 6.8% to $35.8bn in H1

Azerbaijan's banking sector grew its balance sheet by 6.8% in the first half of 2026, taking total assets to 60.9 billion manat ($35.8 billion), according to the Central Bank of Azerbaijan's Financial Stability Report. The figures were reported on 13 October 2026 by Trend News Agency.

The increase equals 3.9 billion manat ($2.3 billion) since the start of the year. Total liabilities rose 7.1%, or 3.5 billion manat ($2.06 billion), to 53.3 billion manat ($31.3 billion). Assets grew slightly more slowly than liabilities, which is worth noting for readers who follow capital buffers, although the report summary does not give capital ratios.

Sector depth passes 46%

The ratio of banking assets to gross domestic product, which the central bank calls the sector depth ratio, rose 2.5 percentage points from the end of 2025 to 46.7%. A higher ratio means banks hold a bigger share of the economy's activity on their books. It does not by itself say whether lending is healthy, so it should be read together with asset quality figures published in the same report.

What banks hold

Net loans make up 49.1% of assets, liquid assets 25.3% and other assets 25.6%. On the funding side, corporate deposits account for 42% of liabilities, individual deposits 33% and other sources 25%.

Deposits shift towards households

Corporate deposits rose 1.8%, or 0.4 billion manat ($235.3 million), to 22.3 billion manat ($13.1 billion). Retail deposits grew faster, up 6.7%, or 1.1 billion manat ($647 million), to 17.4 billion manat ($10.2 billion). As a result, individuals now hold 44% of deposits, up one point, while companies hold 56%, down one point.

For banks, a larger household share of funding is usually more stable than corporate money, which can move quickly. The report summary does not say whether the shift is lasting.

Concentration edges up

The Herfindahl-Hirschman Index, a standard measure of market concentration, rose in all three categories reported. The loan portfolio index increased 33 points to 1,213. The deposit index increased 83 points to 1,589, and the asset index increased 98 points to 1,458. Higher readings mean the market is becoming somewhat more concentrated. The report summary does not say whether the central bank regards the change as a concern.

Why it matters

For investors and corporate treasurers in Baku, the numbers describe a banking system that is growing faster than its funding base is changing in composition. The central bank held its key rate at 6.5% in recent decisions, and the balance sheet data show the system expanding under that policy setting. Readers should treat the data as one half-year snapshot rather than a trend.

The same report also covers asset quality and household debt. CBJ covers those findings in separate pieces, including the rise in nonperforming loans to $561.4 million. Data in this article comes from the central bank report as relayed by Trend. CBJ has not independently audited the figures.

Conversions to US dollars are those given by the reporting agency. The manat is pegged by the central bank at a fixed rate, so the dollar equivalents are stable across the period.