PASHA Bank's Loan Book Tops AZN 4bn as Capital Passes AZN 1bn

PASHA Bank, Azerbaijan's largest private lender by assets, reported a loan portfolio above 4 billion manat ($2.39 billion) and capital in excess of 1 billion manat for the first time in its history, at its first press conference since completing its initial public offering.

Executives presented first-half 2026 results in Baku on 18 September. Assets rose 1.4% to 9.98 billion manat ($5.87 billion), loans grew 5% against end-2025 to 4.08 billion manat, capital increased 4.7% to 1.01 billion manat, and deposits slipped 2% to 7.75 billion manat. Interest income rose 10.2% to 301.8 million manat, operating income 1.6% to 225 million manat, and net income 0.6% to 96.5 million manat.

Lending tilts to the non-oil economy

Chief Financial Officer Murad Suleymanov, a member of the executive board, said the loan portfolio "has been formed mainly in the non-oil sector, particularly in areas such as trade, services, transport and communications."

Deputy CEO Bahruz Naghiyev put figures to that shift. The bank's non-oil loan portfolio rose from 2.9 billion manat ($1.7 billion) in June 2025 to 3.31 billion manat ($1.94 billion) in June 2026, a 13.2% year-on-year increase, against a backdrop he described as "6.5% nominal and 1.5% real growth in the non-oil economy."

Transport was the standout. Loans to the sector climbed from 269 million manat ($158.2 million) to 663 million manat ($390 million), an increase of 146.7%. Within the non-oil book, trade accounts for 22.3%, transport 20%, industry 16%, construction 12%, agriculture 5.5% and information and communications technology 2.1%.

Across the whole portfolio at end-June, trade and services represented 36.6% (1.493 billion manat), construction 16.5% (674.8 million), transport and telecoms 11.4% (465.5 million), individuals 10.9% (444.8 million), production 7.6%, energy 5.7% and non-bank credit organisations 5%.

Liquidity well above requirement

Loans equate to 39.9% of assets, up from 38.5% at end-2025, while more than 57% of assets sit in financial instruments. Investment securities fell 37.4% to 1.6 billion manat from 2.57 billion at end-2025 — a rotation out of securities and into lending.

"While the minimum requirement for capital adequacy is 12%, this figure reaches 20% at PASHA Bank," Suleymanov said. "The liquidity ratio stood above 300% at the end of the six months, against a minimum requirement of 100%. The immediate liquidity ratio exceeded 47%, compared to the required 30%."

Naghiyev said the share of mobilised funds channelled into lending has risen from about 62% three years ago to around 70% today, and that "these figures should increase further."

Green lending and Shams-1

The bank's green loan portfolio stands at 36.8 million manat ($21.6 million), of which 64.1% is allocated to green transport projects. PASHA Bank acted as sole financial partner on the 25-megawatt Shams-1 solar plant in Nakhchivan, providing roughly 8.5 million manat ($5 million).

No acquisitions, more dividends

Naghiyev ruled out expansion by purchase: "We currently have no plans to acquire any local or foreign banks. Our primary focus is trade finance among Azerbaijan, Turkiye and Georgia." He described consolidation into larger banks as a positive competitive development across the sector.

Suleymanov flagged a further dividend of about 53.5 million manat ($31.5 million) in October, following 120 million manat distributed earlier this year on 2025 results — close to a 60% payout against a policy range of 30% to 40%. Shareholders agreed in June to raise charter capital by 170 million manat. The bank's IPO was subscribed 129%, drawing 66.3 million manat in bids from 17,960 unique investors, with 51.3 million manat placed.

Further Reading

• Azerbaijan's Draft 2027 Budget Holds Oil at $65, Non-Oil Revenue at 60.5%
• Remittances to Azerbaijan Jump 40% as Russian Transfers Surge 67%