BAKU, Azerbaijan, June 12. The Central Bank of
Azerbaijan (CBA) completed 2025 with a profit.
This was announced in the report by the CBA.
According to the International Financial Reporting Standards
(IFRS), the revenues of the CBA amounted to 1.06 billion manat
($624 million) as of December 31, 2025.
The information says that 863.8 million manat ($508.1 million)
of revenues came from interest, revaluation, and conversion income
generated through the management of foreign currency assets.
Another 69.5 million manat ($40.9 million) was generated from
interest income on securities acquired in the domestic market, 6.9
million manat ($4.1 million) from interest on centralized credit
resources, and 18.5 million manat ($10.9 million) from services
provided to customers.
In addition, 8.8 million manat ($5.2 million) came from the
amortization of financial assets, 0.7 million manat ($412,000) from
changes in the fair value of those assets, and 0.7 million manat
($412,000) from income generated through derivative financial
instruments in the domestic market.
Meanwhile, 12.8 million manat ($7.5 million) was generated from
the reversal of provisions created for financial assets classified
at amortized cost, while 14.5 million manat ($8.5 million) came
from the sale of commemorative and investment banknotes, the
revaluation of investment property, and other income sources.
Accounting income from the revaluation of foreign exchange
positions amounted to 63.4 million manat ($37.3 million).
During the reporting period, the CBA's total expenses amounted
to 334.8 million manat ($197 million), of which 211.6 million manat
($124.5 million) were operating expenses.
Operating expenses mainly stemmed from costs incurred through
the CBA's sterilization operations, including 114.9 million manat
($67.6 million) in interest expenses on deposits attracted from
banks, 27.8 million manat ($16.4 million) on CBA notes, and 13.7
million manat ($8.1 million) on repo transactions conducted with
banks.
In addition, operating expenses included 2.2 million manat ($1.3
million) in commission expenses related to operations in
international financial markets, 31.5 million manat ($18.5 million)
in interest expenses associated with the State Treasury Agency, the
State Oil Fund of Azerbaijan, and the Deposit Insurance Fund, 3.8
million manat ($2.2 million) in net interest expenses related to
the International Monetary Fund, 3 million manat ($1.8 million) for
the transportation of foreign cash currency, and 14.7 million manat
($8.6 million) for the production and transportation of paper and
metal coins, including commemorative and anniversary issues.
After operating expenses, the remaining 123.2 million manat
($72.5 million) of the Central Bank's expenditures consisted of
administrative and other conventional costs. These included 65.2
million manat ($38.4 million) for employee salaries and
contributions to the State Social Protection Fund, 28.8 million
manat ($16.9 million) in depreciation expenses for fixed assets and
intangible assets, and 29.2 million manat ($17.2 million) in other
routine expenses, including software and server support,
maintenance and security of administrative buildings, business
travel, and related costs.
As a result, the CBA's financial activities generated a profit
of 724.8 million manat ($426.4 million) in 2025, while retained
realized profit amounted to 586.0 million manat ($344.7
million).
As of December 31, 2025, the CBA's total capital stood at 2.15
billion manat ($1.27 billion). This included 33.3 million manat
($19.6 million) in reserves recognized through other comprehensive
income for the revaluation of foreign currency positions, 6 million
manat ($3.5 million) in accounting gains from the revaluation of
securities measured at fair value through other comprehensive
income, and 1.12 billion manat ($656 million) in retained
earnings.
In 2025, 542.2 million manat ($318.9 million) from the retained
profit generated in the previous year (2024) was transferred to the
State Debt and Guarantee Obligations Support Fund.
