BAKU, Azerbaijan, July 29. As of July 1 this
year, Azerbaijan’s banking sector posted a net profit of 716.3
million manats ($421.4 million).


Calculations based on data from the Central Bank of Azerbaijan
(CBA) show that this was an increase of 139.7 million manats ($82.2
million), or 24.2%, compared with the same period last year.


During the reporting period, banks generated operating profit of
1.09 billion manats ($639.1 million), up 23.3% year over year. In
the first six months of 2026, banks also paid a total of 171.1
million manats ($100.6 million) in profit tax, an increase of 27.6%
from a year earlier.


As of June 30, 2026, the 22 banks operating in Azerbaijan had
504 branches, 83 service offices, and 3,503 ATMs. During the
reporting month, employment in the banking sector increased by
0.3%, or 88 employees, bringing the total workforce to 27,462.


Alongside the banking sector update, the Central Bank of
Azerbaijan (CBA) outlined ongoing reforms and future priorities
aimed at developing the country's capital markets.







In response to a query from Trend, the CBA said that, in line with the 2024–2026
Financial Sector Development Strategy, Azerbaijan plans to deepen
its capital markets through the introduction of new financial
instruments and digital solutions.


“The strategy identifies capital market development as one of
the key priorities. It envisions building a sustainable market
infrastructure, expanding market access, strengthening investor
confidence, broadening the range of investment instruments, and
enhancing regulatory and supervisory mechanisms. In line with the
strategy, work is continuing on projects related to the
introduction of alternative financial instruments, including
securitization, derivatives and repo instruments, sukuk, venture
capital, and crowdfunding,” the CBA said.


According to the regulator, key priorities in the near term also
include expanding the participation of both institutional and
retail investors, improving financial literacy, and advancing
digital solutions and electronic trading capabilities.


“The automation of processes and the reduction of operating
costs will expand investor access to the market while supporting
greater depth and resilience in the capital market. The Central
Bank views these initiatives as part of its long-term, systematic
development strategy,” the CBA said.