BAKU, Azerbaijan, October 19. A
representative of MJ Finance NBCI OJSC has been held
administratively liable as part of the supervisory measures
conducted by the Central Bank of Azerbaijan (CBA).


This was announced in a statement published by the
CBA.


According to the information, the Narimanov District
Court of Baku imposed a fine of 2,000 manat ($1,176) on the
representative for violating legislative requirements related to
combating the legalization of property obtained through criminal
means and the financing of terrorism.


The decision was issued pursuant to Article 598.1.2 of
the Code of Administrative Offenses of Azerbaijan.


According to the CBA, the violation was identified
during the Central Bank’s ongoing supervisory processes.


Currently, more than 50 licensed non-bank credit
institutions (NBCIs) operate in the CBA’s register.


According to the “Financial Stability Report”
published by the CBA, in the first half of 2026, the assets of
NBCIs in Azerbaijan grew by 23% and reached 1.53 billion manat
($900 million).


During the reporting period, there were 52 NBCIs and
35 credit unions operating in the country. Thus, the total number
of non-bank credit organizations reached 87. The share of NBCIs’
assets in the financial system’s total assets amounted to 2.4%.
During the first six months, the licenses of two NBCIs were
revoked.


During the reporting period, the net loan portfolio of
NBCIs grew by 23%, or 213 million manat ($125.3 million). The total
liabilities of these organizations increased by 23.5%, or 159.4
million manat ($93.8 million), reaching 838.7 million manat ($493.4
million). One of the main factors driving the growth in liabilities
was the raising of funds from resident financial institutions.







In the first half of 2026, the total loan portfolio of
NBCIs increased by 26%, or 272 million manat ($160 million), to 1.3
billion manat ($765 million). Consumer loans accounted for the
largest share of the loan portfolio. The volume of consumer lending
grew by 40%, or 292 million manat ($171.8 million), reaching 1.02
billion manat ($600 million).


At the same time, the volume of mortgage loans
decreased by 5.4%, or 2.7 million manat ($1.6 million), and
business loans decreased by 6.5%, or 17.4 million manat ($10.2
million). At the end of the reporting period, consumer loans
accounted for 77.5% of the loan portfolio, business loans for
18.8%, and mortgage loans for 3.6%.


The largest share of the business loan portfolio was
in the trade sector. The volume of loans issued to this sector
totaled 84 million manat ($49.4 million), or 33.9% of the
portfolio. Agriculture accounted for 22.5%, or 56 million manat
($32.9 million); other non-manufacturing sectors and the service
sector accounted for 20.4%, or 51 million manat ($30 million); and
transportation accounted for 18.5%, or 46 million manat ($27.1
million). The volume of loans issued to other sectors totaled 12
million manat ($7.06 million).


The report noted that in the first half of 2026, the
volume of non-performing loans in the NBCI sector increased by 46%
compared to the end of last year, reaching 158.6 million manat
($93.3 million). The share of non-performing loans in the total
loan portfolio rose by 1.7 percentage points to 12%. The share of
non-performing loans in the consumer loan portfolio increased by
0.5 percentage points to 13.2%, while in the business loan
portfolio, it rose by 3.6 percentage points to 9.7%.


The financial results of the NBCI sector also
improved. For the first half of 2026, the sector’s net income
totaled 121.1 million manat ($71.2 million). By comparison, a net
loss of 13.2 million manat ($7.8 million) was recorded for the same
period last year. The increase in profit was driven by higher
interest and non-interest income, as well as a reduction in
non-interest expenses.


During the reporting period, the sector’s annualized
return on assets (ROA) was 17.5%, and its annualized return on
equity (ROE) was 38.6%.


At the same time, the balance sheet capital of NBCIs
increased by 22%, or 125.3 million manat ($73.7 million), over the
six months, reaching 690 million manat ($405.9 million). An
increase in retained earnings of 79 million manat ($46.5 million)
and in authorized capital of 48 million manat ($28.2 million)
contributed to the sector’s higher capitalization level.