Tax revenues up 36.4% y/y in December 2015
In 2015, total tax revenues increased 1.0% y/y to AZN 8.7bn. Out of this amount, tax revenues collected by the Ministry of Taxes increased 0.1% y/y to AZN 7.1bn (100.1% of the budgeted amount), while tax receipts of the Customs Committee increased 5.3% y/y to AZN 1.6bn (100.07% of the budgeted amount).
On a monthly basis, tax revenues posted a strong growth in December, with receipts of the Ministry of Taxes increasing 32.1% y/y to AZN 618.2mn and tax receipts of the Customs Committee growing 51.5% y/y to AZN 200.0mn.
Turnover at Baku Stock Exchange down 21.6% m/m in December 2015
In December 2015, turnover at the Baku Stock Exchange was down 21.6% m/m (-88.0% y/y) to AZN 219.7mn on the back of reduced trade of debt instruments (-47.3% m/m to AZN 65.6mn). Overall, derivative instruments accounted for 66.9% of total turnover in December 2015. In US$ terms, turnover declined to 178.2mn (-92.4% y/y and -33.3% m/m).
Overall in 2015, the Stock Exchange trade turnover declined to AZN 8.5bn (-35.0% y/y). Trade in derivatives, introduced in 1H2014, accounted for 73.3% of total turnover. In US$ terms, turnover declined 45.2% y/y in 2015 to US$ 9.1bn due to the manat devaluation.
NPLs fell to 6.6% in November 2015
In November 2015, commercial banks loan portfolio increased 1.0% m/m to AZN 177.9mn, driven by lending expansion of 2 state-owned banks. The aggregate loan portfolio of these banks increased by AZN 311.9mn, while the loan portfolio of private banks decreased by AZN 134.0mn. In sectoral terms, loans provided to construction and real estate increased by AZN 157.6mn and to industry by AZN 208.4mn, while loans to agriculture decreased by AZN 64.0mn and to households by AZN 27.1mn. In November 2015, non-performing loans as a share of total loans fell to 6.6% (-0.4 ppts m/m).
Deposit dollarization increased to 75.9% in November 2015
In November 2015, deposits in the banking system increased 2.6% m/m to AZN 448.4mn, due to a AZN 521.1mn increase in FX deposits, mainly by non-financial entities, while deposits of households decreased by AZN 83.4mn. Overall, in November 2015, deposit dollarization inched up slightly to 75.9% (from 74.8% in the previous month).