11:38 - 10.12.2024

---

December 10, Fineko/abc.az. Some non-bank credit organizations in Azerbaijan are unable to withstand the growing competition in this sector.

ABC.AZ reports that there were significant differences between the financial indicators of NBCO Optimal Finance for 2022 and 2023. Company's loan portfolio, the volume of its assets and profit indicators have sharply decreased. Optimal Finance's loan portfolio in 2022 amounted to 2.266 million manats. However, in 2023, this figure declined to 814,000 manats (a drop of 1,452 manats, or 2.8-fold).

The decrease in the loan portfolio was also manifested in a decline in company's assets. In 2023, Optimal Finance lowered by 30%. So, if in 2022 company's assets amounted to 3.551 million manats, then in 2023 this figure reduced to 2.436 million manats. In other words, the company decreased by 1,115 manats, or about 31.4%.

The drop in the loan portfolio immediately manifested itself in company's income and profit. Optimal Finance made profit of 424,000 manats in 2022. And in 2023, having moved into the negative zone, it faced a loss of 472,000 manats.

The reduction in the loan portfolio by almost 3 times, assets by 31.4%, transition from profit to loss negatively affects the financial stability of Optimal Finance.