Azerbaijan financial sector sees asset growth in banking and SOFAZ

Azerbaijan’s financial sector shows significant growth and asset accumulation. As of August 1, 2026, the country’s banking sector assets reached $35.87 billion, a 9.5% increase compared to the previous year. The Central Bank of Azerbaijan has been implementing regulatory reforms to modernize the framework, including transitions to new accounting standards and updates to legislation regarding capital markets, ESG, and market conduct.

The State Oil Fund of Azerbaijan (SOFAZ) reported assets totaling $73.5 billion at the end of the first quarter of 2026. According to Fitch Ratings, gold is a primary driver of this portfolio, accounting for 36% of SOFAZ’s assets. The rise in gold prices has contributed to a $19.4 billion increase in SOFAZ’s assets between 2023 and early 2026, supporting Azerbaijan’s ‘BBB-’ credit rating.

In the private banking sector, TBC Group reported a 13% year-on-year increase in net profit for the first half of 2026, reaching GEL 751 million ($281 million). The group’s total assets reached GEL 44.3 billion ($16.6 billion), supported by growth in gross loans and customer deposits.