Bank lending to business grew AZN 617 million in September. Construction accounted for AZN 417 million of the increase while the trade portfolio contracted.
Construction was the main driver
The CBA purpose-based business lending table 5.8 shows construction loans rising from AZN 2.61 billion to AZN 3.03 billion. The AZN 417.2 million increase represented about 67.6% of total monthly business-loan growth.
Banks’ overall business portfolio reached AZN 18.44 billion, up from AZN 17.82 billion in August. These are outstanding balances, so the change is not the value of newly issued loans during the month.
Growth was uneven across sectors
Agriculture added AZN 116.9 million, industry AZN 87.6 million and information and communication AZN 40.6 million. Trade declined AZN 69.5 million and transport AZN 17.4 million.
Trade retained the largest portfolio among the listed categories at AZN 4.22 billion. Construction’s AZN 3.03 billion exceeded industry’s AZN 2.84 billion. The largest sector and the principal source of current growth were therefore different.
| Sector, AZN million | August | September | Change |
|---|---|---|---|
| Construction | 2,613.9 | 3,031.1 | +417.2 |
| Agriculture | 2,070.4 | 2,187.3 | +116.9 |
| Industry | 2,756.0 | 2,843.6 | +87.6 |
| Trade | 4,284.7 | 4,215.3 | −69.5 |
| Transport | 2,125.1 | 2,107.8 | −17.4 |
Debt growth is not a construction output measure
A larger construction loan balance means increased banking exposure to the sector. The table does not disclose how much financed new projects, working capital or refinancing.
Assessing sustainability requires project completions, sales and debt-servicing performance. September’s figures show construction gaining weight in lending, but do not directly measure construction work completed.
