Page 44 - Small Stans and Causcasus Outlook 2022

3.6 Real economy - Azerbaijan

3.1.1 Retail
In January-November 2021, AZN38bn ($22.3bn) worth of food
products, plus beverages and tobacco products worth AZN20bn, and
non-food products worth AZN17bn were sold to consumers in the retail
trade network. Compared to January-November 2020, retail trade
turnover increased by 3.0% in real terms, including 2.5% for food,
beverages and tobacco products, and 3.6% for non-food products.

During the reporting period, 49.1% of the funds spent by consumers on
goods purchased for final consumption were spent on food, 5.0% on
beverages and tobacco products, 15.7% on textiles, clothing and
footwear, 6.0% on gasoline and diesel fuel, 5.3% percent was spent on
the purchase of electrical goods and furniture, 2.2% on pharmaceutical
products and medical supplies, 1.0% on computers,
telecommunications equipment and printing products, and 15.7% on
other non-food products.

3.1.2 Banks
Azerbaijan's banking sector finished January-October 2021 (10 months)
with a net profit of AZN570.1mn ($335mn). The 10-month net profit is
higher than the sector's net profit in 2020 (AZN567.8mn). The sector's
net profit is AZN92.1mn more than in the same period in 2020.

Unlike 2020, banks' foreign assets have increased. Thus, during the
first nine months of 2020, the country's assets abroad amounted to
$1.2bn. In the first nine months of 2021, however, the country had
$337mn in losses through the same channel. 2020's figure can be
attributed to the recall of foreign assets by local banks in the face of low
oil prices.

All banks in the country are expected to conform to ISO27001
standards and implement changes until April 2022 regarding
cybersecurity.

Another novelty in the banking sector was the availability of Apple Pay
in the country. Several banks introduced cashback campaigns in order
to facilitate the transformation to cashless shopping. Samsung Pay and
Google Pay are not yet available, but the Central Bank is reportedly
negotiating.

The amount of overdue loans in Azerbaijan as of November 1 this year
amounted to AZN815.9mn. According to the monthly report of the

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