Baku: In 2025, credit unions in Azerbaijan experienced a financial downturn, reporting a loss of 0.3 million manat.

According to Azeri-Press News Agency, this marks a significant shift from the previous year, 2024, when credit unions managed to achieve a net profit of 0.08 million manat.

The financial performance of credit unions during the reporting period showed a net interest income of 2 million manat, which represents an 11.1% increase compared to the prior year. Additionally, operating profits also saw an 11.1% rise, reaching 1 million manat. However, as of January 1, 2026, overall assets of credit unions experienced a 1.6% decrease, totaling 12.4 million manat. Of these assets, a substantial 84.7% or 10.5 million manat were allocated as loans to customers, although the sector's loan portfolio experienced a 1% decline over the past year.

The liabilities of the credit unions also saw a reduction, decreasing by 3.6% to 2.7 million manat. Furthermore, the balance sheet capital experienced a slight decrease of 1%, settling at 9.7 million manat. This financial shrinkage indicates challenges within the sector as it navigates changing economic conditions.