An interview with Orxan Ismayilov, Deputy Chair of the Management Board and Chief Financial Officer of AccessBank.

How would you evaluate 2025 for AccessBank in terms of financial performance? What key highlights would you like to emphasize from the year-end results?

The year 2025 was characterized by steady growth and sustainable financial performance for AccessBank. The broader economic environment—particularly the non-oil sector—recorded 2.7% real growth, which had a positive impact on the financial sector and supported improvements in the Bank’s operational and business metrics.

During the reporting period, the Bank’s key financial indicators demonstrated positive momentum. Total assets increased by 19.2%, or AZN 285 million, reaching AZN 1.8 billion. The loan portfolio grew by 15.9%, exceeding AZN 1.3 billion. Total liabilities rose by 17.9% to AZN 1.5 billion, while the deposit portfolio stood at AZN 1.1 billion. The Bank’s active customer base surpassed 300,000.

The growth of the loan portfolio was primarily driven by the Bank’s strategic priority: business lending. Currently, more than 75% of the loan portfolio consists of business loans, which increased by AZN 121 million during the year. AccessBank continues to hold a leading position in financing micro and small businesses, representing approximately 25% of the sector’s total loan portfolio.

Collaboration with corporate clients also expanded in 2025. In particular, several financing projects were implemented under the Risk Sharing Facility with the European Bank for Reconstruction and Development (EBRD). Within this framework, tripartite loan agreements were signed with AZZA for AZN 14 million and with AzVirt LLC for EUR 5 million.

Cooperation with international financial institutions intensified throughout the year. More than AZN 100 million in funds was attracted from international partners, and an additional USD 10 million in long-term subordinated debt was secured. As a result, total foreign funding exceeded AZN 200 million.

In terms of profitability, interest income reached AZN 256 million, reflecting a 14.1% increase compared to the previous year. Net interest income stood at AZN 156 million. Operating profit increased by AZN 6 million compared to 2024, reaching AZN 76 million.

The Bank concluded the year with a net profit of AZN 49.1 million. Return on equity (ROE) was 25.5%, while total capital increased to AZN 238 million, demonstrating a strengthened capital position and enhanced financial stability.

How did AccessBank’s 2025 financial results align with its strategic objectives? What were the key changes compared to previous years?

Analysis of the results indicates that the Bank’s strategic plan has been implemented consistently and systematically. Evaluating strategic objectives requires examining long-term trends rather than short-term outcomes. In this context, the end-2021 indicators—marking the beginning of the post-pandemic period—provide a useful baseline for comparison.

Since the end of 2021, significant growth has been achieved across the Bank’s key financial indicators. Total assets nearly doubled to AZN 1.8 billion, and the loan portfolio more than doubled to AZN 1.3 billion. Total capital increased approximately threefold from AZN 80 million to AZN 238 million. During the same period, the capital adequacy ratio improved from 11.9% to 16.3%, while ROE consistently remained above 20%.

This performance reflects the successful execution of the Bank’s strategic priorities. It also demonstrates the positive outcomes of strengthened risk management practices, improved operational efficiency, enhanced product and service offerings, and expanded financial accessibility for customers.

Overall, the results achieved during the strategic period confirm the Bank’s sustainable business model, a stronger capital base, and long-term growth potential.

What do these results suggest about the Bank’s financial resilience and long-term growth potential?

Assessing the Bank’s resilience requires a focus on risk management. Typically, this assessment considers two components: expected losses and unexpected risks. Provisions are created to cover expected losses, while the adequacy of capital is the key measure of resilience against unexpected risks.

In 2025, the Bank created AZN 16.3 million in additional provisions to cover potential risks. As a result, total provisions exceeded the level of non-performing loans, demonstrating that the Bank’s risk-exposed portfolio is adequately provisioned and that potential losses are unlikely to materially affect financial stability.

Resilience against unexpected risks is reflected in the Bank’s capital position. As of year-end, total capital amounted to AZN 234.4 million, with a capital adequacy ratio of 16.3%. Considering the regulatory minimum requirements of AZN 50 million for total capital and 10.5% for capital adequacy, the Bank maintains a substantial buffer above regulatory thresholds.

This robust capital and provisioning position strengthens the Bank’s ability to absorb risks and provides a solid foundation for the sustainable implementation of planned growth strategies.

Considering current financial indicators, what are AccessBank’s expectations for 2026? Will the strategy focus on caution or growth?

In planning for the next period, the Bank has taken into account Azerbaijan’s macroeconomic outlook, the country’s key economic priorities, and government budget targets. Current forecasts suggest that 2026 will remain a year of positive economic growth, with real GDP projected to increase by approximately 2.4% and non-oil sector growth expected to exceed 4%. The non-oil sector is anticipated to remain the primary driver of growth.

Given the Bank’s business model and investment portfolio structure, the main focus remains on financing the real economy, particularly the business segment. Accordingly, the Bank plans balanced and sustainable growth of its loan portfolio in parallel with expanding economic activity.

AccessBank will continue to support economic growth through business financing, particularly by improving access to finance for micro, small, and medium-sized enterprises. This approach aligns with both economic diversification policies and inclusive finance principles.

What will be the Bank’s main priorities to drive financial development in 2026?

AccessBank’s strategic priorities remain unchanged. Financing micro, small, and medium-sized enterprises continues to be the core growth segment. Favorable macroeconomic conditions and strong trends in the non-oil sector provide a solid foundation for the continued expansion of this segment. The Bank plans to maintain balanced and sustainable growth in business lending.

At the same time, cooperation with international financial institutions remains a priority. 2025 was an active year in terms of foreign funding, with more than AZN 100 million raised from external sources. By year-end, total foreign funding exceeded AZN 200 million. Additionally, the Bank secured a USD 10 million long-term subordinated debt facility from BlueOrchard Finance, further strengthening the capital base.

The Bank also benefits from broader economic developments, including the August 2025 trilateral agreement between Azerbaijan, the United States, and Armenia, increased international trade activity, large-scale non-oil projects, and reforms in the green energy sector. These factors have enhanced Azerbaijan’s attractiveness to foreign investors, creating opportunities for the Bank to expand partnerships with both existing and potential international counterparts.

Expanding the service network and providing fast, high-quality services to customers remain among the top priorities. Customer satisfaction will be enhanced not only through branch operations but also through digital channels. The Bank plans to further improve the mobile application’s user experience and functionality, ensuring broader access to essential banking services and payment solutions in digital channels.

By implementing these measures, AccessBank expects positive financial performance in 2026, while further strengthening its capital buffer, enhancing its risk management framework, and improving profitability as strategic priorities.