Azerbaijan's Central Bank has no plans to impose additional restrictions on the operations of Bank Melli Iran's Baku branch, despite the Iranian financial institution remaining subject to US sanctions, Central Bank Governor Taleh Kazimov said on Thursday. Speaking at a press conference on the Central Bank's interest rate corridor decision, Kazimov emphasised that the Iranian bank's presence in Azerbaijan's financial sector remained negligible and that its operations complied with domestic regulatory requirements. According to Trend, the governor said the bank's market share was close to zero, adding that Azerbaijani authorities did not envisage further measures against the institution.
"It has been under sanctions for years and continues its activities with Azerbaijan, and we have no plans regarding any new restrictions. It complies with the requirements of the Central Bank of Azerbaijan. We do not envisage any measures being taken by the country.
The bank has been operating in the market of Azerbaijan for a long time and understands the rules. That is, we do not face any problems," Kazimov stated. His remarks indicate that Azerbaijan intends to maintain its existing regulatory approach towards Bank Melli Iran, notwithstanding the international sanctions imposed on the Iranian lender.
The governor's assessment of the bank's limited market presence is also reflected in its relatively modest financial operations in Azerbaijan, although the institution has continued to generate profits through its Baku branch. Bank Melli Iran's revenues rise in 2025 despite falling profits Financial statements from Bank Melli Iran's Baku branch show that the institution generated total revenues of AZN 5.746 million (approximately $3.38 million) in 2025, representing a 12.7% increase compared with AZN 5.097 million ($3 million) in 2024. According to financial data examined by FED.az, interest income accounted for AZN 5.666 million ($3.33 million), or 98.6% of total revenues.
Commission income reached approximately AZN 23,000 ($13,500), while foreign exchange operations generated AZN 53,000 ($31,200). Despite the increase in revenues, the bank's net profit declined by 42.8% to AZN 4.412 million ($2.60 million), compared with AZN 7.716 million ($4.54 million) in 2024. Its total assets stood at AZN 120.29 million ($70.76 million) at the end of 2025, increasing by approximately 1% year-on-year.
Profitability continues to weaken in 2026 The bank's latest financial results indicate that profitability continued to decline during the first nine months of 2026. Between January and September, the Baku branch recorded net profit of AZN 3.144 million ($1.85 million), down 28.2% from AZN 4.378 million ($2.58 million) during the corresponding period of 2025. Interest income decreased by 8.4% to AZN 3.935 million ($2.31 million), while total assets fell by 5% from the beginning of the year to AZN 114.28 million ($67.22 million).
Extract — continue reading at the source.
