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S&P: Azerbaijan's operatives' expenses of banks to increase by 10%

13 February 2023 15:43 (UTC +04:00)

S&P Global Ratings International agency predicts an increase in operatives' expenses of banks not less than 10% in 2023 in the countries of Central Asia and the Caucasus, including Azerbaijan, APA-Econommics reports.

According to S&P, increase in operatives' expenses of banks in Azerbaijan, Georgia, Armenia, Kazakhstan and Uzbekistan is due to persistently high inflation, continued significant investments in digitization, high competition, which requires marketing expenses, and commoditization of banking products.

It is noted that IT-related expenses in 2023 are likely to make up an average of 15-17% of the total operating expenses of banks in the region and will still exceed the corresponding cost savings, which is explained by the hiring of IT specialists, investments in software and hardware, payments to IT suppliers and to consultants, expenses for protection of data and cyber security.