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Zardusht Alizadeh: Arriving in Sochi, Aliyev and Sargsyan once again demonstrated the world that Russia is still the demiurge in the Caucasus

Masis Mailyan: Unlike Azerbaijan, global centers of force are not interested in growing tensions in Nagorno-Karabakh conflict zone

Sergey Grinyayev:The West’s sanctions are extremely positive for the Eurasian Union project

Alexey Kolomiyets: West's sanction will hardly sober Putin and the Kremlin

Hrant Bagratyan: Sanctions will have tangible impact on Armenia

Georgi Kolarov: The second Nagorno-Karabakh war is inevitable

Artashes Shaboyan: Reduction in consumer demand has a negative effect on supermarkets

Tigran Davtyan: If you have a telephone with you, it means that you have a wallet with you too

Shmuel Meirom: Israel is willing to contribute of its experience in the field of economy, but it cannot force Israeli business to invest in Armenia

Marine Karapetyan: Ameriabank on large business: problems and solutions

Eduard Sharmazanov: The opposition camp has no leader to steer the people

Alexander Zinker: Readiness of the Kremlin to protect its “Big Russian world” is dangerous for Russia itself

Vahe Davtyan: lternative power engineering should be developed regardless of fluctuations in electric power tariffs

Alexander Krylov: Taking into consideration the experience of the EU, Russia has to refuse maximal extension of the Eurasian Economic Union

Rasim Musabekov: Not only global but also the regional geo-political balance is changing

Zardusht Alizade: Apart, Armenia and Azerbaijan will always remain non-democratic fascist states

In Q1 2014 net profit of Armenia's banking system dropped by 28.5%

  • by Karina Melikyan

  • Friday, April 25, 14:07

 In Q1 2014 the net profit of Armenia's banking system dropped by 28.5% to 9.1bln AMD or $22mln. As compared with Q1 2013, the index grew by 6.7%.

According to the Express Ranking of Armenian Banks prepared by the Agency of Rating Marketing Information (ArmInfo), in Q1 2013 the index dropped by 37.3% due to slowdown in lending and the CB's decision to write off non-performing loans. 

Likewise, this year's drop may have also been caused by declining lending activities. Unfortunately, the banks have not yet specified their lending risks, so, it is yet clear why the profit has dropped.  In Q1 2014 the loans of Armenia's banks grew by 2.1% to 1.8tln AMD or $4.4bl. As compared with Q1 2013 they grew by 11.4%. Nostro account balance shrank by 10.1% in Q1 2014 and by 23.7% as compared with Q1 2013 to 227.6bln AMND or $550.7mln. Investments in securities grew by 9.1% and 20%, respectively, to 225.5bln AMD or $545.6mln. Assets dropped by 0.2% and grew by 14.4% to 2.9tln AMD or $7.1bln. Loans made up 61.4% of assets, nostro accounts 7.8%, investments in securities 7.7% against respective 63.1%, 7.2% and 7.3% in Q1 2013.

In Q1 2014 the obligations of Armenia's banks dropped by 0.8% to 2.5tln AMD or $5.9bln. As compared with Q1 2013 they grew by 14.2%. 

The total capital grew by 2.5% in Q1 2014 and by 15.3% as compared with Q1 2013 to 481.6bln AMD or $1.2bln. Accumulated profit grew by 5% and 26.4%, respectively, to 170.2bln AMD, authorized capital by 2.7% and 7.5%, respectively, to 262.5bln AMD. In Q1 2014 only VTB Bank (Armenia) increased its capital (by 50.3%) due to issue of 7bln AMD worth of shares.  

HSBC Bank Armenia, Ardshininvestbank and Ameriabank registered the biggest net profits, ACBA-Credit Agricole Bank, VTB Bank (Armenia) and Ardshininvestbank the biggest capitals, Ameriabank, VTB Bank (Armenia) and Ardshininvestbank the biggest assets, VTB Bank (Armenia), ACBA- Credit Agricole Bank and Ameriabank the biggest loan books, HSBC Bank Armenia, Armswissbank and Armbusinessbank the biggest investments in securities, Ameriabank, Ardshininvestbank and VTB Bank (Armenia) the biggest obligations.

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