by Erik Abrahamyan
HSBC Bank Armenia, Ardshininvestbank and Ameriabank are still Top 3 banks of Armenia by net profits for 2013: 8 bln drams ($19.7 mln), 6.5 bln drams ($16 mln), and 6.2 bln drams ($15.2 mln), respectively. ACBA-Credit Aghricole Bank is on the 4th position with 5,1 bln drams net profits and INECOBANK ranks the 5th with 4.893 bln drams. VTB Bank (Armenia) is on the 6th position with an insignificant different - 4.891 bln drams.
According to the Analysis and Financial Ranking of Armenian Banks prepared by ArmInfo News Agency, Top 2 banks by the return on assets (ROA) are INECOBANK - 4.18%, HSBC Bank Armenia - 3.53% and ArmSwissbank - 3.52%. Then goes Ardshininvestbank with 2.86% forcing ARARARTBANK to the 6th position with 2.63%. The first two places in the Top 5 banks by return on equity (ROE) still belong to INECOBANK (25.16%) and HSBC Bank Armenia (20.15%).
Ardshininvestbank ranks the third (17.36%) forcing ARARATBANK to the fourth place with 17.29%. In fact, Ameriabank were down to the 56h position (16.10%).
Retained profits of Armenian banks for 2013 totaled 48 bln drams ($118.4 mln), growing 21.9% versus 2012 and falling 13.4% for Q4 2013 versus 18.4% growth for Q3. By the balance sheets of 21 operating banks, 19 out of total number of banks ensured 49.8 bln drams total profits for 2013, amid 1.8 bln drams loss of the remaining 2 banks. Retained profits of 8 banks suffered decline for 2013. This indicator of Byblos Bank Armenia fell nearly 4-fold to a negative level. Meanwhile Anelik Bank's negative retained profits are even higher in absolute terms. The bank plans to zero its losses and end up with profits in 2014.
Armbusinessbank took the leadership position by the annual growth of retained profits (4-fold) ending up with profits, due to increased investments in government bonds (21.7%) amid 2.3% growth of the loan book. Converse Bank, Armeconomibank and ProCredit Bank go the next by the annual growth of retained profits (over twofold). The latter went up with profits due to a 29.1% growth of the loan book. Converse Bank increased lending by 25.8% and investments in government bonds by 47%. Ameriabank increased investments in government bonds over threefold, funds on nostro-accounts by 88.8% and the loan book by 11.5%.
Total capital of the country's banking system for 2013 grew 16.7% and 5.9% for Q4 2013 (4.2% in Q3) to 471.2 bln drams ($1.2 bln) as of Dec 31 2013. The annual growth of total capital resulted from a 4,7% growth of the statutory capital (following capitalization of four bank, including 2 in Q3 and the other 2 in Q4), and a 42.7% growth of the revaluation reserve. Particularly, the following banks replenished their statutory capitals for 2013: ProCredit Bank (Q3, 33.4% - issue of shares), Arexibank-GPB Group (Q3, 14.9%, investments by the sols shareholder -GPB), Unibank (Q4, 14.9%, a growth in the share of the majority shareholder Ripatonso Holdings Ltd from 75.44% to 100%), and ArmSwissbank (Q4, 44.3%, acquisition of a 20% shares in the bank by Belegingsmachepij Jongo LLC, though Vardan Simarkes is the indirect shareholder of the bank - 100%).
ACBA-Credit Agricole Bank took the leadership position by the statutory capital in July 2011 and retained its position till 1 Jan 2013 - 30 bln drams. The bank capitalized most of its profits and share capital in Q2 2011 forcing Ameribank to the second place. Ameribank had been on the first place by this indicator in the period from Q4 2008 up to June 2011 with 25.5 bln drams (without annual changes, and including the merger with Cascade Bank in June 2010). The third position belongs to HSBC Bank Armenia - 18.4 bln drams (due to capitalization in Q3 2012 at the expense of profit). The bank forced Armbusinessbank to the 4th position with 17.5 bln drams (capitalization in Q4 2011 through additional issue of shares). Areximbank-GPB Group tanks the 5th with 16.5 bln drams statutory capital (capitalization in Q3 2013). Top 5 banks by total capital as of Jan 2014 are ABCA-Credit Agricole Bank - 54.3 bln drams (up 11.1% versus Jan 1 2013), Ardshininvestbank - 44.2 bln drams (up 23.4%), HSBC Bank Armenia - 41.3 bln drams (up 16,3%), Ameriabank - 38.8 bln drams (up 5.5%), and VTb Bank (Armenia) - 37.5 bln drams (23.8%).
Assets of the banking system grew 22.8% for 2013 and 8.1% for Q4 2013 versus 2.9% in Q3 2013, totaling 2.9 trillion drams ($7.3 bln) as of Dec 31 2013. Assets grew ion 2013 as the funds on bank correspondent accounts (nostro) grew 36.5% (exclusive of Ameribank's big amount, the growth was insignificant), portfolio of government bonds grew 15.4%, lending grew 14,4% and disposable funds - 13.9%. Top five banks by assets are Ameriabank - 315.1 bln drams (28.6% growth for 2013), VTB Bank (Armenia) - 299.7 bln drams (41.8% growth), Ardshininvestbank - 270.9 bln drams (36.4% growth), ACBA-Credit Agricole Bank - 267.8 bln drams (8.3% growth), and HSBC Bank Armenia - 249.4 bln drams (17.9% growth).