YEREVAN, July 22. / ARKA /. ARKA news agency has released a recurrent ranking of Armenian banks in terms of net profit earned in the first half of 2015. Net profits of 21 commercial banks operating in the country, earned in the first six months of this year amounted to about 8.1 billion drams, a 54.37% drop from the same period last year. Of 21 banks profits were reported by only 14 banks.
The other seven banks reported a total of 8.65 billion drams losses. In the first six months of 2014 some losses were reported by six banks worth 2.7 billion drams. Incidentally, the decline trend had emerged in the second quarter of 2014.
The top five most profitable banks in the first half were HSBC Bank Armenia, Ameriabank, Inecobank, Armbusinessbank and Ardshinbank with aggregate profit of 11.8 billion drams.
HSBC Bank Armenia’s net profit for the reported period amounted to 3.65 billion drams, a 6.68% rise from the same time span of 2014. Ameriabank’s profits increased by 4.66% to 3 billion drams, Inecobank that came in third, posted 2 billion drams in net profit, a 4.52% decline.
Armbusinessbank’s net profit stood at 1.54 billion drams, a 24.56% year-on-year drop. Ardshinbank reported a 46.14% decrease in net profit to 1.5 billion drams.
Losses were posted by the Armenian Development Bank – 46.8 million drams; Armeconombank – 81.1 million drams; Byblos Bank Armenia – 502.3 million drams; Anelik Bank – 902.4 million drams, Areximbank- Gazprombank Group – 1.156.2 billion drams; VTB Bank (Armenia) – 1.2 billion drams and Artsakhbank – 4.753 billion drams.
The banks’ total assets also decreased by 3.62% from the beginning of the year to 3.267 trillion drams; their liabilities fell by 5.1% to 2.764.3 trillion drams; their credit investments fell by 4.53% to 2.069.2 trillion drams and their liabilities to customers fell by 1% to 1.678.7 trillion drams.
The drop in profits and in other key indicators is blamed on the banks’ build-up of reserves for possible losses on loans, the overall economic situation, toughened standards introduced by the regulator and the devaluation of the national currency.
The ranking was compiled based on ARKA news agency’s bulletin ‘Banks of Armenia.’ To purchase this bulletin and other information products of the agency, please contact the marketing department (e-mail: [email protected]). -0-
