YEREVAN, October 24. /ARKA/. Armenian banks closed the third quarter of 2016 with a positive dynamics amid active replenishment of their statutory capital, according to ARKA news agency’s quarterly bulletin “Banks of Armenia” for the third quarter.
Thus, their combined capital in the first 9 months of this year grew by 12.8% to 610.3 billion drams, while their authorized capital grew by 11.15% to 383.7 billion drams. Fourteen of the banks increased their total capital, and 5 – their authorized capital.
The top five banks in terms of total capital size were Ameriabank, ACBA-CREDIT AGRICOLE BANK, Ardshinbank, HSBC Bank Armenia and Inecobank. The capital increase was due to active capital replenishment and mergers to meet a Central Bank’s revised statutory capital requirement. As a result, of 21 banks there remain now 19.
In the first half of this year, banks’ assets growth did not exceed 1%, while their liabilities decreased. By the way, last year’s figures were much more disappointing. In particular, the banks’ assets and liabilities in the first three quarters fell by 2-3%.
However, thanks to double-digit growth of their capital in the first 9 months of 2016 Armenian banks managed to secure a more pronounced positive growth rate. In the first 9 months the banks’ aggregate assets saw a 4.2% growth amounting to 3.621.9 trillion drams. Of all commercial banks, only 6 saw their assets decline. The leading banks by size of assets were Ameriabank Ardshinbank, Armbusinessbank, ACBA-CREDIT AGRICOLE BANK and VTB Bank (Armenia).
Credit investments of Armenian banks increased by 5.37% to 2.235 trillion drams. Their liabilities in the first 9 months amounted to 3.011.5 trillion drams, having increased by 2.6%. The top banks in terms of capital were Ameriabank, Ardshinbank, Armbusinessbank, ACBA-CREDIT AGRICOLE BANK and VTB Bank (Armenia). More specifically, their liabilities to customers in the reporting period increased by 5.8% to 1.985.8 trillion drams.
The net profit of commercial banks for the third quarter of 2016 amounted to 16.2 billion drams against 13.1 billion drams in the same period of 2015, an increase of 23.9%. Fourteen banks earned profits and five banks showed losses of about 9 billion drams against 9.9 billion drams losses reported by seven banks in the same period 2015.
In the third quarter the top five most profitable banks were Ameriabank, Ardshinbank, Inecobank, Artsakhbank and Armswissbank. Their combined gain was worth 15.4 billion drams. ($ 1 – 475.26 drams). -0-
