Some key indicators of Armenian banks characterizing financial stability saw a drop in 2018 April

YEREVAN, May 24. /ARKA/. Some of the key indicators characterizing the performance of Armenian commercial banks and their financial stability saw a drop in 2018 April as opposed to the previous month, according to data, provided by the Central Bank of Armenia.

Thus, the indicator of the banking sector’s total liquidity (highly liquid assets / total assets) in April was 29.9%, having decreased by 0.9 percentage points from the previous month. At the same time, the current liquidity indicator (highly liquid assets / demand liabilities) decreased by 6.6 percentage points to 142.1%.

The capital adequacy ratio of the banking sector in April decreased by 0.4 percentage points to 18.3% (the standard figure is 12%).

In the reporting month, the return on equity (ROE) index also decreased by 0.2 pp. to 8.5%, while the return on assets (ROA) indicator did not change, staying at 1.4%.

Also, in April 2018, the share of non-performing loans in the loan portfolio grew by 1.2 percentage points from the previous month to 6.6%.

According to the latest data of the Central Bank, the assets of the banking sector at the end of March 2018 stood at 4.434.3 trillion drams (an increase of 2.6%), their liabilities – at 3.718.3 trillion drams (an increase of 3.1%), and their capital was worth 715.9 billion drams (an increase of 0.3%). ($ 1 – 482.48 drams). -0-

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