Armenian banks’ return on equity in 2023 dropped to 13.5% – Central Bank governor

YEREVAN, January 31. /ARKA/. In 2022 the return on equity (ROE) of Armenia’s banking sector was 21.7%, while in 2023 it dropped to 13.5%, Chairman of the Central Bank Martin Galstyan said Tuesday.

“In 2019, 2020 and 2021, ROE was 7-8%, so we are still at a rather high level compared to the historical ROE,” he told a press conference.

According to Galstyan, banks have made significant investments in technology and staff in order to be able to serve international visitors.

“According to my estimates, banks will return to their core banking business at some point in time, i.e. non-interest income will account for a smaller share of their profits,” he said.  

According to the regulator, the undistributed accumulated profit of the Armenian banks at the end of December 2023 stood at AMD 176.7 billion against AMD 238.3 billion at the end of December 2022. Their total capital amounted to AMD 1.4 trillion against AMD 1.2 trillion at the end of 2022. ($1 – AMD 403.96) -0-.

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