Armenian commercial banks’ loans and deposits grew in August, mainly due to dram funds – WB

YEREVAN, October 23. /ARKA/. In August, commercial bank deposits and loans increased 0.3 percent (mom) and 3 percent (mom), respectively, primarily fueled by AMD denominated funds. Compared with 2023, exchange rate adjusted deposits increased by 9.9 percent (yoy) in August, whereas credits grew by 19.9 percent (yoy).

This raised the loan-to-deposit ratio from 0.89 percent at end-August 2023 to 0.93 at end-August 2024, still below 1 percent. Financial indicators remained robust, with CAR holding steady at 20.3 percent, similar to July. The NPL ratio remained low at 1.3 percent, while return on assets reached 4.6 percent, both 0.1 percentage points higher than in July

According to the Central Bank of Armenia, the total volume of deposits attracted by commercial banks of Armenia in August of this year amounted to 5.91 trillion drams against 5.89 trillion drams in July of the same year and 5.35 trillion drams in August 2023. The volume of loans issued by commercial banks of Armenia in August amounted to 5.75 trillion drams against 5.58 trillion drams in July of the same year and 4.76 trillion drams in August 2023. ($1 – 387.21 drams). -0-