YEREVAN, November 8. /ARKA/. Despite the differences, Georgia’s financial and banking systems are very similar in their indicators to those of Armenia, said Daniel Azatyan, Chairman of the Union of Banks of Armenia (UBA).
According to a comparative analysis of the profitability of the banking systems of Armenia and Georgia, published by the UBA at the end of October based on data for the first half of the current year, the return on equity (ROE – the ratio of profit to equity) of Armenia’s banking system was 21.9% (y/y), while that of Georgia was 23.5%.
“We have 18 commercial banks, they have 17; GDP, population, and economic growth are very similar, so this study is comparable. If we were to take a European country, where banks have a global presence, the indicators might differ slightly. Both the financial and banking systems of Georgia, considering the differences, are very similar to ours in terms of their indicators,” said Azatyan, responding to a question from the ARKA agency on the sidelines of the banking forum ‘Regional Challenges and Opportunities in Cooperation with European Banks.
The comparative analysis by the UBA was conducted based on data from the official websites of banks in Armenia and Georgia. The corresponding indicators for Georgia are presented in drams.
According to the UBA analysis, the average capital of all 18 commercial banks in Armenia for the first half of 2024 was 1.6 trillion drams, with a profit of 172.1 billion drams for the same period. Meanwhile, the average capital of 16 banks in Georgia for the reporting period was 1.8 trillion drams, with a profit of 215.9 billion drams. ($1 = 387.23 drams). -0-
