YEREVAN, February 14. /ARKA/. The quality of the loan portfolio of Armenian banks has improved due to a decrease in the share of problem debt from 2.4% to 1.2%, according to the regional economic review of the Eurasian Fund for Stabilization and Development (EFSD) “Winter 2024–2025.”
“The key financial indicators of the banking system have improved. As of September 2024, compared to December 2023, the return on assets increased from 2.7% to 4.5%, and the return on equity increased from 17.4% to 28.3%.
The growth in these indicators was driven by an increase in interest income resulting from the growth of lending. There was also an increase in the spread between the average weighted interest rates on loans and deposits,” the study notes.
According to ARKA news agency data based on the reports of Armenian banks published in accordance with IFRS, the net profit of Armenia’s banking system in 2024 amounted to over 363.1 billion drams, marking a 60.9% increase compared to 2023.
The total assets of Armenian banks as of December 31, 2024, amounted to 11.023 trillion drams (a 20.1% increase compared to the beginning of the year). The volume of credit investments, net of reserves, amounted to 6.270 trillion drams, an increase of 24.6% since the start of the year.
Total liabilities in 2024 grew by 20% to 9.243 trillion drams, with liabilities to customers reaching 6.431 trillion drams, a 16.6% increase compared to the start of the year. The total capital of Armenian banks amounted to 1,779.3 trillion drams, increasing by 20.5% since the beginning of the year. ($1 = 396.42 drams)
