YEREVAN, June 11. /ARКА/. High profitability was recorded in the banking system of Armenia at the end of 2024, which was facilitated by growth in net interest income and low level of credit losses, said Martin Galstyan, Chairman of the Central Bank of the Republic, presenting the financial stability report for 2024.
According to him, the growth in interest income, on the one hand, was due to structural changes in the balance sheet of banks, in particular, high growth in consumer loans, which have a high yield, and on the other hand, an increase in the share of drams in the loan portfolio, as well as a gradual increase in the share of demand funds in the deposit structure in recent years.
“The relatively high interest rate environment in foreign markets also had a certain impact,” Galstyan said.
The head of the Central Bank noted that the banking system is highly capitalized and quite liquid.
“The capital adequacy and liquidity indicators of the banking system remained above the minimum thresholds set by the regulator throughout the year, which indicates the high capacity of the banking system to absorb potential losses,” he explained.
Galstyan also added that the improvement in capital and liquidity positions was largely due to both the gradual implementation of the buffers provided by the regulator and the formation of additional reserves by banks in excess of the established requirements “both as a result of our prudential measures and due to the banks’ own actions.”
According to the ranking of the ARKA news agency, compiled based on the reports of Armenian banks, the net profit of the banking system of Armenia in 2024 amounted to more than 363.1 billion drams, increasing by 60.9% compared to 2023. According to the results of 2024, all 17 banks operating in Armenia ended the year with a profit, while the profit of 15 banks increased by 80.5% compared to the previous year, and decreased by 0.7% for two banks. -0-
