Ratio of loans to deposits in commercial banks of Armenia has improved – WB review

YEREVAN, June 26. /ARKA/. In April 2025, deposits and loans of commercial banks of Armenia increased by 1.5% y/y and 0.8% y/y, respectively, slightly improving the ratio of loans to deposits compared to the figures for the previous year. This is stated in the June review of the World Bank “Armenia Monthly Economic Update”.

The study indicates that the growth of deposits was due to funds denominated in foreign currency, and the growth of loans – loans in Armenian drams. “The annual growth of total deposits, adjusted for the exchange rate, amounted to 15.1% y/y, while the growth of loans amounted to 28.4% y/y,” the report says.

According to the authors of the study, financial indicators remained stable in May: the capital adequacy ratio (CAR) was 20%, the non-performing loan ratio (NPL) was low – 1.5%, and the return on assets (ROA) was 3.4%.

According to the Central Bank of Armenia, at the end of April 2025, commercial banks’ credit investments amounted to almost 6 trillion 905.6 billion drams, and deposits – about 6 trillion 596 billion drams. ($1 – 385.29 drams). 

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