YEREVAN, April 27. /ARKA/. The week in Armenia’s financial market was marked by the publication of financial indicators for the banking sector, updated macroeconomic indicators, and signals regarding capital market development. The agenda included data on bank profits, international reserves, inflation, and tax revenues from the sector. Special attention was paid to strategic targets for market capitalization and the expansion of financial instruments.
1. Banking sector: net profit increased to 103.5 billion drams
Armenian banks’ net profit for the first quarter of 2026 amounted to 103.5 billion drams, an increase of 2.3% year-on-year, according to a bulletin published by ARKA news agency on April 20 based on Armenian banks’ reports.
This indicator remains a key benchmark for assessing bank performance and the sustainability of their business models, and in practice, may indicate the banks’ continued ability to generate internal capital, which is important for continued lending, compliance with regulations, and risk coverage.
2. International Reserves: Import Coverage Reached 4.1 Months
Armenia’s gross international reserves increased to $5.5 billion in March 2026, providing import coverage of 4.1 months, according to the World Bank’s “Armenia Monthly Economic Update – April 2026” published last week.
This signal could support financial system stability and create conditions for the foreign exchange market to function without sharp imbalances.
3. Foreign Exchange Market: Dram Maintained a Moderate Fluctuation Range
According to the Central Bank, on April 20, the dollar exchange rate was 372.85 drams, the euro 438.88 drams, and the ruble 4.9588 drams. By April 23, the dollar had fallen to 371.83 drams, the euro to 434.37 drams, and the ruble to 4.9452 drams.
The foreign exchange market saw a gradual decline in the dollar and a sharp decline in the euro last week. This dynamic could maintain the functioning of the foreign exchange market, where currency risk management is key.
4. Capital Market: Targeting Doubling to 1.3 Trillion AMD
Armenian authorities expect the capital market to increase in value to 1.3 trillion AMD by 2031, Prime Minister Nikol Pashinyan announced on April 22.
This target could set an institutional framework for banks, investment companies, and issuers in terms of long-term planning for entering the capital market and raising financing.
5. Banking Sector and Budget: Payments Reached AMD 28.65 Billion
All 17 commercial banks in Armenia transferred AMD 28.65 billion to the state budget in the first quarter of 2026, according to a report on payments by the 1,000 largest taxpayers published on the State Revenue Committee’s website.
This demonstrates the banking system’s role as a significant source of budget revenue and an element of macrofinancial balance.
6. Inflation: Food Accounted for 68% of Price Increase
According to the World Bank’s “Armenia Monthly Economic Update – March 2026,” food and non-alcoholic beverages accounted for 68% of March inflation in Armenia.
Since the food component directly impacts the consumer basket, this may, in practice, impact consumer demand, household spending patterns, and financial institutions’ assessments of inflation.
7. Financial Products and Infrastructure: Bonds, Cards, and Payments
On April 20, Unibank announced the placement of $5 million in dollar bonds with a yield of 5.6% per annum and a maturity of 36 months. On the same day, Akba Bank introduced two premium Mastercard cards—World and World Elite. Also on April 20, VTB (Armenia) announced expanded payment options for Russian tourists through the development of its acquiring and digital infrastructure.
These new instruments are aimed at investors, retail clients, and tourists. These developments could increase competition between banks, expand client access to financial instruments, and support a cashless economy.
Weekly Summary
This week demonstrated that Armenia’s financial market is operating in a balancing act between macroeconomic indicators and the development of financial instruments. Key signals are generated by data on bank profits, the level of international reserves, and the inflation structure.
The primary focus is shifting to the stability of the banking sector, the role of external reserves in maintaining stability, and the institutional development of the capital market. Bank product solutions and the development of payment infrastructure are gaining additional significance as elements of the financial market.
