YEREVAN, June 24. /ARKA/. The idea of excess profits in the Armenian banking system is unfounded, and banks themselves remain one of the most transparent sectors of the country’s economy. This was stated by Martin Galstyan, Chairman of the Central Bank of Armenia, on Public Television.
According to him, the profitability of Armenian banks is generally comparable to that of other countries in the region.
“If we look at the profitability of our banking system and that of other countries in the region, they are no different; in other places, it’s even higher. This idea of excess profits was artificially introduced into the discourse because I haven’t seen any clear explanation that would prove that we are talking about excess profits, and not just high profit margins,” Galstyan said. He recalled that after 2022, Armenian banks received an additional boost from the influx of capital and servicing non-residents, which effectively led to the export of financial services.
“As a result of servicing non-residents, which hadn’t happened before, we began exporting services. By exporting services, banks generated additional profits, from which they paid significant tax revenues to the state budget,” the head of the Central Bank noted.
Commenting on the notion that banks earn excess profits compared to other sectors of the Armenian economy, Galstyan stated that he does not share this assessment.
“I haven’t seen this either. If you compare the banking system with the construction business, certain industries, or trade, I’m not sure that such a comparison is accurate,” he said.
The head of the regulator emphasized that the banking system is probably the most transparent sector of the Armenian economy.
“All banks are audited by the best international audit firms; they are transparent. “I haven’t heard from colleagues, for example from tax authorities, about any problems related to shadow banking activities,” Galstyan noted.
According to ARKA’s ranking of Armenian banks’ reports published in accordance with international IFRS standards, the net profit of the Armenian banking system in 2025 amounted to 421.3 billion drams, an increase of 16.01% compared to 2024.
On June 18, the Armenian Parliament adopted in the first reading amendments to the Tax Code and the RA Law “On State Duty.” These amendments propose increasing the tax rate on dividends paid by banks to individuals and organizations to 15%, from the current standard rate of 5%, effective January 1, 2027.
