Armenian banks’ loan portfolio in the first half of the year amounted to 8.8 trillion drams, up 11.5% – Union of Banks

YEREVAN, August 4. /ARKA/. The loan portfolio of Armenian banks in the first half of 2026 amounted to 8.8 trillion drams, up 11.5%, reported Daniel Azatyan, head of the Union of Banks of the Republic.

According to the Union of Banks, consumer loans (2.01 trillion drams) and mortgage loans (1.79 trillion drams) accounted for the largest combined share of the banks’ loan portfolio – 43.2%, compared to 44.5% in 2025.

Construction loans (AMD 952.04 billion) account for 10.8% of the loan portfolio, followed by loans to the service sector (AMD 911.45 billion) – 10.4%, trade loans (AMD 772.24 billion) – 8.8%, production loans (AMD 747.29 billion) – 8.5%, and agricultural loans (AMD 450.79 billion) – 5.1%.

Consumer loans recorded the highest growth rate over the first half of the year, at 13.1%. Agricultural loans were second in terms of growth (11.5%), followed by construction loans (10.7%). Service sector loans grew by 7.4%, mortgage loans by 7.7%, trade loans by 5.6%, and production loans by 2.6%.

Moreover, 8.1% of the banks’ loan portfolio growth was driven by retail loans, and 10.4% by corporate loans; their respective shares in the overall structure are 49% and 46%.

“The credit burden of individuals has consistently been around 50%, and now, despite the growth of consumer loans, we are seeing a certain easing of the burden—around 0.5%. The positive sign here is that if consumer loans are growing, but the credit burden of individuals is declining, this means that other loans, particularly corporate loans, agricultural loans, and other loans, are growing faster overall,” Azatyan explained. Moreover, the interest rate on dram-denominated loans to individuals with terms of 1-5 years decreased by 0.4% in June 2026 compared to December 2025, while the rate on dram-denominated deposits for individuals with terms of 1-5 years remained unchanged at 9.5%. The margin between interest rates on dram-denominated loans and deposits was 7.2%, a decrease of 0.4% compared to December 2025.

At the same time, the interest rate on dollar-denominated loans to individuals with terms of 1-5 years increased by 0.3% in June 2026 compared to December 2025, while the rate on dollar-denominated deposits for individuals with terms of 1-5 years increased by 0.1% to 4.1%. The margin between rates on dollar loans and deposits was 5.3%, an increase of 0.4% compared to December 2025.

The share of dram loans in the total portfolio was 65% at the end of June, compared to 66% in 2025, while the share of dollar loans was 35%, compared to 34% in 2025. The picture is different for deposits: the share of dram deposits increased to 58% at the end of the first half of 2026, from 56% in 2025, while the share of dollar deposits decreased to 42% from 44%. ($1 = 367.01 dram)

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