{"id":125541,"date":"2019-11-25T07:51:07","date_gmt":"2019-11-25T07:51:07","guid":{"rendered":"https:\/\/armbanks.am\/2019\/11\/25\/248932\/"},"modified":"2024-12-15T13:39:28","modified_gmt":"2024-12-15T13:39:28","slug":"fitch-ratings-armenian-banking-sector-is-well-capitalised-but-profitibality-is-low","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2019\/11\/25\/125541\/","title":{"rendered":"Fitch Ratings: Armenian banking sector is well-capitalised, but profitibality is low"},"content":{"rendered":"\n<p><strong>YEREVAN, November 25. \/ARKA\/.  <\/strong>The banking sector is well-capitalised but profitability is low and loan growth remains high, at 15.4% yoy at September-end 2019, boosted by mortgage loan and consumer lending, Fitch said in a report.<\/p>\n\n\n\n<p>It said this partly reflected a decrease in the informal economy, higher household real income and increased risk appetite from banks given pressures on profitability. <\/p>\n\n\n\n<p>Asset quality is strong, however, with non-performing loans (from one day past due, as per the CBA classification) accounting for 5% of total loans. Dollarisation is still high at 50% of deposits and credit, despite the recent introduction of targeted macro-prudential measures. <\/p>\n\n\n\n<p>External financing risks are mitigated by the precautionary Stand-By Arrangement of USD248million signed with the IMF in May 2019 and support from official creditors. The government issued a 10-year USD500million Eurobond in September with a 4.2% yield and bought back 80% (USD400million) of the Eurobond maturities coming due next year, hence removing short-term refinancing risk.<\/p>\n\n\n\n<p>According to the central bank of Armenia, the total capital of Armenian banks in the first 9 months of 2019 increased by 6.2% yoy to 818.6 billion drams. Their assets amounted to 5.395 trillion drams, having increased by 8.7% or 432 billion and their overall liabilities amounted to 4.576 trillion drams, having increased by 6.4% or 192.9 billion drams in the third quarter. ($ 1 &#8211; 476.15 drams). -0-<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The banking sector is well-capitalised but profitability is low and loan growth remains high, at 15.4% yoy at September-end 2019, boosted by mortgage loan and consumer lending, Fitch said in a report<\/p>\n","protected":false},"author":1,"featured_media":174386,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[15837,12869,15645,2177,12351],"class_list":{"0":"post-125541","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banks-en-en","8":"category-news","9":"tag-armenia-2","10":"tag-banking-sector","11":"tag-fitch-2","12":"tag-fitch-ratings","13":"tag-ratings"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/125541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=125541"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/125541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/174386"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=125541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=125541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=125541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}