{"id":89852,"date":"2015-07-20T17:02:47","date_gmt":"2015-07-20T17:02:47","guid":{"rendered":"https:\/\/armbanks.am\/2015\/07\/20\/243258\/"},"modified":"2024-12-15T13:19:11","modified_gmt":"2024-12-15T13:19:11","slug":"net-profits-of-armenian-banks-slashed-by-almost-55-in-first-half","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2015\/07\/20\/89852\/","title":{"rendered":"Net profits of Armenian banks slashed by almost 55% in first half"},"content":{"rendered":"<p><strong>YEREVAN, July 20. \/ ARKA \/.<\/strong> Net profits of Armenian commercial banks in the first half of 2015 slashed by almost 55% from the year before to 8.130 billion drams. In the first half of 2014 they posted 17.8 billion drams in net profit, according to ARKA news agency\u2019s Banks of Armenia bulletin for the second quarter.<\/p>\n<p>Out of 21 commercial banks operating in Armenia seven banks closed the first half with a total loss of 8.65 billion drams. In the first six months of 2014 six banks reported total losses of 2.7 billion drams. The decline in bank profits began in the second quarter 2014 and is still ongoing.<\/p>\n<p>Besides, total assets of the banks also saw a drop in the first half of 2015 falling by 3.62% from the beginning of the year to 3.267 trillion drams; the banks\u2019 total liabilities fell by 5.1% to 2.764.3 trillion drams; their credit investments fell by\u00a0 4.53% to 2.069.2 trillion drams and the banks\u2019 liabilities to clients dropped by 1% to 1.678.7 trillion drams. As for the banks\u2019 capital, it increased by 5.4% to 502.6 billion drams.<\/p>\n<p>The drop in the banks\u2019 profits and other key indicators is blamed on the overall economic situation, the regulator\u2019s decision to toughen some of its mandatory requirements and financial market shocks linked with the devaluation of the Armenian dram.<\/p>\n<p>Earlier this month Moody\u2019s said Russia\u2019s recession and the decline in global oil prices will affect banks across six CIS countries in 2015-16.<\/p>\n<p>\u201cWe expect that CIS banks will be affected by lower oil prices and Russia\u2019s recession through pressures on local currencies, declines in remittances from CIS nationals working in Russia, and lower exports from CIS countries to Russia,\u201d Moody\u2019s\u00a0 report entitled \u201cBanks in CIS feel pinch from Russia downturn and low oil prices,\u201d said. Moody\u2019s expects a 3% contraction in Russian GDP this year followed by zero growth in 2016, based on Brent oil prices averaging $60 per barrel in 2015 and $65 next year.<\/p>\n<p>Moody\u2019s report said also\u00a0 banks in Armenia will be moderately affected, reflecting the relatively modest devaluation in the dram, but its highly dollarized banking sector will face increased asset quality pressure if the dram continues to depreciate. \u2013<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Net profits of Armenian commercial banks in the first half of 2015 slashed by almost 55% from the year before to 8.130 billion drams<\/p>\n","protected":false},"author":1,"featured_media":157118,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,9216],"tags":[12163,12299,12610],"class_list":{"0":"post-89852","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-banks","10":"tag-profit","11":"tag-slash"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/89852","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=89852"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/89852\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media\/157118"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=89852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=89852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=89852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}