We are presenting to your attention summary results of the Armenian banking sector for 1HY 2021, prepared and published exclusively on Banks.am by a specialized consulting company RUMELS Management Solutions.

RUMELS Management Solutions is a specialized consulting company. The company was founded by Ruben Melikyan in 2013. For the past 15 years, Ruben Melikyan has occupied responsible management positions in companies operating in different spheres, thus gaining experience in various sectors of the economy such as internal and external audit, retail and wholesale trade, mining industry and banking system. R. Melikyan is a full member of ACCA and an Oxford University graduate (Executive MBA).

Net Profit

- Total net profit of all Armenian banks for 1HY-2021 is equal to 40.7 bln AMD, which is almost the same (+0.1%), as in 1HY-2020.

- Expenses related to loan loss provisioning have increased during the mentioned period by 6 bln AMD or by 17%.

Total loan portfolio

- Total loan portfolio of the banking sector during 1HY-2021 has decreased by 3.1%.

- As of 30.06.2021, total loan portfolio has amounted to 3.922 bln AMD and its share in total assets is 58%.

- Mentioned total loan portfolio includes retail and corporate loan portfolios.

- Market share of largest 5 banks (Ameriabank, Armbusinessbank, Ardshinbank, ACBA Bank and Converse Bank) by total loan portfolio, is 62%.

- Market share of largest 3 banks (Ameriabank, Armbusinessbank and Ardshinbank) by total loan portfolio, is 48%.

- Ameriabank has the largest market share - 17.4%.

Current accounts and deposits from customers

- During 1HY-2021, total balance of current accounts and deposits of retail and corporate clients of the banking sector has increased by 43 bln AMD or by 1.2%.

- As of 30.06.2021, total balance of current accounts and deposits of retail and corporate clients has amounted to 3.614 bln AMD and its share in total liabilities is 62%.

Bonds

- During 1HY-2021, total balance of bonds issued by Armenian banks has increased by 16 bln AMD, or 4%.

- In 1HY-2021, Evocabank also started issuing bonds.

- Currently, 12 from total 17 banks are issuing bonds. The majority of bonds are listed on the Armenian Stock Exchange.

Total equity

- During 1HY-2021, total equity of the Armenian banking sector has increased by 35 bln AMD, or 4% and amounts to 915 bln AMD.

- Major component of total equity of the Armenian banking sector is Share Capital (including share premium), with the share of 61% and amounts to 554 bln AMD as of 30.06.2021.

Share capital (including share premium) has increased by 20.4 AMD (ACBA Bank - 20 bln AMD (from retained earnings), AEB - 261.4 mln AMD and Ameriabank - 108.4 mln AMD).

- Second largest component - Retained Earnings (including general reserve) with the share of 35% and amounts to 322 bln AMD as of 30.06.2021.

Four banks declared dividends in 1HY-2021, amounting to 10.9 mln AMD (Inecobank - 7.5 bln AMD, ACBA Bank - 2.5 bln AMD, AEB - 822 mln AMD and Ardshinbank - 89 mln AMD).

- Revaluation Reserves (mainly PPE and Financial Assets revaluation reserves) have share of 4% and amount to 39 bln AMD as of 30.06.2021. Revaluation reserves have decreased by 5.7 bln AMD or 13%.

Full version of the analysis of the Armenian banking sector results for 1HY 2021 is available on this link.

Full version of the analysis of the Armenian banking sector results for 1Q 2021 is available on this link.

Full version of the analysis of the loan portfolio of the Armenian banking system 2019-2020 is available on this link.

Full version of the analysis of the profitability level of the Armenian banking system 2019-2020 is available on this link.