We are presenting to your attention the summary of results of the Armenian banking sector for 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 22 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. Ruben Melikyan is a full member of ACCA and an Oxford University graduate (Executive MBA).



The purpose of this study is to analyze the main financial indicators of the Armenian banking system in 2021.

Net Profit

- The total net profit of all Armenian banks in 2021 (unaudited) was equal to 87 bln AMD, which is 33 bln AMD or 62% more than it was recorded during 2020.

- Allocations to loan loss provisions in 2021 were less by 56 bln AMD or 47% than in 2020.

- All the banks have generated profits in 2021, and three banks (Ameriabank, Ardshinbank and Acba bank) generated more than 50% of the total net profit of the Armenian banking sector.

- ROAE of the banking sector increased by 51% (from 6.3% to 9.5%) during 2021 and reached the results of 2019.

- Equity of the banking sector increased by 8.8% during 2021 and amounts to 958 bln AMD as of 31.12.21.

- All the Armenian banks had positive ROAE in 2021.

Total loan portfolio

- The total loan portfolio of the banking sector during 2021 has decreased insignificantly by 0.47%.

- As of 31.12.2021, the total loan portfolio amounts to 4.027 bln AMD and its share in total assets is 57%.

- The market share of 5 largest banks (Ameriabank, Armbusinessbank, Ardshinbank, Acba bank and Converse bank) by total loan portfolio is 61%.

- Ameriabank has the largest market share - 16.7%.

Current accounts and deposits of customers

- During 2021, the total balance of current accounts and deposits of retail and corporate clients of the banking sector increased by 298 bln AMD or by 8.4%.

- As of 31.12.2021, the total balance of current accounts and deposits of retail and corporate clients amounts to 3.869 bln AMD and its share in total liabilities is 63%.

Bonds

- During 2021, the total balance of bonds issued by Armenian banks increased by 14.6 bln AMD, or 3.4% and amounts to 446 bln AMD.

- Currently, 12 out of 17 banks, issued bonds. The majority of the bonds are listed on the Armenian Stock Exchange.

Total equity

- During 2021, the total equity of the Armenian banking sector increased by 78 bln AMD, or 9% and amounts to 958 bln AMD.

- The major component of the total equity of the Armenian banking sector is the Share Capital (including share premium), with the share of 59% and amounts to 563 bln AMD as of 31.12.2021.

- The second largest component is the Retained Earnings (including general reserve) with the share of 38% and amounts to 370 bln AMD as of 31.12.2021.

- Six banks declared dividends during 2021, amounting to 12.4 bln AMD (Inecobank - 7.5 bln AMD, Acba bank - 2.5 bln AMD, AEB - 1.27 bln AMD, Evocabank - 571 mln AMD, Unibank - 412 mln AMD and Ardshinbank - 170 mln AMD).

- Revaluation Reserves (mainly PPE and Financial Assets revaluation reserves) have a share of 3% and amount to 25.6 bln AMD as of 31.12.2021. During 2021, they decreased by 43%.

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

Full version of the analysis of Armenian banking sector results for 9 months of 2021 is available on this link.

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

Full version of the analysis of 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 for 2019-2020 is available on this link.

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