We are presenting to your attention summary of the results of the Armenian banking sector for 1HY-2022, prepared and published exclusively on Banks.am by a specialized consulting company RUMELS Management Solutions.

Ruben Melikyan has more than 22 years’ experience, as a successful c-level executive (CEO/CFO), with a successful track record leading diverse management teams in different areas, like audit, micro-finance, retail, FMCG and banking. Ruben Melikyan is an ACCA member; he graduated from Oxford University (EMBA) and recently received a Certificate on “Advanced Corporate Valuation” from NYU.



The purpose of this study is to analyze the main financial indicators of the Armenian banking system in 1HY of 2022.

Net Profit

The total net profit of all Armenian banks for 1HY of 2022 is equal to 111.2 bln AMD, which is by 70 bln AMD, or by 2.7 times more than it was recorded during 1HY of 2021. The mentioned increase of the net profit is mainly due to a significant increase of the non-interest income (commissions, income from FX conversion, etc.).

The largest profit was recorded by Ardshinbank, which amounts to 20 bln AMD.

Total loan portfolio
 
- The total loan portfolio of the banking sector during 1HY-2022 has decreased by 1%.

- As of 30.06.2022, the total loan portfolio has amounted to 3.958 bln AMD and its share in total assets is 55%.

- The mentioned total loan portfolio includes retail and corporate loan portfolios.

- Market share of largest 5 banks (Ameriabank, Ardshinbank, Armbusinessbank, ACBA Bank and Inecobank) by total loan portfolio, is 60.8%.

- Ameriabank has the largest market share - 17.3%.

Current accounts and deposits from customers

- During 1HY 2022, the total balance of current accounts and deposits of retail and corporate clients of the banking sector has increased by 71 bln AMD or by 1.8%.

- As of 30.06.2022, the total balance of current accounts and deposits of retail and corporate clients has amounted to 3.945 bln AMD and its share in total liabilities is 65%.

Bonds

- During 1HY 2022, the total balance of bonds issued by Armenian banks has decreased by 70 bln AMD, or 16% and amounts to 376 bln AMD.

- This significant decrease is mainly due to the decrease of bond balances of Ardshinbank (48 bln AMD).

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

Total equity

- During 1HY-2022, the total Equity of the Armenian banking sector has increased by 212 bln AMD, or 23% and amounts to 1.139 bln AMD. This significant increase is mainly explained by the increase of the share capital of Armbusinessbank by 128 bln AMD.  The bank’s shareholding has also changed and there are currently two shareholders: MFM Global Invest AG and “Home for youth” Refinancing Credit Organisation Closed JSC with 75% and 25% of shareholding respectively.

- Also, Evocabank has increased its share capital by 3 bln AMD.

- During 1HY-2022, retained earnings (including general reserve) of the Armenian banking sector have increased by 100 bln AMD, or by 30% and amounts to 437 bln AMD.

- Six banks declared dividends during 1HY-2022, amounting to 12.3 bln AMD (Inecobank-6 bln AMD, ACBA Bank-3.3 bln AMD, Ardshinbank-1.1 bln AMD, AEB-930 mln AMD, Converse Bank-510 mln AMD and Unibank-464 mln AMD).

- Revaluation reserves have decreased by 19 bln AMD or 70%.

Full version of the analysis of the Armenian banking sector results for 1HY-2022 is available on this link.

Full version of the analysis of the Armenian banking sector results for 1Q-2022 is available on this link.

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