We are presenting to your attention summary of the results of the Armenian banking sector for 1Q 2023, prepared and published exclusively on Banks.am by a specialized consulting company RUMELS Management Solutions.

Ruben Melikyan has more than 23 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 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 during 1Q of 2023.

Net Profit

The total net profit of all Armenian banks for 1Q-2023 is equal to 70 bln AMD, which is by 37.5 bln AMD, or by more than 2 times more than it was recorded in 1Q-2022.

The largest profit was recorded by Ardshinbank, amounting to 16.7 bln AMD.

If during next quarters, the profitability level of Armenian banking sector will be similar to this one, then it’s likely, that the profitability of Armenian banking sector in 2023 will be similar to the highest results recorded in 2022.

Total loan portfolio
 
The total loan portfolio of the banking sector during 1Q-2023 increased by 3.4%.

As of 31.03.2023, the total loan portfolio amounted to 4.314 bln AMD and its share in total assets is 51%.

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

Market share of 5 largest banks (Ameriabank, Ardshinbank, Armbusinessbank, ACBA bank and Inecobank) by total loan portfolio is 60.1%.

Ameriabank has the largest market share – 18.2%.

Bonds

During 1Q-2023, the total balance of bonds issued by Armenian banks increased by 12 bln AMD, or 3.4%.

As of 31.03.2023, total balance of issued bonds is amounting to 357 bln AMD.

13 out of 18 banks issued bonds.

Total equity

During 1Q-2023, the total equity of the Armenian banking sector increased by 56 bln AMD, or 4.2% and amounted to 1.371 bln AMD.

During 1Q-2023, retained earnings (including general reserve) of the Armenian banking sector increased by 50 bln AMD, or by 8.7% and amounted to 626 bln AMD.

Four banks declared dividends during 1Q-2023, amounting to 20 bln AMD

1.    Ameriabank - 17.7 bln AMD,
2.    Evocabank - 2 bln AMD.
3.    Armeconombank - 220 mln AMD,
4.    Ardshinbank.- 39 mln AMD.

Full version of the analysis of the Armenian banking sector results for 1Q-2023 is available on this link.

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

Full version of the analysis of the Armenian banking sector results for 9 months of 2022 is available on this link.

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.