We are presenting to your attention summary of the results of the Armenian banking sector for 1HY 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 1HY of 2023.

Net Profit

The total net profit of all Armenian banks for 1HY-2023 is equal to 142 bln AMD, which is by 28 bln AMD, or by 25% more than it was recorded in 1HY-2022.

The largest profit was recorded by Ardshinbank, amounting to 38 bln AMD.

If during next uarters, the profitability level of Armenian banking sector will remain the same, then it’s likely, that in 2023, the net profit will be around 300 bln AMD (in 2022 was 262 bln AMD).

Total loan portfolio
 
The total loan portfolio of the banking sector during 1HY-2023 increased by 8.3%.

As of 30.06.2023, the total loan portfolio amounted to 4.523 bln AMD and its share in total assets is 53%.

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

Market share of 5 largest banks (Ameriabank, Ardshinbank, Acba bank, Armbusinessbank and Inecobank) by total loan portfolio is 60.2%.

Ameriabank has the largest market share – 18.6%.

Bonds

During 1HY-2023, the total balance of bonds issued by Armenian banks increased by 6.9 bln AMD, or 2%.

As of 30.06.2023, total balance of issued bonds is amounting to 352 bln AMD.

13 out of 18 banks issued bonds.

Total Equity

During 1HY-2023, the total equity of the Armenian banking sector increased by 100 bln AMD, or 8% and amounted to 1.417 bln AMD.

During 1HY-2023, retained earnings (including general reserve) of the Armenian banking sector increased by 75 bln AMD, or by 13% and amounted to 656 bln AMD.

Eight banks declared dividends during 1HY-2023, amounting to 68 bln AMD.

1.    Ardshinbank – 18 bln AMD
2.    Ameriabank – 17.8 bln AMD
3.    Inecobank - 13 bln AMD
4.    HSBC Bank Armenia – 5.8 bln AMD
5.    Converse Bank – 4.4 bln AMD
6.    Acba bank – 4.4 bln AMD
7.    Evocabank – 3.4 bln AMD
8.    AEB – 0.74 bln AMD

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

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.