We are presenting to your attention summary of the results of the Armenian banking sector for 9 months of 2024, 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 in 9 months of 2024.

Net Profit

The total net profit of all Armenian banks during 9 months of 2024 is equal to 268 bln AMD, which is by 53 bln AMD, or by 25% more than it was recorded during the same period in 2023.

According to our preliminary forecasts, the ROE of the RA banking system will be around 20% in 2024 and net profit around 900 mln USD.

All 18 banks registered a profit during mentioned period.

The largest profit was recorded by Ardshinbank, amounting to 82,6 bln AMD. The bank has also the largest total assets.

Total loan portfolio

The total loan portfolio of the banking sector during 9 months of increased by 14,3%.

As of 30.09.2024, the total loan portfolio amounted to 5,752 bln AMD and its share in total assets is 57%.

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

Market share of 5 largest banks (Ameriabank, Ardshinbank, ACBA Bank, Amio Bank and Inecobank) by total loan portfolio is 60,4.

Ameriabank has the largest market share – 19.7%.

Bonds

During 9 months of 2024, the total balance of bonds issued by Armenian banks increased by 78 bln AMD, or 20%.

As of 30.09.2024, total balance of issued bonds is amounting to 467 bln AMD.

13 out of 18 banks issued bonds.

Total Equity

During 9 months of 2024, the total equity of the Armenian banking sector increased by 260 bln AMD, or 17,6% and amounted to 1.739 bln AMD.

Mentioned increase is mainly explained by the generated profit, which was equal to 268 bln AMD.

During 9 months of, 4 banks significantly increased their share capitals, by a total amount of 83.4 billion AMD, mainly from retained earnings:

- Ardshinbank - AMD 50.2 billion,
- Inecobank - AMD 20.5 billion,
- Fast Bank - AMD 10 billion,
- Armeconombank - AMD 2.7 billion

9 banks have declared dividend during the mentioned period, totaling 88,2 bln AMD.

Full version of the analysis of the Armenian banking sector results for 9 months 2024 is available on this link.