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

Net Profit

The total net profit of all Armenian banks during 2024 is equal to 363 bln AMD, which is by 149 bln AMD, or by 61% more than it was recorded in 2023.

In 2024, the ROAE of banking sector of Armenia was equal to 22,3% (in 2023 ROAE 16,5%).

All 18 banks registered a profit during mentioned period.

The largest profit was recorded by Ardshinbank, amounting to 133 bln AMD. The bank has also the largest total assets.

In 2024, Ardshinbank acquired 100% of the shares of HSBC Armenia Bank. The bank was renamed to Ardshininvestbank․ Thus, the consolidated financial statements of Ardshinbank were used in the analysis.

Total loan portfolio

The total loan portfolio of the banking sector during 2024 was increased by 25%.

As of 31.12.2024, the total loan portfolio amounted to 6,270 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 64%.

•    Ameriabank has the largest market share – 20,9%.

Bonds

During 2024, the total balance of bonds issued by Armenian banks increased by 118 bln AMD, or 30%.

As of 31.12.2024, total balance of issued bonds is amounting to 508 bln AMD.

13 out of 18 banks issued bonds.

Total Equity

During 2024, the total equity of the Armenian banking sector increased by 300 bln AMD, or 20% and amounted to 1.779 bln AMD.

During 2024, 5 banks significantly increased their share capitals, by a total amount of 126,5 billion AMD, mainly from retained earnings/paid dividends:

• Ardshinbank - AMD 50.2 billion,
• ACBA Bank - AMD 36,8 billion,
• Inecobank - AMD 20.5 billion,
• Fast Bank - AMD 10 billion,
• Armeconombank - AMD 9 billion,

9 banks have declared dividends during the mentioned period, totaling 91 bln AMD.

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

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

Full version of the analysis of the Armenian banking sector results for 1HY 2024 is available on this link.

Full version of the analysis of the Armenian banking sector results for 1Q 2024 is available on this link.

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

Full version of the analysis of the Armenian banking sector results for 9 months 2023 is available on this link.

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.