We are presenting to your attention summary of the results of Armenian banking sector for 9 months of 2021, prepared and published exclusively on Banks.am by a specialized consulting company RUMELS Management Solutions.

RUMELS Management Solutions is a specialized consulting company. The company was founded by Ruben Melikyan in 2013. For the past 22 years Ruben Melikyan occupied responsible management positions in companies operating in different spheres thus gaining experience in various sectors of economy such as internal and external audit, retail and wholesale trade, mining industry and banking system.   R. Melikyan is a full member of ACCA and Oxford University graduate (Executive MBA).



The aim of the study is to analyze the main finanacial indicators of Armenian banking sector for the first 9 months of 2021.

Net Profit

-    Total net profit of all Armenian banks for 9 months of 2021 is equal to 66.3 bln AMD, which is by 7.7 bln AMD, or 13.2% more than was recorded during 9 months of 2020.

Total loan portfolio

-    Total loan portfolio of banking sector during 9 months of 2021 decreased by 2.9%.
-    As of 30.09.2021, total loan portfolio is amounting to 3.927 bln AMD and its share in total assets is 57%.
-    Mentioned total loan portfolio includes retail and corporate loan portfolios.

-    Market share of largest 5 banks (Ameriabank, ArmBusinessBank, Ardshinbank, ACBA Bank and Converse Bank) by total loan portfolio, is 62%.
-    Ameriabank has the largest market share – 16.8%.

Current accounts and deposits from customers

-    During 9 months of 2021, total balance of current accounts and deposits of retail and corporate clients of banking sector increased by 150 bln AMD or by 4.2%.
-    As of 30.09.2021, total balance of current accounts and deposits of retail and corporate clients is amounting to 3.721 bln AMD and its share in total liabilities is 62%.

Bonds

-    During 9 months of 2021, total balance of bonds issued by Armenian banks increased by 6 bln AMD, or 1.4%.
-    Currently 12 from total 17 banks, have issued bonds. Majority of bonds are listed on Armenian Stock Exchange.

Total equity

-    During 9 months of 2021, Total Equity of Armenian banking sector increased by 46 bln AMD, or 5% and is amounting to 927 bln AMD.

-   The major component of total equity of Armenian banking sector is Share Capital (including share premium), with the share of 60% and is amounting to 554 bln AMD as of 30.09.2021.

-    Second largest component - Retained Earnings (including general reserve) with the share of 37% and is amounting to 348 bln AMD as of 30.09.2021.

-    Four banks declared dividends during 9 months of 2021, amounting to 11.2 bln AMD (Inecobank-7.5 bln AMD, ACBA Bank-2.5 bln AMD, AEB-1.05 bln AMD and Ardshinbank-130 mln AMD).

-    Third component - Revaluation Reserves (mainly PPE and Financial Assets revaluation reserves) have share of 3% and are amounting to 25 bln AMD as of 30.09.2021. During 9 months of 2021, they decreased by 44%.

Full version of the analysis of Armenian banking sector results for 9 months of 2021 is available on this link.

Full version of the analysis of Armenian banking sector results for 1HY 2021 is available on this link.

Full version of the analysis of Armenian banking sector results for 1Q 2021 is available on this link.

Full version of the analysis of the loan portfolio of Armenian banking system 2019-2020 is available on this link.

Full version of the analysis of the profitability level of Armenian banking system 2019-2020 is available on this link.