During 2022, ROAE of the Armenian banking sector increased by more than 3 times

23.01.2023 | 12:30 Home / News / Articles /
#RUMELS Management Solutions #banks #analysis
We are presenting to your attention the summary of the results of the Armenian banking sector for 2022, prepared and published exclusively on Banks.am by a specialized consulting company RUMELS Management Solutions.

- The purpose of this study is to analyze the main financial indicators of the Armenian banking system during 2022.

Net Profit

The total net profit of all Armenian banks for 2022 is equal to 263 bln AMD, which is by 197 bln AMD, or 4 times more than it was recorded in 2021. The mentioned increase of the net profit is mainly due to a significant increase of the non-interest income (commissions, income from FX conversion, etc.).

The largest profit was recorded by Ardshinbank, amounting to 62 bln AMD.



ROAE

- During 2022, ROAE of the banking sector increased by more than 3 times (from 7.1% to 23.3%).

- During 2022, equity of the banking sector increased by 40%, and amounted to 1.316 bln AMD as of 31.12.22.



Total loan portfolio
 
- The total loan portfolio of the banking sector during 2022 increased by 7.5%.

- As of 31.12.2022, the total loan portfolio amounted to 4.345 bln AMD and its share in total assets is 52%.

- 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 61.7%.

- Ameriabank has the largest market share - 16.9%.



Bonds

- During 2022, the total balance of bonds issued by Armenian banks decreased by 101 bln AMD, or 23%.

- One of the possible reasons might be the changed mandatory reservation normative for banks, stipulated by the CBA (previous normative encouraged the banks to start issuing bonds).

- 13 out of 18 banks issued bonds.



Total equity

- During 2022, the total equity of the Armenian banking sector increased by 372 bln AMD, or 40% and amounted to 1.316 bln AMD. This significant increase is mainly explained by the increase of retained earnings and increase of the share capital of Armbusinessbank by 128 bln AMD. The bank’s shareholding has also changed and there are currently two shareholders: MFM Global Invest AG and “Home for youth” Refinancing Credit Organisation CJSC with 75% and 25% of shareholding respectively․ It is also explained by the increase of the share capital of Fast Bank by 23 bln AMD.

- During 2022, retained earnings (including general reserve) of the Armenian banking sector increased by 231 bln AMD, or by 67% and amounted to 577 bln AMD.

- Nine banks declared dividends during 2022, amounting to 35 bln AMD

1.    Ardshinbank - 17.2 bln AMD,

2.    Inecobank - 6 bln AMD,

3.    Acba bank - 3.3 bln AMD,

4.    AraratBank - 3 bln AMD,

5.    Fast Bank - 2 bln AMD,

6.    Armeconombank - 1.38 bln AMD,

7.    Unibank - 0.98 bln AMD,

8.    Converse Bank - 0.51 bln AMD,

9.    Evocabank - 0.6 bln AMD.

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.
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