We are presenting to your attention the summary of the results of the Armenian banking sector for 1HY 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 1HY 2024.

Net Profit

The total net profit of all Armenian banks during 1HY 2024 is equal to 172 bln AMD, which is by 30 bln AMD or by 21% more than it was recorded during 1HY 2023.

According to our preliminary forecasts, the ROE of the Armenian banking system will be around 20% in 2024.

All 18 banks registered a profit during the mentioned period.

The largest profit was recorded by Ardshinbank, amounting to 50,1 bln AMD. The bank has also the largest total assets.

Total loan portfolio

The total loan portfolio of the banking sector during 1HY 2024 increased by 6.8%.

As of 30.06.2024, the total loan portfolio amounted to 5.372 bln AMD and its share in total assets is 55%.

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

The market share of 5 largest banks (Ameriabank, Ardshinbank, Acba bank, Amio bank and Inecobank) by total loan portfolio is 60%.

Ameriabank has the largest market share - 19.9%.

Bonds

During 1HY 2024, the total balance of bonds issued by Armenian banks increased by 34 bln AMD or 9%.

As of 30.06.2024, the total balance of issued bonds amounts to 424 bln AMD.

13 out of 18 banks issued bonds.

Total Equity

During 1HY 2024, the total equity of the Armenian banking sector increased by 161 bln AMD or 6,9% and amounted to 1.646 bln AMD.

The mentioned increase is mainly explained by the generated profit, which was equal to 172 bln AMD.

In 1HY 2024, 4 banks significantly increased their share capitals, by a total amount of 83.4 bln AMD, mainly from retained earnings:
    
-    Ardshinbank - 50.2 bln AMD,
-    Inecobank - 20.5 bln AMD,
-    Fast Bank - 10 bln AMD,
-    Armeconombank - 2.7 bln AMD.

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.