Total assets of Armenia’s banking system 24.35% of GDP by end 2007

YEREVAN, February 20. /ARKA/. As of the end of 2007, the total assets of Armenia’s banking system constituted 24.35% of GDP. An analysis made by the ARKA News Agency showed that the level of banks’ financial mediation grew by 4.67 percentage points (19.68% on January 1, 2007).

The share of earning assets in GDP made about 20.62% against 16.9% early in 2007, banks’ credit investments 13.35% (9.36% early in 2007). The share of lending in GDP constituted 12.96% (against 8.6% the year before) without deposits placed in banks. The banks’ profit constituted about 0.68% of GDP against 0.63% in 2006. The total capital in the GDP constituted about 5.47% on December 31, 2007 against 4.50% as of December 31 of 2006.

Deposits attracted by banks from individuals and legal entities made 12.74% of GDP (11.32% early in 2008).

In fact, the level of the banking system’s financial mediation rose during the year with assets of the banking system having increased 45.7%. The volume of economy lending grew by 78.5%, the capital increased 43% and the profit – 29.2%.

The analysis shows that each commercial bank operating in Armenia makes its contribution to the country’s economic development. Specifically, the HSBC Bank Armenia remains leader in total assets: the bank’s assets exceeded 100bln Drams for the first time and reached 104.5bln Drams by December 31 2007, which is a 30.24% increase.

The bank’s share in the total assets of the country’s banking system is 13.21%. The volume of economic lending by the bank reached 51.6bln Drams by the same date (ranked the third), which constitutes 12.31% of the total lending of the banking system. The share of the HSBC Bank Armenia in deposits from persons and legal entities is 19.37% (77.5bln Drams).

Among the leaders are also Ardshininvestbank (93.8bln or 11.87% of the total assets of Armenia’s banking system), AKBA-Credit Agricole Bank (80.3bln Drams), Bank VTB (Armenia) (70.1bln Drams) and Conversebank (58.7bln Drams).

About 52% of the banking system’s assets are concentrated in five leading banks. Their assets constituted 12.98% of the GDP.

Altogether, six banks have assets exceeding 50bln Drams and eight banks’ assets range from 20bln to 50bln Drams.

In 2007 the highest asset growth rates were recorded by Araratbank (by 3.2 times), Armswissbank (2.2 times) and Armbusinessbank (99.7%). In absolute terms, the highest increase was recorded by AKBA-Credit Agricole Bank (by 27.6bln Drams), Ardshininvestbank (24.7bln Drams) and Bank VTB (Armenia) (24.4bln Drams).

As of December 31 2007, twenty-two banks were operating in Armenia, including Procreditbank that was issued a license in December 2007. According to the Central Bank of Armenia (CBA) total assets of Armenia’s banking system were 764.4bln Drams.

According to Armenia’s National Statistical Service, the GDP (in market prices) made up 3,139.4bln Drams – a 13.7% increase against 2006. ($1=310.38Drams). –0--