Armenian banking system profit in 2024 to exceed 300 billion drams
YEREVAN, December 24. /ARKA/. The profit of Armenia's banking system in 2024 will exceed 300 billion drams, said Martin Galstyan, Chairman of the Central Bank of Armenia.
"The year 2024 can be characterized as one of growth and sustained overall development. If we look at the indicators of the financial and banking system, it becomes clear that the year has been quite successful and profitable. Specifically, we are talking about a return on equity (ROE) of 18% for the year," Galstyan said in an interview with the Public Television of Armenia.
According to him, banks have substantial capital reserves. The total regulatory capital of the country's banking system currently stands at about 1.7 trillion drams.
"At the same time, banking assets for the same period amounted to about 10 trillion drams, which is roughly equivalent to the size of the country's GDP. I would also like to highlight the liquidity component, which is quite high in our banking system. This means the system is able to fulfill all its obligations from previous years without any issues," the Chairman of the Central Bank summarized.
There are 18 commercial banks operating in Armenia. According to the Union of Banks of Armenia (UBA), the net profit of the banking system for the first 9 months of 2024 amounted to $682 million, compared to $586 million in 2023.
According to reports published in accordance with international IFRS standards, the total assets of Armenian banks at the end of September amounted to 10,144.1 billion drams (a 10.5% increase compared to the beginning of the year).
The volume of bank credit investments, net of reserves, amounted to 5,758.4 billion drams, showing a 14.5% increase since the start of the year. Total liabilities for the first 9 months grew by 9.1% to 8,404.7 billion drams, with liabilities to customers reaching 5,914.0 billion drams, a 7.2% increase from the beginning of the year. The total capital of Armenian banks amounted to 1,739.4 billion drams, rising by 17.8% since the beginning of the year. ($1 = 395.58 drams)
