Wednesday, May 12 2010 14:38
Total investing in government bonds by commercial banks of Armenia down 6.3% to $210.6mn for Q1 2010
ArmInfo. Total investing in government bonds by commercial banks of Armenia was down 6.3% for Q1 2010 versus 10.7% growth for Q4 2009. This indicator grew 31% per year to 84.3bn drams or $210.6mn as of March 31 2010.
This indicator fell 16% for Q1 2009 because of the devaluation of the national dram in March and the financial crisis. This balance item fell because of reduction of the trade portfolios of government bonds, for the banks have to some extent maintained lending on the proceeds on these bonds.
Ranking of Armenian Commercial Banks prepared by Agency of Rating Marketing Information (ArmInfo) says the share of investing in government bongs by commercial banks in total assets was 5.9% versus 6.7% on Dec 31 2009 and 5.6% on March 31 2009. Armswissbank has maintained its lead position by investing in government bonds - 13.2bn drams ($33mn). Ardshininvestbank ranks the second with 11.4bn drams ($28.5mn), HSBC Bank Armenia is on the third position by 9.2bn drams ($23mn), VTB Bank (Armenia) is on the 4th position by 6.8bn drams ($17mn) and Amerabank is on the 5th position by 6.7bn drams ($16.7mn). Top five banks invested 55% of total investing in government bonds as of March 31 2010. These banks also ensured their shares in total investing in government bonds for Q1 2010. The most significant growth was registered at the two banks: Ardshininvestbank increased its share from 11.7% to 13.5% and Armswissbank from 14.3% to 15.7%.
A total of 16 banks ensured annual growth of investing in government bonds, including Armeconombank increased investing almost 30 times to 1.6bn drams. Armeconombank increased this indicator almost 3 times for Q1 2010 alongside with another 12 banks.
Five banks reduced investing in government bonds per year and 8 banks reduced this indicator for Q1 2010. Armbusinessbank suffered the most tangible annual and quarterly decline of this indicator (63% and 88% respectively), whereas in early 2010 the bank was on the 3rd position by this indicator. ProCredit Bank is the only bank not investing in government bonds.
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