Wednesday, August 11 2010 11:07
Aggregate net profits of Armenian commercial banks up over threefold to $40.2 million for first half of 2010
ArmInfo. Aggregate net profits of Armenian commercial banks was up over threefold to 14.8 billion or $40.2 million for first half of 2010. Summary net profit of commercial banks totaled 8.2 billion drams (up 87.5% versus first half of 2009).
Ranking of Armenian Commercial Banks prepared by the Agency of Rating Marketing Information (ArmInfo) says summary total incomes of commercial banks for the first half of 2010 amounted to 100.6 billion drams ($273.8 million) and expenses - 82.6 billion drams ($224.7 million). In fact, balance profit (pre-tax) totaled 18.1 billion drams ($49.2 million). Total incomes grew 16% versus the first half of 2009 and expenses - 2.3%. In fact, balance profits doubled. Another 16 banks ensured annual growth of total incomes (Armbusinessbank ensured more than two-fold growth), and 13 banks ensured annual growth of expenses (Armbusinessbank - 88%). Balance profit of 14 banks grew per year (HSBC Bank Armenia - 27- fold). ACBA-Credit Agricole Bank is in the lead in terms of total incomes and expenses - 13.5 billion drams and 11 billion drams, respectively. The bank ranks the first also in terms of the balance profits - 2.5 billion drams.
A total of 18 banks completed the first half of 2010 with 15.1 billion drams summary net profit (inclusive of consolidated data of Ameriabank after merger with Cascade Bank in mid-June 2010). Thus. ACBA- Credit Agricole Bank ranks the first in terms of the net profit - 1.9 billion drams, HSBC Bank Armenia is the second - 1.8 billion drams, VTB Bank Armenia is the third - 1.7 billion drams, Ardshininvestment is the fourth - 1.3 billion drams and Ameriabank is the fifth - 1.2 billion drams. Summary loss of the remaining 3 banks totaled 0.3 billion drams, including 60% or 0.2 billion drams was the share of Armeconombank.
Fourteen banks ensured annual growth of net profit and the indicator of the remaining 7 banks suffered decline. Areximbank-GDP group ensured the highest annual growth of net profit - 20-fold (to 0.3 billion drams - 15th position) and this indicator of Byblos Bank Armenia almost halved and fell from the positive level to negative 29.9 million drams.
For the first half of 2009 the aggregate net profit of commercial banks was 4.4 billion drams and the first two positions belonged to Ardshininvestbank and ACBA-Credit Agricole Bank. 16 banks closed the first half of 2009 with profit (inclusive of Cascade Bank) and the other 6 banks suffered losses, among them were former leaders in terms of profits. All this was the result of the March devaluation of dram and crisis. In 2009 banks that suffered losses in the first half recovered their lead positions. In 2009 the financial reports of Armenian banks was brought in line with IFRS which changed calculation methods and certainly distorted comparisons of indicators for several years. Some banks did not provide quarterly reports, which complicated analysis of the quarterly dynamics.
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