Monday, November 15 2010 15:52
By 1 October 2010 total liabilities of Armenian banking system grew by 15% to $3.1 bln
ArmInfo. Over Q3 2010 the total liabilities of the Armenian banking system grew by 6,4% (against 4,1% decline over Q2 2010 and 12,5% growth over Q3 2009), the annual growth being 14,9% (against 40,9% annual growth in 2009), having totaled 1.135 trln AMD ($3.1 bln).
According to the Ranking of Commercial Banks of Armenia by the Agency of Rating Marketing Information (ArmInfo), by the share of call liabilities in the total liabilities as of 30 Sep 2010, HSBC Bank Armenia is in the lead (60,6%), and by time deposits in the total deposits Unibank is in the lead - 68,9%, the quarterly growth being 2,4% and 2,6% respectively.
In the structure of liabilities, growth in time deposits in Q3 2010 made up 0,3% (against 15,6% growth over Q3 2009), the growth in call liabilities made up 6,3% (against 14,3% growth over Q3 2009), the growth in deposits and loans from banks and other financial organizations made up 18,9%, while the decline in banking loro-accounts made up 13,1%. The annual growth in time deposits made up 13,1%, call liabilities - 17,4%, twofold annual growth was fixed in deposits and loans from banks and other financial organizations, and almost twofold growth in the funds on loro-accounts.
Out of 21 commercial banks, call liabilities grew in 14 banks, time deposits increased in 13 banks, annual growth in call liabilities was registered in 13 banks, and annual growth in time deposits was fixed in 16 banks. The annual dynamics of the liabilities demonstrates that the commercial banks attracted funds not only in the domestic market, but also from foreign sources, including the ones under international credit programs in order to maintain the crediting rates against the background the crisis aggravated in 2009. Moreover, more active involvement of banks in international programs allows them to thereby solve the problem of raising long-term and "cheap" funds providing the opportunity to credit the borrowers at attractive terms.
It should be noted that since late June 2009 Armenia has been receiving funds within the frames of the WVB support credit and Russian stabilization loan, part of which is directed to SME development in Armenia via the commercial banks. The banks receive these funds from the Central Bank of Armenia and the government in Armenian drams. Since Q2 2010 the country has been receiving additional funds from KfW under a mortgage program. It also should be noted that the considerable annual growth in the AMD deposits is conditioned by the abrupt AMD devaluation by 22% on 3 March 2009.
As of 30 Sep 2010, in total liabilities the share of time deposits made up 37,6%, call liabilities - 25,4%, deposits and credits from the banks and other financial organizations - 26,6% and banking loro-accounts - 1,2%, the absolute value of which was 426.1 bln AMD, 287.6 bln AMD, 302.3 bln AMD, and 13.3 bln AMD respectively. In total liabilities quarterly growth was registered only in the deposits and credits from banks and other financial organizations - 2,8%, while time deposits declined by 2,3%, banking loro- accounts declined by 0,2%, and call liabilities underwent no changes.
Over Q3 2010 decline in call liabilities was fixed in 7 banks, annual decline was fixed in 8 banks, the rest of the banks demonstrated growth. The biggest quarterly decline of this index was fixed in Byblos Bank Armenia - 68,1% (20th position), and the biggest annual decline was fixed in the Armenian Development Bank (ADB) - 17,2% (18th position). The biggest quarterly and annual growth was fixed in Ameriabank - 69,4% and almost threefold growth respectively (2nd position). The top three by call liabilities includes HSBC Bank Armenia (63.6 bln AMD), Ameriabank (38.9 bln AMD), and Ardshininvestbank (29 bln AMD).
Over Q3 2010 decline in time deposits was fixed in 8 banks, annual decline was fixed in 5 banks, the rest of the banks demonstrated growth in this index. The biggest quarterly decline in time deposits was fixed in INECOBANK - 16% (14th position), and the biggest annual decline was fixed in Converse Bank - 17,6% (9th position). The biggest quarterly growth in time deposits was fixed in Armeconombank - 21,1% (11th position) and the biggest annual growth was registered in ARARATBANK – almost twice (10th position). The top five by time deposits includes Unibank - 64.2 bln AMD, Ameriabank - 47.2 bln AMD, Ardshininvestbank - 41.7 bln AMD, ACBA-Credit Agricole Bank - 38.2 bln AMD, and ArmBuisnessBank - 36.7 bln AMD, their share being about 54% in summary time deposits of the Armenian banking system. In Unibank, Ardshininvestbank, ACBA-Credit Agricole Bank and ArmBuisnessBank most part of time deposits falls on individuals, and Ameriabank the majority of time deposits falls on legal entities.
To note, since Q2 2010 the indices of Cascade Bank have not been included in the Ranking of Commercial Banks of Armenia by ArmInfo, as the process of merger of Cascade Bank and Ameriabank ended in mid June 2010.
