Tuesday, March 15 2011 11:31

Toughening of monetary policy breaks forecasts of bankers


ArmInfo. The mega-regulator's policy of "high rates" breaks bankers' forecasts of loan portfolio growth.

Executive Director of Converse Bank Tigran Davtyan says the bank against the background of the monetary policy has lowered its forecasts on loan portfolio growth from 20% in late 2010 to current 5%-10%. Nevertheless, the banker forecasts a 2 billion drams profit for 2011, which by 600 million more than in 2010. As regards the problem of non-performing loans (NPL), the banker said the share of NPL in total credit exposure of the bank is 7%-8% at present. This figure, Davtyan said, is a result of the financial crisis.

As for agricultural loans, the banker said that Converse Bank will continue actively lending loans to the given sector. At present the bank provides farmers with preferential loans at the annual interest of 11%-12%, Tigran Davtyan said.

Ranking of Armenian Commercial Banks prepared by the Agency of Rating Marketing Information (ArmInfo) says credit exposure of the bank as of Jan 1 2011 amounted to 47.8 bln drams (share in assets - 53.3%). The share of lending to the economy totaled 12.5bln drams of total credit exposure of the bank, whereas personal loans totaled 24.3 bln drams. Total capital of Converse Bank made up16.4 bln drams as of Jan 1 2011, assets totaled 89.7 bln drams. The bank's profit for 2010 totaled 1.4 bln drams.
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