Saturday, August 27 2011 11:31
Assets of the banking system of Armenia UP 12.5% for the first half of 2011
ArmInfo. The assets of the banking system of Armenia grew by 12.5% in Q1 2011 and by 5.7% in Q2 2011 alone against 6.2% growth in Q1 2010 and 2.1% growth in Q2 2010. As compared with Jan-June 2010 the index grew by 28.7% against 21.1% decline in 2010 to 1.8trl AMD ($4.8mln).
Ranking of the Armenian Commercial Banks prepared by Arminfo says the growth in the assets was due to 40.6% growth in loans, 31.2% growth in investments in government bonds, 7.5% growth in cash with the funds on nostro accounts decreasing by 12.3%. The slow growth in Q2 2011 was due to 9% growth in loans against 8% in Q1 2011, 13% growth in funds on nostro accounts against 19% drop in Q1 2011, 2.1% drop in cash against 3.7 drop in Q1 2011, 8.2% decline in investments in government bonds against 4% drop in Q1 2011. In the structure of the assets the share of loans made up 66.9% against 62.7% in Q1 2011, the share of investments in government bonds - 6.3% against 6.8% in Q1 2011, the share of cash - 4% against 4.4% in Q1 2011, the share of funds on nostro accounts - 3.4% against 3.2% in Q1 2011.
According to ArmInfo's experts, lending in Armenia is growing due mostly to funds on nostro accounts, cash, loans provided by international organizations and sale of government bonds. The banks still prefer lending money to the economy rather than individuals.
As of June 30 2011 the top five in assets were ACBA-Credit Agricole Bank, Ameriabank, HSBC Bank Armenia, VTB Armenia and Armbusinessbank, who have 47% share in the aggregate assets of the banking system.
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