Thursday, November 8 2012 22:23
ROE of Armenian banking system down 1.6% for 9 months 2012
ArmInfo. ROE (return on equity) of the banking system of Armenia totaled 7.78% for 9 months of 2012, with a 1.6% decline versus the same period of 2011. ROA (return on assets) fell 0.5% to 0.34% for the period under review. As compared to the same period of 2010 ROE fell 0.6%, with ROA falling 0.4%, says Ranking of Armenian Banks prepared by the Agency of Rating Marketing Information (ArmInfo). As compared to the pre-crisis indicator, ROE fell 2.8%, h ROA - 1.6%.
Analysts say that decline of the ROE and ROA is connected with deepening negative balance of currency revaluation that grew 18fold generally in the banking system versus 9 months of 2011, with deepening to 1.2 bln drams. A year ago, negative balance of 14 banks was less significant than current negative balance of 13 banks. ROE and ROA are based on average daily balance sheets of total assets and total equity in the ratio to retained profits for the period under review.
Top five banks by ROE are HSBC Bank Armenia - 17.15%, INECOBANK - 16.57%, ARARATBANK - 13.71%, Ameribank - 13.59%, and Artsakhbank - 13.24%. Top five banks by ROA are ARARATBANK - 3.14%, HSBC Bank Armenia - 2.99%, ArmSwissbank - 2.88%, INECOBANK - 2.70% and Prometey Bank - 2.60%.
Aggregate total capital of banks grew 8.9% versus 9 months of 2011, 1.5% for Q3 2012 to 393.3 bln drams ($968 mln) as of Sept 30. Total assets grew 21.5% versus 9 months of 2011, and 3.9% for Q3 2012 to 2.3 trillion drams ($5.7 bln) as of Sept 30. Aggregate retained profit totaled 29.2 bln drams for 9 months of 2012 ($71.9 mln) falling 7.8% as compared to the same period of 2011.
Top five banks in terms of total equity are ACBA-Credit Agricole Bank - 47.1 bln drams, Ameriabank - 35.9 bln drams, HSBC Bank Armenia - 35.4 bln drams, Ardshininvestbank - 34.7 bln drams and VTB Bank (Armenia) - 29.4 bln drams. Top five banks by assets are ACBA-Credit Agricole Bank - 243.9 bln drams, Ameriabank - 241.5 bln drams, Armbusinessbank - 207.4 bln drams, HSBC Bank Armenia - 206.7 bln drams and Ardshininvestbank - 195.3 bln drams. Top five banks by retain profits for 9 months of 2012 are HSBC Bank Armenia - 5.7 bln drams, Ameriabank- 4.7 bln drams, Ardshininvestbank and VTB Bank (Armenia) - by 3.2 bln drams and ABC-Credit Agricole Bank - 3 bln drams.
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