Friday, August 9 2013 16:53
Accumulated profit of Armenian banking system for 1st half of 2013 up 15.7% to $347.2 mln
ArmInfo. Accumulated profit of the Armenian banking system for the 1st half of 2013 was up 15.7% (versus 13.7% growth for the same period of 2012 and 3.2% decline for the same period of 2011). For Q2 2013 this indicator grew 5.7% (versus 6.6% growth for Q1 2013, 4% growth for Q2 2012, and 13.3% decline for Q2 2011). As compared to the 1st half of 2012 accumulated profit grew 55% and totaled 142.3 bln drams ($347.2 mln) as of June 30 2013.
According to the Financing Rating of Armenian Banks prepared by ArmInfo Agency, the share of accumulated profit in the total capital was 33.3% (versus 32.2% in Q1 2013 and 30.1% in Q2 2012). Positive accumulated profit of 18 commercial banks totaled 145.9 bln drams ($355.9 mln) as of June 30 2013, while accumulated profit of another 3 banks was negative. These banks suffered a total of 3.6 bln drams loss ($8.7 mln). These three banks' total loss increased 50% for the 1st half of 2013, as one of the given banks, Anelik Bank, published its balance sheets exclusive of AnelikRU branch that was alienated in Dec 2012. In fact, the loss of the given bank grew over 20-fold for the 1st half of 2013 ( 41% for Q2).
HSBC Bank Armenia retained its leadership position in terms of accumulated profit- 19.6 bln drams or $47.8 mln (down 9.1% versus 1st half of 2012, and up 9.7% for Q2 2013). Ardshininvestbank was the second with 18 bln drams or $44 mln (up 35.6% versus 1st half of 2012 and 1.2% for Q2 2013). VTB Bank Armenia retained the third position with 15.3 bln drams or $37.2 mln (up 26.9% and 8.4% respectively).
Ameriabank was the fourth with 13.6 bln drams or $33.1 mln drams (up 22.3% and 7% respectively), and ACBA-Credit Agricole Bank was the 5th with 12.9 bln drams or $31.4 mln (up 53.1% and 12.8%, respectively). ACBA Credit Agricole Bank that had retained leadership position for a long period of time invested most of its profit (with issue profit) in capitalization in Q2 2011 and proved on the 11th position in terms of the accumulated profit for Q2 2012 again occurring among the top five banks.
The share of Top five banks in total accumulated profits of the banking system is 56% (with nearly 50% being the share of HSBC Bank Armenia and Ardshininvestbank) versus 57% in the 1st half of 2012, and nearly 58% in Q2 2011. The reduction of this indicator versus Q2 2011 certainly depended on capitalized of one of the top five banks at the expense of profit (ACBA-Credit Agricole Bank - see paragraph 2). Accumulated profits of ProCredit Bank suffered the steepest decline - by 1.5 bln drams ($3.7 mln) with 7%- 19% decline for both the 1st half of 2013 and versus Q2 2012. Bank Anelik suffered 1.2bln drams loss ($2.9 mln) with annual and quarterly growth of the negative indicator. BTA Bank suffered 0.9 bln drams loss ($2.1 mln) with both annual and quarterly reduction of the negative indicator.
Out of 21 operating banks, 17 showed annual growth of accumulated profit. This indicator of 15 banks grew for Q2 2013. INECOBANK's accumulated profit nearly doubled versus the 1st half of 2012 (6th position), while Armeconombank ensured the highest growth of accumulated profits for Q2 2013 - 19% (17th position). Anelik Bank again suffered the steepest decline for both the quarter and the year under review and was down to the negative level with following growth of loss.
It is noteworthy that Cascade Bank amalgamated Cascade Credit universal credit organization in late July 2009. Later on March 31 2010 the bank signed a merger agreement with Ameriabank and the process was completed in mid-Jun 2010. Now the bank operates under brand Ameriabank.
Starting Q4 2012 Anelik Bank's balance sheets have been published exclusive of AnelikRU branch, which was alienated in December 2012, to ensure comparability of annual dynamics.
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