Thursday, August 15 2013 16:12
Growth of general obligations of the Armenian banking system slackens
ArmInfo. General obligations of the Armenian banking system grew 3.2% from 7.2% for Q2 2013 (versus 8.8% growth for Q2 2012). As compared to Q2 2012 this indicator grew 21.5% (a 29.1% year over year for Q2 2012). As of July 1 2013 general obligations of the Armenian banking system totaled 2.2 trillion drams ($5.4 bln). Call liabilities grew 14.2% for Q2 2013 (versus 14.3% growth for Q1 2013 and 5% growth for Q2 2012), bank correspondent accounts (loro) grew 71% (versus 6.1% decline for Q1 2013 and nearly 3-fold decline for Q2 2012) amid 0,1% decline of time deposits (versus 9.1% decline for Q1 2013 and 9.4% growth for Q2 2012). Deposits and loans from banks and other financial organizations fell 5.4% (versus 4.1% growth for Q1 2013 and 15.1% growth for Q2 2012). Loro accounts fell for the quarter under review as this indicator of four banks grew significantly (including Mellat Bank).
According to the rating of Armenian Banks prepared by ArmInfo, comparing to Q2 2012 time deposits grew 23.4% (versus 39.2% growth in 2012), deposits and loans from banks and other financial organizations grew 6% (versus 21.5% growth in 2012), call liabilities grew 34.2% (versus 17.5% growth in 2012), amid 20.6% decline of bank correspondent accounts (loro) - mainly due to Anelik Bank (versus 49.4% growth in 2012). 18 out of the 21operating commercial banks increased time deposits, while 11 banks increased call liabilities versus Q2 2012. Time deposits of 15 banks grew for Q2 2013 versus Q1 2013, while call liabilities of only 12 banks experienced growth for the quarter under review. Prometey Bank's time deposits grew nearly twofold versus Q2 2012 (up from the 19th to the 18th position in absolute term), while ArmSwisbank's time deposits grew for Q2 2013 - 27.3% (up from the 17th to the 15th position in absolute term).
Ameriabank's call liabilities experienced most significant growth both for the year under review - nearly 4-fold (up from the 3rd to the 1st position in absolute term) due to ongoing growth of corporate funds. Call liabilities of Areximbank-GPB Group grew nearly 2-fold for Q2 2013 (a jump from the 10th to the 7th position in absolute term) due to significant growth of corporate funds. Call liabilities of ArmSwissbank and Armbusinessbank suffered the steepest decline versus Q2 2012 - 53.4% and 38% (down from the 6th to the 9th position) as corporate funds of both banks slumped.
The annual dynamics of obligations showed that to retain lending, the banks still raise funds from both the domestic and foreign sources and through involvement into international credit programs.
In the general obligations time deposits fell from 43% to 42% for Q2 2013 (back to the last year's level). The share of call liabilities was up from 21% to 23% (versus 20% for Q2 2013), with deposits and loans from banks and other financial organizations falling from 28.4% to 26% (versus 30% for Q2 2012). Bank correspondent accounts (loro) were up from 0.3% to 0.5% (versus 0.7% for Q2 2012). These indicators amounted to 928.6 bln drams, 500.8 bln drams, 575.2 bln drams, and 10.6 bln drams, respectively on July 1 2013. For comparison, in the pre- crisis year 2007 the share of call liabilities in total was 35%, the share of time deposits - 37%, deposits and loans from banks and other financial organizations - over 11%. In 2008, these indicators were 25%, 33% and 20%, respectively. In 2009, these indicators were 26%, 41% and 24%, respectively. In 2010 - 24%, 40% and 30%, and in 2011 - 38%, 24% and 31%, respectively.
Call liabilities of Ameribank and Areximbank GPB Group experienced the highest growth for both the year and the quarter under review (see paragraph 1) largely due to 3-5fold growth of corporate funds. Call liabilities of ArmSwissbank and Armbusinessbank suffered the steepest decline for both the quarter and year under review (see paragraph 1) due to slumping corporate funds. Top three banks by the volume of call liabilities were Ameriabank (164.5 bln drams), HSBC Bank Armenia (75.4 bln drams), and VTB Bank (Armenia) (35.1 bln drams). Ameriabank retained its leadership position in terms of the corporate call liabilities- 152.9 bln drams, while HSBC Bank Armenia retained the leadership position in terms of personal call liabilities - 48.6 bln drams.
ArmSwissbank's time deposits experienced the most significant growth for Q2 2013 (see paragraph 1) due to 38% growth corporate funds and moderate growth of personal funds. Prometey Bank was the leader in terms of the growth of time deports versus Q2 2012 (see paragraph 1) due to ongoing growth of corporate funds (nearly 3-fold) and personal funds (nearly 2-fold). Time deposits of Armbusinessbank fell 23.4% for Q2 2013 due to nearly 3-fold decline of corporate funds.
Mellat Bank that had been on the last 21st position for a long period nearly cut the portfolio of time deposits both for the quarter and year under review still due to insignificant personal deposits of non-residents. Top five banks in terms of time deposits were as follows: Ameriabank- 94.2 bln drams, Ardshininvestbank retained the second position - 93.5 bln drams, the previous leader Unibank was forced to the third position- 93.4 bln drams, ACBA-Credit Agricole Bank jumped to the 4th position - 91.3 bln drams and forced VTB Bank (Armenia) to the 5th position - 87.5 bln drams. The share of these banks is still nearly 50% of total time deposits of the Armenian banking system versus 52% a year ago. The share of personal time deposits in total time deposits of the top five banks was the biggest. Unibank retained the leadership in terms of personal time deposits - 72.6 bln drams. Ameribank was the leader in terms of corporate time deposits (71.7 bln drams).
Ameriabank seized the leadership position of HSBC Bank Armenia in terms of the share of call liabilities in general obligations as of Jul 1 2013 - 50.3%. Unibank retained leadership position in terms of the share of time deposits in general obligations - 78.7%. INECOBANK, ACBA-Credit Agricole Bank, ProCredit Bank and Areximbank GPB Geoup were the leaders by the share of interbank deposits/loans in general obligations. - 45%-61%. ACBA Credit Agricole Bank was the leader in terms of the volume of deposits/loans.
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