Monday, November 18 2013 19:21
Insignificant change in Central Bank's accumulated profit for Q3 2013 leaves bank stock at negative level
ArmInfo. Insignificant change in the Armenian Central Bank's accumulated profit for Q3 2013 left the bank stock at the negative level, according to CB's data provided to ArmInfo. The accumulated profit grew 1.8% for 9 months of 2013 to 148.6 bln drams or $366.7 mln for 1 October (a 0.5% decline for Q3 2013). The negative bank stock grew 11% for 9 months of 2013 (down 3.5% for Q3) to 24.6 bln drams ($60.6 mln) as of 1 Oct 2013.
According to the source, additional statutory capital, capital reserves, and issue capital were left unchanged - 107.5 bln drams, 17.4 bln drams and 100 mln drams, respectively. Negative revaluation reserve of the assets eligible for sale was down 19.3% for 9 months and 8.7% for Q3 to 953.8 mln drams.
Total assets of the Central Bank grew 33.6% for 9 months and 45.5% for Q3 2013 to 1.5 trillion drams. The share of foreign exchange assets was 72% of total or 1,047 trillion drams ($2.6 bln), the national currency assets made up 28% of total or 411.7 bln drams ($1.015 bln). Foreign currency assets grew 33.6% for 9 months and 45.4% for Q3 alone, while the national currency assets grew 10.9% and 5.6%, respectively.
General obligations of the Central Bank grew 26% for 9 months and 30.7% for Q3 of 2013 to 1.5 trillion drams. Foreign currency obligations grew to 51% of total or 753.3 bln drams ($1.8 bln), with the national currency obligations growing to 49% or 729.7 bln drams. The obligations in national currency fell 0.2% for 9 months and grew 5.5% for Q3 2013, while foreign exchange obligations grew 69.2% for 9 months and 69.9% for Q3 2013.
The share of the funds placed with banks and other financial organizations in total foreign exchange assets and the share of the commitments to the Government of Armenia in the foreign currency obligations significantly increased for Q3 2013. The share of loans and return repo-agreement in the national currency assets and the share of commitments to the Government, deposits and funds of financial organizations in the national currency obligations also significantly increased for Q3 2013. The share of the funds placed with banks and other financial organizations is the biggest in the foreign exchange assets. The share of the commi8tments to the Government and IMF is the biggest in the foreign exchange obligations. The share of circulating banknotes and coins is the biggest in the national currency obligations.
To recall, the Government of Armenia adopted a decision on 18 Aug 2011 to provide the Central Bank with a bill with a 77.513 bln drams face value to cover the accumulated loss (for 2010 - 123.968 bln drams, for 2011 - 123.504 bln drams or $320 million). In the first half of 2012 the accumulated loss of the CB fell 10%, but increased in Q3 by 3.6%m and in Q4 by 25.5%. Thanks to the Government bill, the capital stock of the CB was increased from the negative to the positive level in early 2012. As of 1 October 2013 it was still at a positive level.
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