Tuesday, February 25 2014 13:28

Mortgage lending rates still slackening in Armenia


ArmInfo. Portfolio of mortgage loans of Armenians banks totaled 143.9 bln drams ($354.8 mln) as of 1 Jan 2014 or 8.1% of total lending. This indicator grew 12% versus Jan 1 2013, and 3.5% in Q4 versus 4.1% in Q3. The growth rates have been generally slackening since Q4 2008. For comparison, in 2007 mortgage lending grew over twofold, in 2008 - 54.5%, in 2009- 4.9%, in 2010 - 6.4% and in 2011 - 22% and in 2012 - 15%.

By data of the Analysis and Finance Rating of Armenian Banks prepared by ArmInfo News Agency, top three banks by mortgage lending are Converse Bank - 16.4 bln drams, VTB Bank (Armenia) woith 15.9 bln drams (the bank was forced to the second position), and HSBC Bank Armenia with 14.770 bln drams. The bank forced Unibank to the 4th position (14.762 bln). Armbusinessbank retained the fifth position (12.1 bln drams).

Mortgage portfolio of the above top five banks in total is over 51%. Out of 21 operating banks, Mellat Bank was the leader by the growth of mortgage lending for Q4 2013 by 18.2% (retained the 19th position. Mortgage loans in the bank's loan portfolio totaled 25%). Ardshininvestbank increased mortgage lending for 2013 (55.8%. up from the 11th to the 9th position). ProCredit Bank mortgage portfolio suffered decline for both the year and the quarter (26-63%, 21st position). Mortgage portfolio of 5 banks grew for 2013 amid quarterly decline of the portfolios of the other 9 banks (versus 6 in Q3).

All the local banks are engaged in the mortgage market.
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