Tuesday, February 25 2014 15:44
Credit exposures of Armenian banks up 14.4% for 2013 amid 38% growth of overdue loans
ArmInfo. Credit exposures of Armenian banks totaled 1.9 trillion drams ($4.6 bln) as of 1 Jan 2014 or 63.1% of assets. Inclusive of the possible loss reserve, this indicator totaled 1.8 trillion drams (a 30% growth of reserve versus Jan 1 2013). For Q4 2013 loan portfolio growth rates picked up from 0.6% to 3.8% (versus growth acceleration from 0.9% to 3.5% in Q4 2012). As compared to Jan 2013, the loan portfolio growth rates picked up to 14.4%. In total loan portfolio of banks the share of overdue loans is 5.8% (versus 6.2% in Q3 and 4.8% in Q4 2012). This indicator of four banks is 11%-16% (the internationally permitted limit is 10%-15%). The share of the possible loss reserve grew from 1.9% to 2.1% over the year under review (five banks - 3%-4%). The overdue loans increased by 38% for 2013, amid 30% growth of the possible loss reserve. Trade finance and consumer loans made up over 48% of total overdue loans.
Economy sectors financing in the total loan portfolio increased from 63.8% to 64.3% in Q4 2013 (versus 64.5% in Q4 2012) to 1,2 trillion drams ($2.9 bln). This indicator grew 13.6% versus Jan 2013 (18.2% growth for Q4 2012 vs Q4 2011) and for Q4 2013 the growth picked up from 1.1% to 4.7% (versus growth acceleration from 0.3% to 2.9% for Q4 2012). Personal loans of banks grew 19.9% versus Jan 2013 (27.7% year-over-year growth for Q4 2012) and from 2% to 5.7% for Q4 2013 (versus acceleration of growth from1.4% - 5.9% for Q4 2012) to 593.9 bln drams or $1.5 bln. The share of the loan portfolio grew from 30% to 32% versus Jan 2013 (31.4% growth for Q3 2013).
According to the Analysis and Financial Rating of Armenian Banks prepared by ArmInfo News Agency, Armenian banks increased lending in the agricultural sector by 22.8% for 2013, industrial sector - 17.7&, trade sector - 9.2%, transport and communications sector - 8.4%, construction sector - 7.7%, and services sectors - 2%. SME finance makes up over 29% of total loan portfolio of the banking system or $1.3 bln drams with a 10.8% growth for Q4 2013 (versus 1.8% growth for Q3 2013 and 5.9% growth for Q4 2012). This indicator grew 18.5% versus Jan 2013 (13.8% year-over-year growth for Q4 2012). The growth rates of the mortgage portfolio of banks slackened in 20013 (down from 15% to 12%), the portfolio of loans for purchase of goods by installment grew from 10% to 25%, credit cards portfo9lio grew from 10% to 31% (to 66% inclusive of overdrafts), amid growth of car loans.
Ameriabank restored its leadership position by loans to the economy sectors - 139.8 bln drams (80.5% of total loan portfolio), forcing VTB Bank (Armenia) to the second position - 139.6 bln drams (61.5%). HSBC Bank Armenia was up to the 3rd position with 131.6 bln drams (81,8%) forcing Ardshininvestbank to the 4th position - 120.8 bln drams (67.5%). Armbusinessbank is on the 5th position, as before - 95.6 bln drams (74.4%). ProCredit Bank that entered the banking market in Feb 2008 managed to increase the share of its loans to the economy sector in total portfolio to 96.7% or 42.8 bln drams as of Dec 31 2013 (up from the 12th to the 11th position). The lowest share of economy lending in total portfolio of loans - 39.5% was at ACBA-Credit Agricule Bank (7th position). The bank is now focusing on detail lending (retained leadership position). The portfolios of agricultural, industrial and trade loans dominate in the total portfolio of the bank.
Top three banks by personal loans are ACBA-Credit Agricole Bank - 101.3 bln drams (55.9% of total loans, inclusive of agricultural loans to farmers), VTb Bank (Armenia) - 87.5 bln drams (38.5%), and Unibank - 51.2 bln drams (44.3%) that forced Ardshininvestbank to the 4th position. The leader by the share of personal loans in total loan portfolio is still ACBA-Credit Agricole Bank - 55.9% (also by absolute indicator). The bank provides mortgage loans, overdrafts, consumer loans (nearly 63% of personal loans). This indicator of ProCredit Bank was the lowest - 1.5%, as the bank is specializing in SME finance (83% of total loan portfolio).
Out of 21 operating banks, 13 increased lending to economy sectors for Q4 2013 and 15 - for 2013. HSBC Bank Armenia is the leader by the quarterly growth of the given indicator - 18.5% (3rd position due to increased industrial, agricultural and construction loans). Mellat Bank retains its leadership position by the annual growth of lending to economy sectors - 43.4% (21st position, due to trade finance and construction loans). The quarterly growth of this indicator of Mellat Bank was insignificant (3.4%). This indicator of ACBA-Credit Agricole Bank fell 10.6% for 2013 (7th position) amid 9.8% decline of Prometey Bank's indicator for Q4 2013. 16 banks increased personal loans for both 2013 and Q4 2013, with Unibank and Armenian Development Bank being the leaders by annual growth - 36%-39% (3rd and 10th positions, respectively). INECOBANK increased personal loans for Q4 2013 by 14.6% (8th position).
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