Thursday, October 2 2014 17:59
Union of Banks of Armenia: Armenian banking system is stable but it also has some problems
ArmInfo. The banking system of Armenia can be characterized as stable but it also has some problems, Samvel Chzmachyan, Chairman of the Union of Banks of Armenia, said at today's International Banking Conference 2014 in Yerevan. "On the one hand, the system completed the year 2013 with growth in all key financial indices, which demonstrates continuous development. On the other hand, since 2013 Armenia's economy has faced slowdown in growth rates, which has created additional problems for the banks", he said.
Nevertheless, the banking system keeps on increasing the lending to economy. "So, today we observe quite dynamic processes in the banking system of Armenia: the legislation is undergoing serious changes, the pension reform is not being conducted so easily, and amid the lack of state banks our business is becoming more and more competitive, when we should work hard to find new income sources", said Chzmachyan.
According to the Financial Rating of the Banks of Armenia prepared by the Agency of Rating Marketing Information (ArmInfo), in 2013 the assets of the Armenian banking system totaled 2.9 trillion AMD (up 22.8% versus 2012). As of late 2013 the lending amounted to 1.8 trillion AMD (up 14.4%). In the structure of the loan portfolio of the Armenian banking system, lending to economy totaled 64.3% or 1.2 trillion (13.6%). The payables to the customers amounted to 1.6 trillion (up 33%). The aggregate total capital of the banks amounted to 472.2 bln AMD (up 16.7%). The net profit was over 48 bln AMD (up 22%). ROE was 11.2% (versus 10.3% in 2012), and ROA was 1.81% (versus 1.76% in 2012).
The National Statistical Service of Armenia says that in 2013 the economic growth in Armenia was 3.5% versus 7.2% in 2012.
The Moscow International Currency Association (MICA) is holding an International Banking Conference in Yerevan. The topic of the conference is "The Banks in the Age of Changes: New Challenges, New Tests, New Opportunities". Invited are representatives of the state regulatory structures, top managers of the banks, stock exchanges, brokerage and investment companies, heads and employees of the treasury divisions, financial institutions, FX&MM dealers, experts and analysts from Russia and other countries. The conference will last till October 4. BBR Bank is the official sponsor of the conference.
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