Despite the slowdown in the growth of lending, the banks of Armenia get pretty high profit

ArmInfo. Contrary to the slowdown in the growth of lending, the banks of Armenia are making quite a high profit. According to the Express-Ranking of Armenian Banks, prepared by the Rating service of the IArmInfo Information Company , the growth rate of crediting in 2016-2017 from 16.5% slowed to 4.3%, however, the aggregate net profit of the banking system from negative dynamics in 26.4% in 2016 went to the positive 15.6%. It is noteworthy that the investments of banks in securities increased in 2017 more significantly - by 22.3%, rather than lending volumes, and at the same time, the balances on nostro accounts (including in the Central Bank) increased significantly.

Only in the fourth quarter of 2017, net profit fell by 14.2% (with a decrease in lending by 0.3%), against a decline of 73.7% during the same period of a year ago, when the market was in the process of consolidation and there was a reduction in players.

As a result, the total assets of the banking system in 2017 increased by 6.7% (against 14.7% growth in 2016), and almost the same slowdown in growth was observed in total liabilities - from 14.1% to 6.8%.

Total capital slowed growth from 17.9% in 2016 to 5.8% in 2017, due to the accumulation of accumulated profits from positive 10% in 2016 to minus 9.7% in 2017 and the declining growth rate of the authorized capital from 18.2% up to 10.5%.

As a result, the average for the banking market declined in 2017 levelscapital adequacy ratio (N1 - min12%) - from 38.76% to 33.23%, the standard of total liquidity (N2 / 1 - min 15%) - from 37.55% to 35.99%, the standard current liquidity (N2 / 2 - min 60%) - from 253.83% to 222.42%.

In TOP-3, Ameriabank, Ardshinbank and Armbusinessbank, which are the first three lines also for credit investments, for liabilities to customers and for general obligations, were entrenched in the assets.

In terms of total capital, the top three are Ameriabank, Ardshinbank and ACBA-Credit Agricole Bank, and under the charter capital - Ardshinbank, VTB Bank (Armenia) and Ameriabank.

According to the annual net profit in the TOP-3, Ameriabank, INECOBANK and Ardshinbank were consolidated.  By the end of 2017, the assets of the Armenian banking system amounted to 4.4 trillion drams (over $ 9 billion), including credit investments and other loans - 2.6 trillion ($ 5.5 billion). The total capital reached 701 billion drams ($ 1.4 billion). Total liabilities amounted to 3.7 trillion ($ 7.6 billion), including liabilities to customers - 2.6 trillion drams ($ 5.3 billion). Net profit of the banking system of Armenia in 2017 amounted to 38.3 billion drams ($ 79.1 million).

Note that in 2015-2016 from the banking market came ProCredit Bank, BTA Bank, Areximbank-GPB Group and Armenian Development Bank, united respectively with INECOBANK, Armeconombank, Ardshinbank and ARARATBANK. ProCredit Bank and BTA Bank - in December 2015, and Areximbank- GPB Group and Armenian Development Bank - in December 2016. The consolidation of the banking sector was dictated by the need to implement a tightened by the Central Bank of RA regulation on the minimum amount of total capital - 30 billion drams from January 1, 2017, against the previous 5 billion drams. As a result, in 2017, 17 banks entered.