Saturday, November 13 2010 12:16
Over Q3 2010 Armenian banking system's provision of crediting grew up 7,6% to $2.5 bln
ArmInfo. By 1 October 2010, the volume of real provision of crediting of the Armenian banking system amounted to 902.9 bln AMD ($2.5 bln), having annually grown by 27,2%, and 7,6% over Q3 2010 alone (against 2,3% growth over Q2 2010 and 10,1% growth over Q3 2009). In the structure of assets the share of provision of crediting made up 62,2% (against 61,2% over Q2 2010 and 57% over Q3 2009). According to the Ranking of Commercial Banks of Armenia prepared by the Agency of Rating Marketing Information (ArmInfo), the share of economy crediting made up 64,1% of total provision of crediting, and crediting of individuals made up 30,9%.
Economy crediting by commercial banks amounted to 579 bln AMD ($1.6 bln) by 1 October 2010, the annual growth being 27,7%, and the grown over Q3 2010 being 9,4% (against 23,4% growth over Q3 2009). At the same time, the summary volume of crediting of individuals by commercial banks annually grew by 22,2%, and over Q3 2010 - by 0,2% (against 11,1% decline over Q3 2009), having totaled 278.6 bln AMD ($771 mln) by 1 October 2010.
Unlike the previous years, in 2008-2009 and Q1, Q2, and Q3 2010 the growth rates of crediting of individuals were much lower than those of economy crediting, which was conditioned by the global financial crisis in 2008-2009, when the banks were restrained and careful in consumer crediting, mortgage crediting and autocrediting. Instead, they activated in crediting of small and medium enterprises (under international target credit programs, as well as within the frames of the Russian stabilization loan and WB support credit provided to Armenia in late June 2009), industry, trade, and agriculture.
In Q1 2009 only few banks were engaged in retail crediting (consumer crediting, mortgage crediting, and autocrediting) exclusively on refinancing terms (the loans were provided only to the tried-and-true clients), which led to abrupt reduction in the rates of crediting of individuals over the first three quarters of 2009. Recovery of retail and consumer crediting was observed since Q4 2009 mostly due to creation of the National Mortgage Company (NMC) by the Central Bank of Armenia by July 2009. The NMC was called up to refinance mortgage loans. At the same time, the Central Bank launched the program "Affordable Housing for Young Families", under which mortgage loans are refinanced by the Affordable Housing for Young Families UCO set up in February 2010. In addition, on 19 April 2010 the Central Bank and KfW signed an agreement on continuation of the program on housing financing sustainable market development. As a result of the steps taken, the rates of crediting of individuals started gradually growing.
In economy crediting by commercial banks, the biggest growth over Jan-Sep 2010 was fixed in the sphere of transport and communication - by 66,4%, servicing sphere - by 28,4%, trade sphere - by 24,6%, industrial sector - by 19,1%, construction sector - by 18,3%, agriculture - by 17,8%. In retail crediting the mortgage portfolio of the banks grew by 5,3% over Jan-Sep 2010, whereas autocrediting dropped by 21,1%.
The top five in economy crediting includes Ameriabank - 74.8 bln AMD (76,4% of total provision of crediting of the bank), HSBC Bank Armenia - 61.7 bln AMD (70,3%), Armbusinessbank - 61.2 bln AMD (80%), Unibank - 47.5 bln AMD (63,6%), and VTB Bank (Armenia) - 41.3 bln AMD (55,6%). ProCredit Bank that entered the banking market in February 2008 managed to ensure the biggest share of economy crediting in the credit portfolio by 30 Sep 2010 - 91% or 14.6 bln AMD (15th position). The smallest share of economy crediting in total provision of credititng was fixed in Mellat Bank - 8,2% or 1.3 bln AMD (20th position).
In crediting of individuals ACBA-Credit Agricole Bank is in the lead with 49.5 bln AMD (52,2% of total provision of crediting, including agricultural loans to farmers), the second place is held by VTB Bank (Armenia) - 29.7 bln AMD (40%), and the third position is held by Unibank - 27.2 bln AMD (36,4%). By crediting of individuals in total provision of crediting BTA Bank is in the lead with 72,8% (2.9 bln AMD, 18th position in the banking system), and these are mostly consumer loans. The smallest share of crediting of individuals was fixed in ProCredit Bank - 9,1% or 1.5 bln AMD, which is conditioned by the main specialization of the bank (SME crediting).
Out of 21 commercial banks, quarterly growth of economy crediting was fixed in 14 banks, and annual growth was fixed in 15 banks. Moreover, the biggest quarterly and annual growth of economy crediting was registered in Areximbank-Gazprombank Group (by 42% and almost thrice respectively) to 32.3 bln AMD (8th position), and the biggest quarterly decline was fixed in Byblos Bank Armenia - by 7,8%. Quarterly growth of crediting of individuals was registered in 15 banks, and annual growth – in 16 banks. In particular, the biggest quarterly growth of crediting of individuals was fixed in Ameriabank - 12% and the biggest annual growth was registered in ACBA- Credit Agricole Bank – almost twice. The biggest quarterly decline was fixed in HSBC Bank Armenia - 9%, and annual decline in Mellat Bank - by 47% (the latter's retail portfolio is focused on consumer loans).
To note, in mid June 2010 the process of merger of Cascade Bank and Ameriabank ended, and the merged banks operates in the market under the brand of Ameriabank. The ranking takes into account the indices of the merged bank.
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