Saturday, August 27 2011 11:32
HSBC Bank Armenia, ArmSwissbank and Ardshininvestbank top three banks in terms of investing in government bonds
ArmInfo. According to the table, the aggregate investments of Armenia's commercial banks in government bonds grew by 31.2% as compared with Jan-June 2010 and decreased by 8.2% in Q2 2011 alone against 4% drop in Q1 2011 and 2.2% growth in Q2 2010 to 110.3bln AMD or $299mln.
Ranking of the Armenian Commercial Banks prepared by Arminfo says that in the first half of 2009 due to AMD's depreciation and the global crisis the index dropped by 21%: in Q2 2009 it dropped by 6.1% while in Q3 2009 it grew by 51.5%. In 2009 faced with the global crisis Armenia's commercial banks reduced their government bond portfolios so as to be able to issue loans. In late June 2009 when Armenia received loans from the World Bank and Russia, they restored the portfolios. In 2010 the index grew more quickly than in 2009 (annual 17.6% and quarterly 10.7%). However, in Q1 and Q2 2011 the banks against reduced their government bond portfolios so as to simulate their lending activities.
In Q2 2011 the share of investments in government bonds in total assets dropped from 6.8% to 6.3% against 7.5% Dec 31 2010, 6.1% June 30 2010 and 5.3% June 30 2009. The leader in the index is HSBC Bank Armenia - 19.9bln AMD ($54.2mln), followed by Armswissbank - 13.9bln AMD ($37.7mln), Ardshininvestbank - 11.6bln AMD ($31.4mln), Ameriabank - 11.2bln AMD ($30.5mln) and VTB Bank Armenia - 9.7bln AMD ($26.3mln). ProCredit Bank is the only bank in Armenia having no investments in government bonds. In Q4 2010 it nevertheless formed a portfolio worth 1.2bln AMD or $3.3mln so as to be able to continue SME lending activities. Reduction to 1bln AMD or $2.7mln in Q1 2011 and to 0 in Q2 2011 shows that the bank has sold all of its government bonds for spending the receipts on SME lending.
In Q2 2011 the share of the top five in the total investments in government bonds grew from 60% to 63% against 58% Dec 31 2010 and 57% June 30 2010. Only HSBC Bank Armenia registered quarterly reduction in the index - 2.2%. Ardsininvestbank and Armswissbank registered annual reduction by 1.6-1.9%.
15 banks showed annual growth in investments in government bonds with Prometey Bank showing the highest annual growth (almost 7 times to 3.9bln AMD, 10th position). 11 banks showed quarterly growth (Q2 2011) in the index (against 8 banks in Q1 2011, 14 banks in Q4 2010 and 10 banks in Q2 2010). Areximbank-GPB Group registered the biggest quarterly growth (twice to 0.9bln AMD, 20th position).
5 banks showed annual decline in investments in government bonds, 10 banks - quarterly decline. Mellat Bank recorded the biggest annual decline - 43.2% (down from the top ten to the 12th position), Anelik Bank and ACBA-Credit Agricole Bank registered the biggest quarterly decline - 56% down from 9th and 11th to respective 14th and 16th positions.
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