Tuesday, August 23 2011 17:12

ACBA-Credit Agricole Bank, HSBC Bank Armenia and VTB Bank Armenia register the highest net profits in Jan-June 2011


ArmInfo. ACBA-Credit Agricole Bank, HSBC Bank Armenia and VTB Bank Armenia registered the highest net profits in Jan- June 2011 - 3bln AMD ($8.2mln), 2.8bln AMD ($7.5mln) and 2.6bln AMD ($7.1mln), respectively.

According to ArmInfo's Ranking of Commercial Banks of Armenia, the 4th is Ardshininvestbank with 1.9bln AMD, the 5th - Ameriabank with 1.6bln AMD. Mellat Bank is not in the top five because of the overwhelming prevalence of inter-bank transactions (with the mother bank mostly) in its activities in the second half of 2010. The amount of inter-bank transactions is growing each quarter, so, we can assume that Mellat Bank is present in Armenia for political reasons only.

In ROA the leaders are BTA Bank - 2.63%, INECOBANK - 1.87%, VTB Bank Armenia - 1.82%, HSBC Bank Armenia - 1.80% and ACBA-Credit Agricole Bank - 1.72%. In ROE the top five are VTB Bank Armenia - 10.91%, HSBC Bank Armenia - 10.35%, Artsakhbank - 9.93%, ARARATBANK - 9.92% and INECOBANK - 9.28%.

The 1st in ROE is VTB Bank Armenia, while the 1st in ROA is BTA Bank.

In Jan-June 2011 the total retained profit of Armenia's banking system totaled 21.2bln AMD ($57.6mln) – 39.3% more than a year before. 20 out of 21 banks showed a total profit of 21.4bln AMD, 1 bank (ProCredit Bank) showed 0.2bln AMD loss. ProCredit Bank's loss was due to the opening of 10 branches in 2.5 years. In the last two years the bank has increased its loan book by five times (mostly SME lending). 6 banks registering decline in retained profit with Anelik Bank and Converse Bank sowing the biggest drop - 70-88%. Unibank registered the highest growth in the index (5 times).

The total capital of Armenia's banking system grew by 6.7% in Jan-June 2011 and by 15.8% as compared with jan-June 2010 to 352.5bln AMD ($955.5mln). The growth was due to growing profit and authorized capital (in Q2 2011 ACBA-Credit Agricole Bank alone redoubled its capital due to profit and additional paid-in capital, Q1 2011 Prometey Bank alone redoubled its capital due to growing shareholdings). The leader in authorized capital are ACBA-Credit Agricole Bank - 30bln AMD (due to additional paid-in capital), followed by Ameriabank (leader from Q4 2008 to June 2011) - 25.5bln AMD, Ardshininvestbank - 15.5bln AMD, Prometey Bank - 14.4bln AMD, Anelik Bank - 14.3bln AMD. The top five in total capital are ACBA-Credit Agricole Bank - 42.1bln AMD (13.8% annual growth), Ameriabank - 32.3bln AMD (+6.7%), Ardshininvestbank - 31.1bln AMD (+12.7%), VTB bank Armenia - 28.6bln AMD (+7.5%) and HSBC Bank Armenia - 27.2bln AMD (+44.4%).

The assets of the banking system of Armenia grew by 12.5% in Jan-June 2011 and by 28.7% as compared with Jan-June 2010 to 1.8trl AMD ($4.8bln) due to 40.6% growth in lending, 31.2% growth in government bonds and 7.5% growth in cash with the funds on nostro accounts decreasing by 12.3%. The top five in assets are ACBA-Credit Agricole Bank - 192.7bln AMD (12.4% annual growth), Ameriabank - 177.4bln AMD (+46.2%), HSBC Bank Armenia - 155.2bln AMD (+22.4%), VTB Bank Armenia - 151.9bln AMD (+39.6%) and Armbusinessbank - 143.7bln AMD (+26.8%).

Mellat Bank is not in the top five because of the overwhelming prevalence of inter-bank transactions (with the mother bank mostly) in its activities in the second half of 2010. The amount of inter-bank transactions is growing each quarter, so, we can assume that Mellat Bank is present in Armenia for political reasons only. The reason why Mellat Bank is the first in both ROA and ROE is that its net profit grew much more significantly than the assets and total capital did. The assets increased due to growing nostro accounts (presumably, at the mother bank) while the loans decreased (disregarding the big loan to the mother bank). The bank increased its total capital by repaying its corporate time deposits, reducing personal time deposits and call deposits and thereby enlarging its profit.
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