Tuesday, February 12 2013 20:16
Loan portfolios of Armenian credit companies up 9.1% for Q4 2012
ArmInfo. Total credit exposures of Armenian credit companies for Q4 2012 grew 9.1% totaling 157.8 bln drams ($390.4 mln) or 93.5% of assets. The Armenian Central Bank's press-service reports loans to the spheres of culture and entertainment grew by 45.9% to 417 mln drams for Q4. The second in terms of the quarterly growth of loans is mining industry - 27.8% to 440.2 mln drams.
The biggest volume of loans was provided to the financial sector -45.5 bln drams with a 6,2% growth for Q4 2012, with 88.9% being loans to banks. Lending to agricultural sector totaled 30.1 bln drams with a 15,5% growth for Q4. 44.5% of total agricultural loans were provided for cattle-breeding, with 46.2% for plant growing. Trade financing is the third - 19.4 bln drams, with a 4.5% growth for Q4. Retail trade financing made up 81% of total trade financing, with the wholesale trading totaling 17.2%.
The source reports that by late 2012 the credit companies provided 17.4 bln drams mortgage loans, which is 11% of total portfolio of credit companies. Mortgage loan portfolio of the credit companies grew 5.5% for Q4. The share of consumer loans was 15 bln drams or 9.5% of total loan portfolio of the credit companies with an 18% growth for the Q4. Gold secured loans made up 19% of total consumer loans, loans for purchase of housing devices by installments made up 12.2% of total consumer loans, while car loans were a little more than 2%.
By data of the Central Bank, the loan portfolio of the credit companies grew mainly due to loans to economy - 125.2 bln drams or 79.5% with a 36.2% growth versus the same period of 2011. The leading economy sectors in terms of lending are as follows: financial sector - 28.9%, agrarian sector - 19% and trade sector - 12.3%. Loans classified into risk groups and receivables grew 9.1% to 160.5 bln drams for Q4 2012. As of Jan 1 2013 'standard' loans totaled 154.6 bln drams in the loan portfolio or 96.3%, 'controllable' loans totaled 3.4 bln drams or 2.1%, 'non-standard' loans - 1.5 bln drams or 0.9%, 'doubtful' loans - 1 mln drams or 0.6%. There were no 'non-performing' loans. 'Standard' loans grew 9.6% for Q4, 'controllable' loans fell 6%, 'non-standard' ones grew 25%, while 'doubtful' ones fell 17.7%.
By data of the Armenian CB, there were 32 operating credit companies in Armenia as of Jan 1 2013s. The Armenian market encompasses 28 universal credit organizations (UCO), 3 leasing companies and a trade union. Four UCOs are specializing in mortgage: First Mortgage Company, Fides MC, and two state companies - National Mortgage Company and Affordable Housing for Young Families that are engaged in refinancing of mortgage loans.
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