Tuesday, November 12 2013 11:56
Cash funds and nostro account funds in banks experienced the biggest growth in assets of Armenia's credit companies in Q3 2013
ArmInfo. The cash funds and nostro account funds in the banks experienced the biggest growth in the assets of Armenia's credit companies over Q3 2013 - by 35.4% and 15.4%, respectively. The Central Bank of Armenia has told ArmInfo that in absolute terms the cash funds totaled 854.9 mln AMD ($2.1 mln, 93% growth versus Q3 2012), and the funds on nostro accounts in the banks amounted to 7.7 bln AMD ($19 mln, 32% growth versus Q3 2012). It should be noted that in Q3 2012 the cash funds slightly grew, while the funds on nostro accounts experienced considerable reduction.
In Q3 2013 the summary assets of Armenia's credit companies grew by 3.6% to $484.6 mln (196.4 bln AMD) by 1 Oct 2013 (up 24.7% as compared with Q3 2012). In their structure personal loans made up 45.6% (89.4 bln AMD or $220 mln in absolute terms) and receivables from the banks and other financial organizations made up 26.4% (51.9 bln AMD or $128.1 mln in absolute terms). In Q3 2013 personal loans grew by 2.2% (against 1% growth in Q3 2012), and the receivables from the banks and other financial organizations rose by 7.9% (against 11.7% growth in Q3 2012). As compared with Q3 2012, personal loans and receivables from the banks and other financial organizations were up 28.8% and 25.7%, respectively.
In addition, the loans provided to the related parties and the employees of the credit companies grew by 10.7% in Q3 2013 (against 2% rise in Q3 2012) to 4.1 bln AMD ($10.2 mln) by 1 Oct 2013 (up 17.7% versus Q3 2012). In the meantime, corporate lending, leasing, factoring, and investments in government securities experienced reduction in Q3 2013 and growth as compared with Q3 2012. In particular, corporate loans dropped by 2% in Q3 2013 (against 0.8% increase in Q3 2012) to 26 bln AMD ($64 mln, 17.4% y-o- y growth). Investments in government securities fell by 7.9% (against 24.4% increase in Q3 2012) to 3.1 bln AMD ($7.7 mln, 19.8% y-o-y growth). Leasing and factoring operations dropped by 2.6% (against 14.2% rise in Q3 2012) to 8.9 bln AMD ($22.2 mln, 8.6% y-o-y growth).
By the CBA's data, as of 1 Oct 2013, there were 33 credit companies and 123 branches in Armenia (against 32 credit companies and 90 branches over the same period of 2012). In February 2013 Credo Finance UCO entered the market. As a result, there are 29 UCOs, 3 leasing companies and 1 credit union in Armenia. 4 of the UCOs specialize in mortgage lending: First Mortgage Company, Fides Mortgage Company, and the state-owned National Mortgage Company and Affordable Housing for Young Families. National Mortgage Company and Affordable Housing for Young Families, which are refinancing mortgage loans, retain leading positions by their loan books among the Top 5 credit companies.
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