Tuesday, March 19 2019 20:21

ArmInfo.The Union of Banks of Armenia (UBA) summed up the results of 2018. At a press conference held on March 19, SBA Chairman Artak Hanesyan and Executive Director Seyran Sargsyan presented the results of the banking system to  journalists.S. Sargsyan noted that by 2019, the total capital of the  banking system of Armenia reached 771 billion drams, exceeding a year  ago by 11.3%. Assets increased by 14% to 4.96 trillion drams. He  noted that the dynamic growth of assets in commercial banks of  Armenia has been observed since 2006. 

"This indicates that the confidence of customers and international  financial structures is growing from year to year, which will allow  Armenian banks to attract more funds for further lending," he  stressed. The loan portfolio increased by 13.7% over the reporting  year, reaching 3.3 trillion drams. S. Sargsyan noted that the share  of corporate loans in the total loan portfolio of the banking system  dropped to 63.6%, reaching 2.1 trillion drams, while the share of  retail lending increased to 33.8%, reaching 1.1 trillion drams.In  particular, the executive director of the SBA noted that during the  year the mortgage portfolio increased by 22%, with a share in the  total loan portfolio of 8%, agricultural loans increased annually by  5.7% (with a share of 5%), lending to the industrial sector - by  9.4%, transport and communications - by 46.2%, trade - by 13%,  services - by 31.2%.Consumer loans showed an annual growth of 36%.<In  each industry, we see growth. A slight decline was recorded only for  loans in the construction industry - by 1.8%. But, in my opinion,  this is due in particular to the fact that the market itself in 2018  was somewhat passive, "he explained. Speaking about the ratio of  loans to GDP of the country, S. Sargsyan said that the share from  35.4% in 2017 increased to 54.1% in 2018.At the same time, S.  Sargsyan noted that in 2018, Armenian banks managed to increase  profits by 27.4% to 62 billion drams. "But this indicator is more  correctly viewed from a qualitative point of view," the expert  emphasized.

 In this regard, he drew attention to the level of capital return,  which in the banking system of Armenia averages 8.36%, which is much  lower than the level in developed countries. "In terms of  attractiveness, Armenian banks are at a low level. And we have to  realize a large amount of work in this direction, "he said.In  conclusion, the Executive Director of the UAB noted that over the  past 7 years, Armenia's GDP has increased by 40.7%, while the main  banking indicators have almost doubled. <Namely, credit investments  increased 2 times, assets, time deposits - 2.1 times, capital- by  88%. This indicates that the banking system of Armenia is developing  dynamically, and the intermediary role of banks is expanding from  year to year, "he concluded.