ArmInfo.n. The last month of the first quarter of 2020 coincided with the beginning of the implementation of measures to prevent the spread of coronavirus, which could not but affect the indicators of the banking system of Armenia, development trends, and the economy as a whole.
The Executive Director of the Union of Banks of Armenia (UBA) Seyran Sargsyan stated this during an online press conference on May 26, presenting the results of the first quarter of 2020. According to him, the total capital of the banking system increased over the reporting quarter by 2.1%, amounting to 862 billion drams. Such dynamics was triggered by an increase in the share capital of two banks. In comparison with the 2014 indicator, the total capital of the banking system of Armenia almost doubled.
By April 1, the assets of the banking system amounted to 5.9 trillion drams (with a quarterly growth of 1.8%), of which 3.7 trillion drams accounted for credit investments (with a quarterly growth of 0.5%). By credit industry, there are segments for which there was a decline in volumes. Thus, lending to the industrial sector decreased over quarter by 7%, and the share in the total loan portfolio amounted to 16% or 539 billion drams, transport and communications - a decline of 13% with a share of 3% or 110.8 billion drams, the trade sector - a decline of 1% with a share of 15% or 501.1 billion drams, the financial sector - a decline of 16% with a share of 7% or 228.7 billion drams. At the same time, the quarterly growth in lending volumes was recorded for: mortgage - by 10% - up to 394.9 billion drams (the share in the portfolio is 12%), the agricultural sector - by 6% to 160.5 billion drams (5%), the construction sector - by 11% up to 213.7 billion drams (6%), consumer loans - 4% up to 951.9 billion drams (28%), services - by 4% to 290.6 billion drams (9%). In this context, S. Sargsyan emphasized that 50.4% of the loans were directed to finance the economy, 40% - to loans to individuals, and the rest fell to interbank loans / deposits. At the same time, he said that following the results of the first quarter of this year in the loan portfolio of the banking system, the shares of the currency and dram components were almost equal - 51.8% and 48.2% (against 50.9% and 49.1% in 2019), I noticed that such a picture was last observed in 2009 (51% and 49%). "The share of the foreign exchange component in the loan portfolio for the reporting quarter increased a little, due to the jump in March of the exchange rate, which reached 504.47 dr / $ 1 by the end of the month. But I think that, according to today's exchange rate, the shares of foreign exchange and dram components have almost become equal again" "he remarked.
According to the results of the first quarter, the total liabilities of the banking system grew by 1.7%, exceeding 5 trillion drams. At the same time, liabilities to customers for the reporting quarter decreased by 1.4% to 3.4 trillion. drams, but in annual terms, this figure increased by 18.6%. Regarding deposits, S. Sargsyan informed that there is a quarterly decline in volumes by 1.1% to 3.5 trillion. drams. At the same time, deposits of residents (individuals and legal entities) increased by 2.5% to 2.6 trillion drams, which indicates that the negative dynamics of the total deposit portfolio comes from a decrease in deposits of non-residents, which account for 900 billion drams. "This is an important indicator that indicates the trust of non-residents in the banking system of Armenia, and their preference to keep their funds in Armenian banks," S. Sargsyan emphasized. In general, according to him, fixed-term deposits increased over the quarter by 2.5% to 1.8 trillion. drams, and on demand - decreased by 3% to 774 billion drams. In the structure of deposits for 2009-2020, the gap between the currency and dram components narrowed in favor of the dram component, in particular, the share of the currency component for the 1st quarter decreased from 57.6% to 57% with the growth of dram from 42.4% to 43%. "In comparison with 2009, we can talk about progress, since then the share of the currency component reached 73%," he said. S. Sargsyan also attributed the profit to the positive results of the banking system, which in the I quarter of 2020 increased by 44.7% per annum, amounting to 23.3 billion drams.
He drew attention to the indicators of capitalization and liquidity: the ratio of total capital to assets amounted to 14.6% (with normative minimum of 12%), the ratio of total capital to liabilities is 17.1%; the ratio of highly liquid assets to total assets - 31.6% (standard liquidity ratio - min 15%), the ratio of highly liquid assets to demand liabilities - 166.2% (current liquidity ratio - min 60%). Answering the question of ArmInfo, the head of UBA noted that the level of capitalization and liquidity indicate the degree of resistance and the ability of the banking system to withstand stressful situations. "Even in the case of a worse scenario, studies show that the risks are manageable and I hope that the banking system will successfully overcome all the difficulties of the post-coronavirus period," he stressed.
According to S. Sargsyan, the growing role of the banking system in the development of the country's economy is evidenced by the growth of indicators such as the ratio of assets to GDP - from 82.6% in 2018 to 88.6% in 2019, loans to GDP - from 54.1 % to 57.1%, deposits to GDP - from 47.7% to 53.4%, against 54.9%, 35.4% and 25.7% in 2011, respectively.