ArmInfo.In the loan portfolio of the banking system of Armenia, the share of non-performing loans in the first quarter of 2021 reached 7.1%. The Chairman of the Central Bank of the Republic of Armenia Martin Galstyan stated this at a press conference on May 4, noting that in comparison with the previous quarter, an increase in non-performing loans was recorded.
In this context, the head of the Central Bank of Armenia said that in Q4 of 2020, the share of NPL in the loan portfolio was 6.6%.
He noted that the share of overdue loans in the consumer loan portfolio exceeds the indicators recorded in the portfolios of agricultural and business loans.
According to the Financial Rating of Banks of Armenia as of March 31, 2021, prepared by ArmInfo IC, the share of overdue loans (taking into account the hopeless risk group) in the loan portfolio reached 9.41%, against 6.95% a year earlier. And at the end of 2020, this figure exceeded 9.5%, against more than 8% in 2019. Moreover, over 40% of the total volume of overdue loans has accumulated in consumer loans, with the domination of doubtful and hopeless risk groups. Net profit of the banking system sank 17% year on year - to 19.4 billion drams ($ 36.5 million). The volume of loan investments slowed down the annual growth from 22% to 7.6%, amounting to 4.3 trillion drams ($ 8.1 billion). Moreover, in the loan portfolio, the volume of corporate and retail loans increased almost the same year-on-year - by 7.2-7.4%, while a year earlier 17.4% growth in the corporate portfolio was accompanied by 32% growth in retail. Nevertheless, corporate loans continue to dominate in the loan portfolio - 60%, while retail loans account for 37.6%. Assets slowed down the annual growth slightly - from 15.3% to 13%, amounting to 6.7 trillion drams ($ 12.5 billion), and in their structure, the share of loans accounted for 60.3%.