Armenian leasing market is steadily gaining momentum

ArmInfo.In Armenia, leasing transactions are rapidly gaining momentum, the total volume of which by April 2022 exceeded 64 billion drams ($132 million), having  increased by 38.4% year-on-year. This is evidenced by the data as of  March 31, 2022 of the "Financial Rating of Banks of Armenia" and  "Ranking of Credit Companies of Armenia", prepared by ArmInfo IC.

In particular, the total volume of transactions of leasing companies  exceeded 37.7 billion drams ($77.7 million), and banks - 26.3 billion  drams ($54.2 million), and in both cases a significant y-o-y growth  of 37.5% and 39.9%, respectively, was recorded.

In order to avoid duplication of portfolios of related financial  organizations, in calculating the total volume of leasing  transactions, ArmInfo does not take into account the indicators of  ACBA and ArmSwiss banks, which reflect the portfolios of ACBA Leasing  and Armleasing.  ACBA Leasing has a dominant share in the total  volume of leasing transactions - 52.6%, Ameriabank - 40.1%, while  Armleasing's share is 3.3%. It is these three financial organizations  that spur the growth rate of the total leasing portfolio. In  particular, Armleasing with y-o-y growth of 80.2%, Ameriabank - by  47.7%, and ACBA Leasing - by 36.7%.

According to analysts at the AmRating national credit rating agency,  affiliated with ArmInfo IC, such a high growth rate of leasing  transactions is observed against the background of credit stagnation,  moreover, in the banking market with a plus level of 0.01%, and in  the market of credit companies with a deepening into minus 1.4 %. And  this minus could be more significant if it were not for the high  activity of leasing transactions.  To recall, there are 4 leasing  companies operating in Armenia - ACBA Leasing (since April 2003),  Agroleasing (since August 2003), Unileasing (since November 2008) and  Armleasing (since October 2019). And out of 17 banks operating in  Armenia, 7 banks practice leasing transactions - ACBA Bank,  Ameriabank, Armswissbank, Converse Bank, Artsakhbank, VTB Bank  (Armenia) and Araratbank. But ACBA Bank and Armswissbank in their  indicators reflect the leasing portfolios of ACBA Leasing and  Armleasing, respectively.