Armenia`s minister of economy hosts UBA chairman 

ArmInfo. Armenian Minister of Economy Gevorg Papoyan received Chairman of the Union of Banks of  Armenia (UBA) Daniel Azatyan, Chairman of the Board of ArmSwissbank  Gevorg Machanyan and his deputy Ara Makaryan.

As reported by the press service of the Ministry of Economy, the  parties discussed a number of issues related to the agenda for the  development of a sustainable, green, closed-loop economy (circular  economy).  Representatives of the banking sector told the minister  about their programs aimed at developing a green and sustainable  economy, touching upon the process of receiving a grant from the  Green Climate Fund (GCF). The latter, as noted, will be aimed at  strengthening the potential of banks. The interlocutors attached  importance to expanding international partnerships to create new  investment opportunities.

The Minister emphasized that the state's obligations in this  direction are enshrined in the government program for 2021-2026,  which clearly indicates the important preconditions for sustainable  development.

A few days earlier, during a press conference, the head of the SBA  Daniel Azatyan reported that the Armenian banking system closed 2024  with a profit of 363 billion drams, which is 61% higher than the same  period last year. The total capital of the banking system amounted to  1.8 trillion drams, assets - 11 trillion drams, loan portfolio and  deposits - 6.4 trillion drams each. Return on equity (ROE) was 22.3%.

According to the Financial Rating of Armenian Banks as of 31.12.2024,  prepared by ArmInfo Investment Company, the loan portfolio (including  interbank loans/deposits) exceeded 7 trillion drams, with an  acceleration of annual growth from 18% to 22%. In its structure, 51%  or 3.6 trillion drams are corporate loans (with a slowdown in volume  growth from 24% to 18%), and over 43% or 3.03 trillion drams are  retail loans (with an acceleration in volume growth from 18% to 33%).

Total liabilities accelerated in annual growth from 9% to 20%,  exceeding 9.2 trillion drams. In their structure, demand liabilities  still prevail - 3.5 trillion drams, and the volume of term deposits  is 3 trillion drams, and for both indicators, there is an  acceleration in annual growth to 18% and 14%, respectively (from 9%  and 11% in 2023). 

Assets accelerated in annual growth from 9.4% to 20%, exceeding 11  trillion drams. Total capital also accelerated in annual growth from  13% to 20.3%, amounting to 1.8 trillion drams. Based on the results  of 2024, the return on assets (ROA) increased to 3.8% (from 2.6% in  2023), and the return on equity (ROE) reached 23.7% (from 16.3% in  2023). (The estimated exchange rate of the dram against the US dollar  as of 31.12.2024 was 396.56 drams/$1).