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).
