Armenia`s banking system sees double-digit profit growth driven by  increased lending

ArmInfo.  The ongoing lending activity in the first half of 2025 has enabled Armenian banks to consistently increase their profits at double-digit rates. This is evident  in the 29%  annual increase in the loan portfolio  reaching  6.9 trillion ($18 billion) and the total net profit of banks rising  17% per annually to 200.7 billion drams ($522 million), according to  data from  the Express Ranking of Armenian Banks as of 30.06.2025,  prepared by the Investment Company ArmInfo. 

This significantly contributed to the annual growth of assets by  19.4%, reaching a value of 11.6 trillion drams ($30.2 billion).  Additionally, growth was also recorded in investments in securities  increasing by 3% to a total volume of 2.1 trillion drams ($5.4  billion). The share of the loan portfolio in assets increased to 60%,  while investments in securities decreased to 18%. It is worth noting  that such lending activity led to interest income surpassing  non-interest income (mainly generated from card transactions and  money transfers) in annual growth rates - 21% against 19%. Interest  and non-interest expenses both increased at almost similar rates over  the year - by 20.6% and 15.2%, respectively. Total liabilities grew  by 19.5% year- on-year, reaching 9.7 trillion drams ($25.1 billion).  Within this, 68.5% (6.6 trillion drams or $17.2 billion) are  liabilities to clients, and 25.5% (2.5 trillion drams or $6.4  billion) are liabilities to banks and other organizations (including  funds raised from corporate bond placement), with annual growth rates  of 15.8% and 25.6%, respectively.

Total capital increased by 19% year-on-year, reaching 1.96 trillion  drams ($5.1 billion). This growth was driven by a double-digit  increase in both accumulated profit (by 21.3%) and authorized capital  (by 17.2%).  Throughout the year,  five banks decided to replenished  their authorized capital:: Ardshinbank (by 95.2%), AMIO Bank (by  11.8%), Acba Bank (by 64.9%), Armeconombank (by 5.4%) and Unibank (by  11.6%).  Ardshinbank and Unibank raised their authorized capital in  the second quarter of 2025, and AMIO Bank did so the first quarter of  2025. In terms of the top five banks with authorized capital,  Ardshinbank took the lead, displacing AMIO Bank to the 2nd position.  Following them are Acba Bank, VTB Bank (Armenia) and Ameriabank.  According to the results of the first half of 2025, the TOP-5 by  assets are Ardshinbank, Ameriabank, Acba Bank, AMIO Bank and  INECOBANK, by credit investments - Ameriabank, Ardshinbank, Acba  Bank, AMIO Bank and INECOBANK, by investments in securities -  Ardshinbank, Ameriabank, AMIO Bank, ArmSwissbank and INECOBANK, by  liabilities to clients - Ardshinbank, Ameriabank, Acba Bank, AMIO  Bank and INECOBANK, by total capital - Ardshinbank, Ameriabank, AMIO  Bank, Acba Bank and INECOBANK.  In terms of net profit for the first  half of 2025, Ardshinbank is in the lead,  followed by Ameriabank  in  2nd place, Acba Bank  in 3rd, INECOBANK  in 4th and Evocabank  in  5th. 

Note that in Armenia, the number of banks reached 18 with the  addition of a new participant in November 2022, represented by Fast  Bank. However,  in 2024, with the exit of HSBC, the number of banks  again decreased to 17. In 2024, Ardshinbank acquired HSBC Bank  Armenia. Following HSBC's exit from Armenia, there are now three  subsidiaries of foreign banks  operating in the country's banking  sector instead of four: VTB (RF), Mellat (Iran), Byblos Bank  (Lebanon). Additionally, the presence of international institutional  investors in the capital, such as the European Bank for  Reconstruction and Development (EBRD) and the Asian Development Bank  (ADB), which participated in the capital of Ameriabank, has   decreased. Specifically, when  Bank of Georgia Group PLC (BOGG) and  JSC Bank of Georgia became shareholders of Ameriabank with a combined  share of 90%, the EBRD's share decreased to 10%, and the ADB's share  was zeroed out. (The  exchange rate of the dram against the dollar as  of June 30, 2025 was AMD 384.47 /$1).