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).
