YEREVAN, March 17. /ARKA/. ARKA News Agency’s analysis shows that 16 of Armenia’s 21 commercial banks ended the year 2014 with profits. Their aggregate net profit amounted to about AMD 27.1 billion that year showing a 41.34% decline, compared with 2013.

The remaining five banks sustained losses totaling AMD 12 billion. It should be mentioned for comparison that in 2013 only two banks sustained losses, which totaled AMD 1.8 billion.

Ameriabank, HSBC Bank Armenia, Inecobank, Ardshinbank and Armbusinessbank are flagship banks in ARKA News Agency’s ranking. Their profit amounted to AMD 26.7 billion and made up 97.9% of the aggregate profit of the country’s banks in 2014.

Ameriabank, with its net profit amounting to AMD 4.1 billion and 18% growth, is topping the ranking. It is remarkable that the bank has outdone HSBC Bank Armenia, which was the best for four consecutive years.

As a result, HSBC Bank Armenia was ranked second in 2014 with its profit of AMD 6.5 billion and 18-percent decline.

Inecobank, with AMD 5.2 billion and 6-percent growth, came third in the ranking, Ardshinbank, with AMD 4.2 billion profit and 35% decline, fourth and Armbusinessbank, with its profit built up 86.57% to AMD 3.5 billion, fifth.

According to ARKA News Agency’s analysis, ProCreditbank showed the highest 23.3-time growth among Armenia’s banks. It earned AMD 502.1 million in profits in 2014 (the 14th position in the ranking).

Areximbank- Gazprombank Group was singled out for the sharpest decline in profits, which amounted to AMD 5.7 billion in 2014, while in 2013 the bank gained AMD 108.7 million. The bank came 21st in the 2014 ranking.

Banking analysts say banks’ profits shrank in 2014 mainly because they built up their reserves for possible losses. Economic things and the Armenian dram’s devaluation in December 2014 affected banking businesses as well.

A similar situation was seen also in 2009, when Armenia’s economy sank 14% striking hard at the banking sector, which accounted then for 48.4% losses.

The ranking is based on ARKA News Agency’s ‘Banks of Armenia’ Bulletin
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