YEREVAN, February 3. /ARKA/. ARKA News Agency has ranked Armenia’s banks on their profits in 2015.

It should be placed on record that the country’s banking sector faced major challenges in 2015.
Economic growth slowed down, business activity weakened and the population’s paying ability fell in 2015 directly impacting banks’ indicators, including profits.

Banks’ indicators fell mainly in the first half of the year, when impacts from devaluation of the Armenian dram in late 2014 were strong.

Banks’ assets shrank 3.6%, liabilities 5.1% and credit investments 4.5% in Jan-June 2015. Their profits contracted by 54%.

Liquidity indicators worsened as well as non-performing loans grew.

Nevertheless, 16 of the 21 banks operating in Armenia’s territory ended the year with profits totaling AMD 29.5 billion.

Five banks sustained losses amounting to AMD 11.3 billion.

For comparison, in 2014, banks earned AMD 37.4 billion in profits and lost AMD 21.6 billion.
Banks’ net profits totaled AMD 18.2 billion in 2015 against AMD 16.2 billion in 2014 – 12.3% growth.

HSBC Bank Armenia, with its net profit amounting to AMD 6.4 billion in 2015 (2.3% decline, compared with the previous year) is topping ARKA News Agency’s ranking.

Remarkable is that HSBC Bank Armenia left the previous year’s leader Ameriabank behind. The latter is now on the second position with its AMD 4.8 billion and 32.56% decline.

Inecobank came third in ARKA News Agency’s ranking – it earned AMD 4.7 billion in net profit in 2015 (0.35% less than a year earlier).

Ardshinbank ranked fourth – its net profit amounted to AMD 2.8 billion in 2015 (28.2% less than a year before).

Armswissbank, with AMD 1.9 billion and 8.3% decline, is placed fifth in the ranking.

ARKA News Agency’s analysis shows that only four of the banks having profits in 2015 enjoyed profit growth.

ACBA-CREDIT AGRICOLE BANK built up its profits six times in 2015, Prometey Bank 10.2%, Anelik Bank 2.2 times and Mellat Bank 3.1 times.

Of the five loss-making banks, two reduced their losses in 2015, compared with 2015 – Areximbank-Gazprombank Group by 66.8% and VTB Bank (Armenia) by 76.7%.

The ranking is based on ARKA News Agency’s “The Banks of Armenia” Bulletin.

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