YEREVAN, December 10. /ARKA/. The banking system of Armenia has been quite profitable, generating a substantial profit both in previous years and this year, said the Chairman of the Central Bank of Armenia, Martin Galstyan, in response to a question from the ARKA news agency.

Recalling that the regulator had increased the countercyclical capital buffer to 1.75%, he stated that this would help mitigate stressful scenarios in the future.

"From a liquidity perspective, the banking system is also in good condition," he added.

The banking system in Armenia consists of 18 commercial banks. According to the Union of Banks of Armenia (UBA), the net profit of the banking sector for the first 9 months of 2024 amounted to $682 million, up from $586 million in 2023. The UBA forecasts that Armenia's banking system has the potential to reach a net profit of $1 billion in 2025.

According to reports from Armenian banks published in accordance with international IFRS standards, the total assets of Armenian banks at the end of September amounted to 10,144.1 billion drams, showing an increase of 10.5% compared to the beginning of the year and 4.3% in the third quarter. The volume of credit investments by banks, excluding reserves, stood at 5,758.4 billion drams, reflecting a 14.5% growth since the start of the year. Total liabilities for the first 9 months rose by 9.1%, reaching 8,404.7 billion drams, with customer liabilities amounting to 5,914.0 billion drams, an increase of 7.2% compared to the beginning of the year. The total capital of Armenian banks reached 1,739.4 billion drams, growing by 17.8% since the start of the year. ($1 = 395.78 drams)