AGGREGATE ASSETS OF ARMENIA’S BANKING SYSTEM DECREASED TO 310.9 MLN
DRAMS IN SECOND QUARTER OF 2004

YEREVAN, JULY 28. ARMINFO. Aggregate assets of Armenia’s banking
system decreased by 0.2% in the second quarter of 2004, totaling 310.9
mln drams. The press-service of the Armenian CB told ARMINFO that it
was accounted for by a decline in the investments in other securities
by 81.4%, which totaled 3.4 bln drams on July 1, 2004. Besides, other
assets decreased by 14.6% in the quarter under review, totaling 2.6
bln drams. Demands to banks and other financial orgnaizations also
decreased by 14%, totaling 28.3 bln drams. In the structure of assets,
a 15.4% and 10.2% growth was registered in the crediting of natural
persons and legal entities, which made up 41.7 bln drams and 70.9 bln
drams respectively. A 7.6% growth was registered in investments in
state securities (36.3 bln drams), a 6.8% growth in correspondent
accounts at banks (63.4 bln drams), a 5.3% growth on the calculated
interests (1.9 bln drams).

In the second quarter of 2004 in the crediting portfolio, a 23.4%
growth was registered in investments in the sphere of transport and
communications (crediting totaling 1.02 bln drams on June 30), a 7.7%
growth in the trade sector (24.9 bln drams), 7.4% (8.9 bln drams)in
the agricultural sphere, a 12.3% (32.9 bln drams) in the financial
sector, a 18% growth (32,9 bln drams) in the volume of consumer
credits. At the same time, a 4.7% decline was registered in the
construction sector (5.1 bln drams).

Credits and receivables classified on risk groups decreased by 1.3% in
the second quarter of 2004, totaling 213.3 bln drams. As a result, on
June 30, “standard” credits totaled 97.7% or 208.5 bln drams,
“controlled” credits – 1.4% or 2.9 bln drams, “nonstandard” credits –
0.7% or 1.5 bln drams and “doubtful” credits – 0.2% or 379.9 mln
drams. In the quarter under review, some decline was fixed on all the
groups, with the most significant being on “doubtful” credits (64.7%).

According to the ranking of Armenian’s commercial banks drawn up by
ARMINFO news agency, in the first half of 2004 the general assets of
13 commercial banks increased, the highest growth was fixed on 3
banks, including Artsakhbank (40%). As to the remaining 6 banks, their
assets decreased, with one bank showing the lowest indicator (37.6%).

According to data of the Armenian CB, by June 30, 2004, 20 banks and
221 branches operated in the territory of Armenia, with one operating
in the special administrative regime of the Armenian CB. The results
of the activity of the country’s banking system were summed up on July
1, 2004 on the basis of data of 19 normally operating commercial
banks.