HSBC BANK ARMENIA, CONVERSE BANK AND ARDSHININVESTBANK HAD LARGEST
LEVEL OF NET PROFIT DURING FIRST HALF OF 2004

YEREVAN, AUGUST 3. ARMINFO. HSBC Bank Armenia, Converse Bank and
Ardshininvestbank had the largest level of net profit during the first
half of 2004 – 964.9 mln drams, 852.9 mln drams and 551.9 mln drams
respectively. According to the ranking of commercial banks of Armenia
formed by specialists of ARMINFO on the basis of financial reports of
commercial banks and data provided by the banks, Armeconombank ranks
the fourth as regards this showing – 526.6 mln drams, and the
Armsavingsbank ranks the fifth – 417.7 mln drams. At the same time as
regards the level of efficiency of investments the INECOBANK is in the
lead, then follow the Converse Bank, Armeconombank, Ardshininvestbank,
Anelik Bank, ACBA and Unibank.

Thus, the share of net profit in the assets (ROA) of the INECOBANK
totaled 4.21%, of the Converse Bank – 2.78%, Armeconombank 2.43%,
Ardshininvestbank 2.06%, Anelik Bank 2.02%, ACBA 1.74% and Unibank
1.45%. The Converse Bank is in the lead as regards the showing of net
profit in the capital (ROE) – 21.49%, then follow HSBC Bank Armenia –
17.91%, INECOBANK 17.59%, Armeconombank 15.37%, Armsavingsbank 13.51%,
Ardshininvestbank 13.14%, Anelik Bank 12.23% and Artsakhbank
8.78%. Noteworthy, the indices of the Anelik bank include the data of
the Moscow branch, which was reorganized to Daughter Bank Anelik RU in
Dec 2003.

Total net surplus of the banking system of Armenia was 4.320 bln drams
during the first half of 2004. According to data of 19 banks, 16 banks
had worked with profit, their total net surplus was 5.020 bln drams. 3
banks completed the accounting period with losses, which totaled
699.287 mln drams.

During the first half of 2004 the total capital of the banking system
grew by 11.4% – from 50.024 bln drams to 55.729 bln drams. In this
period, as regards the showing of replenishment of the total capital
the Armenian Development Bank is in the lead (40.18%), then follow
Areximbank (39.89%), Armsavingsbank (19.11%), Converse Bank (17.59%)
and INECOBANK (16.04%).

During the first half of 2004 assets of the banking system increased
by 11.19% – from 287.2 bln drams to 319.3 bln drams, which was
accounted for by the growth of provision of crediting and investments
in STBs. Volume of real provision of crediting increased by 14.17% –
from 125.0 bln drams to 142.7 bln drams, making up 44.69% out of the
assets. By July 1, 2004 the share of the credits to legal entities
made up 54.13% in total provision of crediting or 77.3 bln drams,
increasing by 13.54% during the first half of 2004. The largest level
of crediting of legal entities has been provided by the Armsavingsbank
– 11.3 bln drams, Converse Bank 10.8 bln drams, Ardshininvestbank 8.6
bln drams, Artsakhbank 5.7 bln drams, Armimpexbank 5.1 bln drams ACBA
4.5 bln drams, Anelik Bank 4.2 bln drams, Armeconombank 4.1 bln drams
and ADB 3.1 bln drams. As regards the volume of crediting to natural
persons the ACBA is in the lead (9.6 bln drams), Ardshininvestbank
ranks the second (5.9 bln drams) and Armeconombank (5.7 bln drams). In
the structure of assets during the first half the volume of funds in
correspondent accounts in the banks decreased – from 68.6 bln drams to
68.1 bln drams, the share of which int he assets decreased from 23.9%
to 21.3%.

In Jan-June the investments in state loan bonds increased by 16.82%,
reaching 36.5 bln drams by July 1, 2004. The most growth were provided
by the Armsavingsbank (196.51%), Anelik Bank (143.66%), Unibank
(94.11%), ACBA (85.32%) and Ardshininvestbank (66.78%). By the way, 6
banks out of 19 reduced their investments in state securities in the
period under review, in particular, Areximbank reduced by 88.99%,
Arminvestbank – by 75.98%, ADB 36.5%, Converse Bank 14.59%, ITB 10.2%
and Mellat bank – 3.27%.

According to the data of 19 banks of the country, total liabilities of
the banking system, increasing by 11.15% reached 263.6 bln drams by
July 1, 2004. In their structure fixed deposits increased by 4.64%,
totalling 84.1 bln drams or 31.88% in total liabilities.

The share of the total capital of the banking system in GDP (600 bln
drams – by July 1, 2004) totaled 9% (55.7 bln drams), the assets- 53%
(319.3 bln drams), and the volume of provision of crediting – 24%
(142.7 bln drams). By Jan 1, 2004 these indices made up 3%, 18% and 8%
respectively.