ASSETS OF ARMENIAN BANKING SYSTEM UP 11% FOR FIRST HALF OF 2009
ArmInfo
2009-08-18 20:10:00
ArmInfo. Assets of the Armenian banking system were up 10.5% for the
first half of 2009 and 26% per year. As compared to the same period
of 2005, this indictor grew almost trice and totaled 1.145 trillion
drams ($3.2 billion).
Analysis and Ranking of the Armenian Commercial Banks prepared by
the Agency of Rating Marketing Information (ArmInfo) says assets
grew per year as provision of crediting increased 20%, funds of
nostro-accounts grew 54%, cash grew significantly and investments
in government securities fell 30% per year. Assets grew just 0.3%
over the second quarter of 2009 due to the 3% decline of the credit
portfolio and 17% decline of investments in government bonds, as well
as 63% quarterly growth of funds on nostro-acounts (exclusive of
correspondent accounts at the Central Bank of Armenia) (versus 13%
decline for the 1st quarter) and 3.5% growth of cash (versus 34%
growth for the 1st quarter).
The share of credits and investments in government bonds in the
structure of assets totaled 57.3% (versus 59.2% for 1Q of 2009) and
4.7% (versus 5.6% for 1Q of 2009) as well as 60.3% and 8.4% for the
first half of 2008 respectively. The dynamics shows that the share
of investments in government bonds in assets halved per year whereas
the share of credits fell less significantly. Experts explain that in
the background of the global crisis, Armenian banks are maintaining
crediting rates mostly focusing on economic sectors and providing
less retail loans through selling the portfolio of government bonds,
funds on nostro-accounts and cash. ACBA-Credit Agricole Bank, HSBC
Bank Armenia and Ardshininvestbank are top three leaders by assets
as of June 30 3009.
Real crediting totaled 656.4 billion drams ($1.8 billion) as of June
30 2009, which was 57.3% of assets. The share of credits provided
to the economic sectors made up 57% of total or 374.2 billion drams
($1 billion).
This indicator grew over twice per year and fell 6% for 2Q, as
well as grew almost trice versus the same period of 2005. Summary
retail lending by commercial banks grew 84% per year, 0.5% for 2Q,
as well as grew over 4 times versus the same period of 2005. As of
June 30 2009 this indicator totaled 260.6 billion drams or $723.8
million (40% of total). Unlike previous years, in 2008-2009 retail
lending growth rate yielded to the growth rates of lending to the
economic sector due to the financial crisis that made the banks more
careful and restraint in retail lending (consumer, mortgage and auto
loans). Instead, the banks have become more active in lending to
SMEs, trade and even agricultural sectors. Since the 1Q of 2009 only
few banks have provided retail lending and on refinancing terms only
(to bonafide clients). Thus, banks provided the largest loans to the
following sectors of economy: agriculture – 24.9%, industry (10.1%),
construction – 11.7%, and service – 6%. In the structure of retail
lending, the mortgage portfolio of the banks grew only 0.4% for the
first half of 2009 whereas provision of auto loans fell 25%.
Top three of leaders by loans provided to the economy sectors comprises
ACBA-Credit Agricole Bank – 44 billion drams or $122 million inclusive
of agricultural loans (51% of total loans), VTB Bank Armenia – 41.3
billion drams or $114.8 million (61.2% of total) and HSBC Bank Armenia
– 38.5 billion or $107 million (56.6% of total). ProCredit Bank that
entered the banking market in February 2008 has ensured the largest
share of loans to the economic sector for the first half of 2009 – 93%
or 8 billion drams (the 14th position). Mellat Bank ensured the lowest
share of loans to the economic sector – 25.2% or 1.1 billion drams.
ACBA-Credit Agricole Bank is the leader by retail lending – 42.3
billion drams or $117.5 million (48/9% of total credits). HSBC Bank
Armenia is the second by 29.4 billion drams or $81.7 million and
VTB- Armenia is the third by 25.7 billion drams or $71.4 million
(38.1%). Mellat Bank is the leader by the share of retail lending in
total – 74.8% or 3.2 billion drams (the 19th position). Areximbank is
the third by the share of retail lending in total – 55% or 10.3 billion
drams due to its leading position in the market of auto loans (the
third position for the first half of 2009 despite the 20% decline). The
bank invested 25% of the credit portfolio or 4.7 billion drams in the
auto lending which is almost 12% of the aggregate portfolio of auto
loans of the commercial banks. In addition, Areximbank has become
rather active in the mortgage market increasing mortgage lending
30% for the first half of 2009 including almost 20% over the 2Q of
2009. ProCredit Bank specializing in lending to SMEs ensured the
lowest share of retail lending in total – 7% or 0.6 billion drams.
From: Emil Lazarian | Ararat NewsPress
