Chairman Of Union Of Armenian Banks Says Banks Will Close The Year W

CHAIRMAN OF UNION OF ARMENIAN BANKS SAYS BANKS WILL CLOSE THE YEAR WITH PROFITS

ARKA
Aug 25, 2009

YEREVAN, August 25, /ARKA/. Emil Soghomonyan, chairman of the Union of
Armenian Banks, said today Armenian banks are set to close the year
with profits. According to him, the banks earned in the first six
months of the year 4.3 billion AMD (about $12 million) in profits,
much less from a year before.

"In 2008 Armenian banks earned 28 billion Drams. If last year’s trend
were maintained, Armenian banks should have earned in the first half
of 2009 some 14 billion AMD,’ he explained.

According to him, the main reason behind losses was the Central Bank’s
decision to revert to the floating exchange rate of Armenia’s national
currency as a result bank accounts in U.S. dollars depreciated steeply
within one day.

Armenian Central Bank reverted to the floating exchange rate on
March 3.

Central Bank experts estimate that the average weighted exchange rate
of Armenian Dram against U.S. Dollar may fluctuate between 360-380
Drams per one Dollar. Despite these developments, Soghomonyan said
he does not expect the banking sector to close the year with losses.

According to ARKA news agency, there are 22 banks in Armenia with
378 branches and with aggregate assets of 1.145 trillion Drams;
their aggregate capital stands at 256.4 billion Drams, liabilities
at 885.5 billion Drams.

The banks’ net profit after=2 0tax in 2009 Jan.-June totaled 4.356
billion AMD, down from 12.9 billion Drams year-on-year. ($1- 375.28
Drams).