ACCUMULATED PROFITS OF THE ARMENIAN BANKING SYSTEM UP 10% TO $198.4 MLN IN 2009

ArmInfo
03.03.2010

ArmInfo. The accumulated profits of the Armenian banking system were
up 10% (8.8% for Q4) to 75 bln drams ($198.4 mln) on Dec 31 2009. The
share of accumulated profit in total capital was 26%. Out of 22
commercial banks 20 accumulated a total of 77.1 bln drams positive
profits ($204 mln). The remaining two banks generated negative profits
in the amount of 2.1 bln drams ($5.6 mln) in total.

Analysis and Rankings of the Armenian Banking System prepared by
Agency of Rating Marketing Information (ArmInfo) say ACBA-Credit
Agricole Bank was the leader by the accumulated profits in the amount
of 12.9 bln drams or $34.1 mln (45.3% growth per year and 12.4% for
Q4). HSBC Bank Armenia was the second by 9.3 bln drams or $24.6 mln
(27.2% decline per year and 7.5% growth for Q4), Converse Bank was
the third by 8.1 bln drams or $21.4 mln (12.6% decline per year and
1.9% growth for 1.9%), Ardshininvestbank accumulated 7.9 bln drams or
$20.9 mln profits (25.3% growth per year and 4.9% for Q4), and VTB
Bank Armenia accumulated profits in the amount of 7.2 bln drams or
$19.1 mln (21.1% growth per year and 62.4% growth for Q4). BTA Bank
suffered the largest loss in the amount of 1.5 bln drams or $3.9 mln
up 7% per year and 38.9% for Q4).

Out of 22 commercial banks 17 ensured annual growth of accumulated
profits (in 2009 versus 2008). Cascade Bank ensured the highest growth
of accumulated profits per year from the negative 321 million drams to
positive 91.5 mln drams. Accumulated profits of Mellat Bank suffered
76.6% decline to 121.4 mln drams. The amalgamation of Cascade Bank and
Cascade Credit Universal Loan Company was over in late July 2009. In Q4
2009 the accumulated profits of 18 banks grew. Cascade Bank increased
accumulated profits more than twice, whereas Mellat Bank showed 67.8%
quarterly decline of accumulated profits.