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Banks of Armenia actively continue crediting trade sector.

Yerevan. The banks of Armenia actively continue crediting the trade sector, industry, construction, and agriculture. Mortgage

and car loans, which were in the lead, now hold the second position.

According to the Ranking of Armenian Banks by the Agency of Rating Marketing Information (ArmInfo), the first position

belongs to lending to the trade sector - 22.6% or 340 bln AMD ($837 mln). Ameriabank provided most part of the loans (50.7 bln

AMD). The following banks rank next: HSBC Bank Armenia (42.2 bln AMD), ACBA-Credit Agricole Bank (31.5 bln AMD), VTB

Bank (Armenia) (31.2 bln AMD) and INECOBANK (25.3 bln AMD). Over Jan-Sept 2012, 16 out of the 21 commercial banks of

Armenia demonstrated growth in this indicator. The biggest growth was in Ardshininvestbank - almost threefold (up from the 12th to the

6th position over Jan-Sept 2012), and the biggest decline was in Anelik Bank - by 14.4% (down from the 11th to the 16th position).

The second position belongs to consumer loans. As of 30 Sept 2012, consumer loans amounted to 296 bln AMD ($729 mln), or

19.7% of the total provision of crediting (18.5% growth for Jan-Sept 2012). The top five leaders in consumer lending includes VTB Bank

(Armenia) - 46.9 bln AMD, ACBA-Credit Agricole Bank - 36.4 bln AMD, Ardshininvestbank - 35.3 bln AMD, Unibank - 34.4 bln

AMD and Converse Bank - 20.6 bln AMD. 20 out of 21 banks ensured growth in consumer lending for Jan-Sept 2012. ArmSwissBank

demonstrated the biggest growth (almost 4-fold, up from the 20th position to the 19th position), and Converse Bank was the only bank to

demonstrate decline (by 25.2%, down from the 3rd to the 5th position). Mellat Bank registered the biggest share of consumer loans in

the loan portfolio (48.5%), with most of the loans being mortgages.

The loans to the industrial sector hold the third position - 283.4 bln AMD, or $697.6 mln (18.8% of the total loan portfolio).

Over Jan-Sept 2012, this index was up 9.4%. Ameriabank ensured the biggest lending to the industrial sector (41.3 bln AMD). The

following banks rank next: Areximbank-Gazprombank Group (37.2 bln AMD), Ardshininvestbank (31.7 bln AMD), ACBA-Credit

Agricole Bank (31.5 bln AMD) and HSBC Bank Armenia (27.5 bln AMD). 16 out of 21 banks ensured growth for Jan-Sept 2012. Mellat

Bank demonstrated the biggest growth (more than twofold, up from the 21st position to the 20th position). VTB Bank (Armenia)

demonstrated the biggest decline (by 44.4%, down from the 5th to the 8th position).

Construction is the fourth with 6.9% of the banks' loans or 103.2bln AMD ($254mln). Armbusinessbank lent the sector some

14.1bln AMD, HSBC Bank Armenia 12.6bln AMD, Ameriabank 10.6bln AMD, VTB Bank (Armenia) 8.6bln AMD, Ardshininvestbank

8.3bln AMD. 11 of 21 banks registered growth in lending, with Mellat Bank redoubling its portfolio. Byblos Bank Armenia and BTA

Bank stopped lending money to the sector. 8 banks lent less than a year before, with Anelik Bank showing the biggest decline - 43.3%.

The fifth is agriculture - a sector where most of the banks headed for once consumer lending became risky. In Apr 2011 the

government started subsidizing agricultural lending. The program involves Ardshininvestbank, Converse Bank, ACBA-credit Agricole

Bank, Procredit Bank and Artsakh Bank. 87.2bln AMD or $214.6mln (5.8% of all loans) was lent to the sector in Jan-Sept 2012, wherein

the share of ACBA-Credit Agricole Bank is 47% or 40.8bln AMD. Ardshininvestbank lent 7.3bln AMD, Armbusinessbank 4.3bln AMD,

Procredit Bank 3.9bln AMD and Armeconombank 3.7bln AMD. Araratbank, Armenian Development Bank, ArmSwissbank and

Prometey Bank registered growth in agricultural lending, Ameriabank recorded a 26.8% decline.

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Publication:ArmInfo - Business Bulletin
Geographic Code:4EXAR
Date:Jun 7, 2015
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