Quarterly slackening of growth rates of accumulated profits of Armenian banks has been observed in 2012.

Yerevan. Quarterly slackening of growth rates of the accumulated profits of the Armenian banks has been observed in 2012.

The analyst of the Agency of Rating Marketing Information (ArmInfo ) say the accumulated profits of the banking system grew 12.6%

for 9 months of 2012. In the Q1 2012 this indicator grew 11.5%, in the Q2 - 4% and amid 1% decline in Q3. Accumulated profits of the

banking system totaled 115.5 bln drams ($284.4 mln) as of Sept 30 2012 falling 12.8% versus 19% growth for the same period of 2011.

The share of accumulated profits in total capital was 29.7% versus 30.1% for Q2 2012 and 25.4% for Q3 2011. Accumulated profits of

18 banks totaled 118.6 bln drams ($292 mln) as of Sept 30 2012, while this indicator of 3 banks was at the negative level totaling 3.1 bln

drams ($7.5 mln).

The leader in terms of the accumulated profits is still HSBC Bank Armenia - 15.8 bln drams or $38.9 mln (10.4% decline

versus 9 months of 2011 and 26,8% decline versus Q2). Then goes Ardshininvestbank with 15.2 bln drams or $37.4 mln accumulated

profits (up 34.2% and 14.3%, respectively). VTB Bank (Armenia) is the third with 11,8 bln drams or $29 mln (downs 3% and 2.1%,

respectively). Ameriabank is the fourth with 10.4 bln drams or $25.6 mln (up 28.1% and down 6.1%, respectively). And ACBA-Credit

Agricole Bank is the fifth with 9.4 bln drams or $23.2 mln (up 87.4% and 12.2% respectively).

The share of the top five banks in total accumulated profits of the banking system is 54.2% (with 50% being the share of the

first four banks, with domination of HSBC Bank) versus 57% in Q2 2012 and 56.2% in Q3 2011. The annual decline of the given

indicator is a result of the falling profits of two of the top five banks.

The analysts explain the slackening of the growth rates of accumulated profits with general trends in the system, specifically

writing-off of non-performing loans, decline in the yield of assets and the expenses on expansion of the branch network.

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