NET PROFIT OF ARMENIA’s BANKING SYSTEM TO TOTAL 9.4BLN AMD BY 2005
YEREVAN, AUGUST 16. ARMINFO. The net profit of Armenia’s banking
system is expected to make up 9.4bln. AMD by 2005, and 11.1bln. AMD by
2007. Bankers forecast that almost all profit expected by 2005 will be
directed to increasing the capital. Only three banks intend to pay
dividends totaling 290.3mln. AMD before July 1, 2005.From that time,
three other banks are to perform this operation, and their dividends
are to amount to 2.4bln. AMD.
If the forecast profit and carrying amounts are ensured by 2005, the
ROA of Armenia’s banking system will make up 2.8% and the ROE 24.2%.
According to bankers, changes in the income-expense structure of the
country’s banking system will be caused by further reduction of
interest rates, increase in the share of assets, improvement of the
credit portfolio and introduction of modern technologies as a result
of a necessity for new banking services.
According to bankers, in the incomes structure, interest incomes will
increase from 26.4bln. AMD to 33.7bln. AMD and noninterest incomes
from 13.8bln. AMD to 17.2bln. AMD January 1, 2005 to January 1,
2007. In the expenses structure, interest expenses are expected to
increase from 8.9bln. AMD to 10.8bln. AMD and noninterest expenses
from 18.1bln. AMD to 22.3bln. AMD. As a result, incomes are expected
to total 51.4bln. AMD and expenses 40bln. AMD by 2005, and
64.3bln. AMD and 49.2bln. AMD respectively by 2007. As a result, the
balance profit is expected to increase from 11.4bln. AMD to
15.1bln. AMD.
According to the RA Central Bank, the net profit of Armenia’s banking
system totaled 4.3bln. AMD in the first half of 2004. By June 1, 2004,
the total capital had been 55.7bln. AMD, assets 310.9bln. AMD. In the
first half of 2004, total incomes were 25.6bln. AMD, and total
expenses 20.2bln. AMD. As a result, balance profit totaled
5.3bln. AMD.