UAB Positive About Armenian Commercial Banks Activity In 2010 First


May 13, 2010 – 14:50 AMT 09:50 GMT

Chairman of the Union of Armenian Banks (UAB) Ararat Ghukasyan said
that as a whole the commercial banks’ activity is estimated positively
in the first quarter of 2010.

"Growth was recorded in all indices of the country’s banking system,"
Ghukasyan told a press conference in Yerevan on May 13.

According to him, the banks’ profit totaled AMD 6.7bln by the end
of the first quarter, which is considerably higher as compared with
2009 data.

Meanwhile, the banks have fulfilled their commitments to the state
and the total amount of paid taxes made 4.4bln.

Ararat Ghukasyan said that the RA banking system assets increased by
5.3% during the reported period, amounting to one trillion and 418bln
that is 24% higher as compared with the first quarter of 2009.

7.47% or 54bln growth was recorded in credit investments by the end
of the first quarter that is also higher as compared with the same
period of last year. And the total credit portfolio amounted to 777bln.

"19.44% growth was recorded in the banking system’s credit portfolio
as compared with the same period of last year," Mr. Ghukasyan said.

He added that, according to the Credit Bureau, Armenian banks granted
150,000 credits, while consumer credits have major share in them.

Positive trends were recorded also for overdue credits. "Their share
in the total amount of credits totaled 8-10% by the end of 2009,
while currently this index has reduced to 5%, thus a significant
improvement was recorded here," Ghukasyan said.

The UAB Chairman noted that total obligations of the banking system
increased by 5.95% and 25% as compared with the fourth and first
quarters of 2009 respectively. According to him, obligations to
clients made around 34.91% among other obligations.

Positive trends were recorded also in the aggregate capital – 3%
growth was recorded in it as compared with the end of 2009.

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