In the first half of 2024, Armenian banks achieved unprecedented growth in return on equity (ROE), reaching 21.9%. However, even this historic high falls slightly short of the Georgian banking sector, where ROE stands at 23.5%.
According to an analysis by the Union of Banks of Armenia, the country’s banking system has historically shown modest profitability. From 2012 to 2022, the average ROE of Armenian banks was only 7%, which is notably lower not only than comparable countries but also below the global average of 9-10%.
In contrast, the Georgian banking sector demonstrated significantly higher efficiency over the same decade, with an average ROE of 17.5%. This disparity between the two neighboring countries has attracted particular interest from experts.
The Union of Banks of Armenia plans to regularly publish similar comparative analyses of the banking sector’s performance with that of comparable countries. The reported statistics are based on official data from the banking systems of both countries.
