The financial system of Armenia remains healthy, with the share of non-performing loans (NPLs) in the total volume decreasing. This is reported in the monthly review of Armenia's economic development, published by the World Bank (WB).
According to the report, the NPL ratio decreased from 2.5% in February to 1.2% in March 2024. This reduction is attributed to a significant write-off of non-performing loans by one of the banks.
The return on assets increased slightly in March 2024, reaching 4.2%. The capital adequacy ratio also saw a modest rise, reaching 19.7% compared to 19.2% in February.
The total volume of deposits grew by 0.6% compared to the previous month, mainly due to an 0.8% increase in deposits in the local currency. At the same time, loans decreased by 0.7% due to a 2.7% decline in foreign currency loans.
"As a result, the loan dollarization ratio decreased from 36.6% in March 2023 to 34% in March 2024," the WB report states.
