The World Bank’s monthly economic development review highlights positive dynamics in Armenia’s banking sector.
In October, deposits in commercial banks grew by 1.3%, primarily driven by deposits in Armenian drams. At the same time, the volume of bank loans increased by 2.2%.
Compared to the previous year, accounting for exchange rate fluctuations, deposits grew by 11%, while lending expanded by 23%. Notably, two-thirds of this growth came from mortgage loans, consumer loans, and loans to the construction sector.
The financial performance of the banking system remains stable. The capital adequacy ratio saw a slight increase of 0.1 percentage points, reaching 20.5%. The share of non-performing loans remains low at just 1.2%, while the return on assets stands at 4.5%.
