According to the November 2024 Monthly Economic Review by the World Bank, Armenia’s banking sector is demonstrating steady growth and maintaining strong financial stability. The most notable progress is observed in the dram-denominated segment of banking operations.
In September of this year, both the deposit and loan portfolios of commercial banks experienced growth. Deposit volumes increased by 0.9% month-on-month, while the loan portfolio showed a more significant rise of 2.2%. On an annual basis, adjusted for exchange rate fluctuations, deposits grew by 11.1%, and loans surged by an impressive 21.3%.
Notably, the loans-to-deposits ratio increased from 0.9% in September 2023 to 1.0% in September 2024.
Key indicators of the sector’s financial stability also deserve attention. The capital adequacy ratio saw a slight increase of 0.1 percentage points, reaching 20.4%. The banking system continues to maintain a high-quality loan portfolio, with the share of non-performing loans remaining low at 1.2%, while return on assets remains stable at 4.5%.
