armenian banking sector overview

Armenian

Banking Sector

Overview

2014 Results

(non audited)

February 2015

Basis of Preparation 2

At a Glance 3

Sector Highlights 4

Bank Profiles 5

Appendix 1: Shareholding Structure & General Information 26

Appendix 2: Sector Insights 28

Appendix 3: Key Financial Indicators 32

Appendix 4: Bank Contact Details 36

KPMG Experience in the Armenian Banking Sector 38

Abbreviations 39

Glossary of Terms 40

Contents

Basis of Preparation

This report summarizes and analyzes the financial results of the 21

commercial banks of Armenia for the 4th

quarter of 2014, as well as

provides some insights into the recent developments in the sector.

The financial information has been obtained from the published interim

reports for the 4th

quarther of 2014. The banks are listed in the

alphabetical order throughout the publication. We have used simple

headline numbers in our analysis unless stated otherwise; each bank has

its own way of reporting performance and this has proved to be the most

consistent method of presenting their results.

All the key ratios are calculated based on the obtained data unless stated

otherwise. There were some changes made to the methodology of

calculation of certain ratios, which are stated in the text. Hence, one shall

consider this while comparing the ratios reported herein with those of our

previous publications.

The general information, such as the number of branches, employee

headcount, etc, are mainly taken from the Notes to the Financial

Statements prepared by the banks. The official websites of the banks

serve as the only alternative source, however they are not always

properly updated. Due to this, the figures presented may not necessarily

be as of 31 December 2014. There may be figures more up to date or of

an earlier date depending on the latest available information published by

the banks.

The main source of news is the official websites of the banks and the

Central Bank of Armenia, as well as the official press releases published

by various news agencies.

© 2015 KPMG Armenia cjsc. All rights reserved. 3

At a Glance

Key Financial Indicators of the Armenian Banking Sector (in million AMD)

Top Ten Banks of the Armenian Banking Sector as of 31 December 2014 (in million AMD)

* The indicators of the financial position are as of the last day of the corresponding period.

** Loan portfolio includes loans and the receivables from letters of credits, finance lease and factoring.

*** Deposits include current accounts.

**** Net operating income is before provisions and administrative expenses.

The banking system remains the biggest part of the Armenian financial market. As of 31 December 2014, there were 21

commercial banks operating in the Republic of Armenia. They had 511 branches in Armenia and in Nagorno Karabakh,

from which 224 were located in Yerevan. The total number of employees in the Armenian commercial banks was about

11,915.

Key Financial Indicators* 2014 2013 Change (2014/2013)

Assets 3,410,584 2,938,589 16.1%

Interest Earning Assets 2,603,941 2,182,168 19.3%

Gross Advances to Customers 2,350,111 1,946,297 20.7%

Loan portfolio** 2,162,966 1,784,663 21.2%

Liabilities 2,921,841 2,469,388 18.3%

Deposits*** 1,701,080 1,623,247 4.8%

Equity 488,743 469,201 4.2%

Charter Capital 272,640 245,562 11.0%

Total Income 353,459 320,401 10.3%

Interest Income 288,677 264,355 9.2%

Non-Interest Income 28,766 24,485 17.5%

Net Interest Income 140,242 131,503 6.6%

Net Non-Interest Income 21,025 17,810 18.1%

Net Operating Income**** 197,283 180,874 9.1%

Operating Expenses (107,315) (100,901) 6.4%

Net Provision Expenses (53,216) (20,121) 164.5%

Net Profit before Taxes 36,752 59,852 -38.6%

Net Profit after Taxes 27,155 46,292 -41.3%

Other Comprehensive Income (11,707) 15,410 -176.0%

Total Comprehensive Income 15,448 61,701 -75.0%

-10,000

0

10,000

20,000

30,000

40,000

50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Ameria VTB ASHIB HSBC ACBA ABB Unibank Ineco Converse Ararat

Assets Loans Deposits Equity Total Income (right axis) Net Profit (right axis)


Liquidity

25.1%

Loan

portfolio/

deposits

1.27

Sector Highlights

Compared with the 2013, the banking system assets grew by 16.1% and

reached AMD 3,410.6 billion as of 31 December 2014.

For the year ended 31 December 2014 the return on assets (ROA)* for the

Armenian banking system was 0.9%, which decreased by 0.9 percentage

points compared with the same date of 2013.

During the fourth quarter of 2014 there were some changes in the list of

Top 10 Banks in Armenia by assets with "AraratBank" OJSC entering the

list and "AreximBank-GazPromBank Group" CJSC leaving the Top 10 Banks

list. Also "Ardshinbank" CJSC, "HSBC Bank Armenia" CJSC and "InecoBank"

CJSC moved up by 1 position each and "Converse Bank" CJSC and "ACBA-

Credit Agricole Bank" CJSC moved down by 1 and 2 positions respectively

in the ranking.

As of 31December 2014 the total amount of outstanding loans disbursed

grew by 21.2% compared with the same date of 2013 and reached AMD

2,163.0 billion.

For the year ended 31 December 2014 the ratio of loan portfolio to total

assets for the Armenian banking system was 63.4%. According to the

CBA, as of 31 December 2014 the Armenian banking system liquidity ratio

was 25.1%.

For the reported period the total net provision expenses of the Armenian

banking sector increased by 164.5% compared with the same period of the

2013, and amounted to AMD 53.2 billion.

The outstanding balance of deposits as of 31 December 2014 increased by

4.8% compared with the same date of 2013, reaching AMD 1,701.1

billion.

As of 31 December 2014 the loan portfolio/ deposit ratio for the Armenian

banking system was 1.27.

As of 31 December 2014 the total equity of banks reached AMD 488.7

billion, which exceeded the same indicator as of 31 December 2013 by

4.2%.

For the year ended 31 December 2014 the return on equity (ROE)* for the

Armenian banking system was 5.7%. The ratio of equity to assets as of the

reported date was 14.3%. According to the CBA, the capital adequacy ratio

of Armenian banking system was 14.5%.

During the year ended 31 December 2014, the banking system had total

income of AMD 353.5 billion, which exceeded the total income for the

2013 by 10.3%. For the period ended 31 December 2014 the net interest

margin* for the Armenian banking system was 5.9%. The cost to income

ratio for the reported period was 54.4%.

The net profit before taxes of the banks for the year ended 31 December

2014 was AMD 36.8 billion.

The net profit after taxes of the banking system for the year ended 31

December 2014 was AMD 27.2 billion, which is lower by 41.3%,

compared with the same date of 2013.

For the year ended 31 December 2014 the profit margin for the Armenian

banking system was 7.7%.

* Please refer to the Glossary of Terms for the methodology of calculation

of this ratio.

16.1%

Assets

21.2%

Loans

4.8%

Deposits

4.2%

Equity

Total

income

10.3%

41.3%

Profit

ROA

0.9%

ROE

5.7%

Capital

adequacy

14.5%

NIM

5.9%

Cost/

income

54.4%

PM

7.7%


Bank Profiles

ACBA – Credit Agricole Bank

Key Financial Indicators*


Key Indicators of the Financial Position

Key Ratios**

Key Indicators of the Financial Results

Rankings

5th

rank by the assets

1st

rank by the charter capital

2nd

rank by the total income

Among the top ten banks by almost all financial

indicators.

** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.

October November December

New branch was opened in Erebuni, Yerevan

-

50,000

100,000

150,000

200,000

250,000

300,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 286,410 267,683 8.4% 5 7.0%

Interest Earning Assets 213,669 203,776 8.2% 5 4.9%

Loan Portfolio 179,530 169,282 8.3% 6 6.1%

Liabilities 237,039 213,533 8.1% 6 11.0%

Deposits 123,666 107,880 7.3% 6 14.6%

Equity 49,371 54,150 10.1% 1 -8.8%

Charter Capital 30,000 30,000 11.0% 1 -

Total Income 36,985 33,904 10.5% 2 9.1%

Interest Income 28,759 28,775 10.0% 2 -0.1%

Net Provision Expenses (14,739) (1,472) 27.7% 1 901.4%

Net Profit after Taxes (4,625) 4,999 - 20 -192.5%

Total Comprehensive Income (4,779) 5,288 - 20 -190.4%

Change,Amount, mln AMD

Share in total,

%

Rank

(20,000)

(10,000)

-

10,000

20,000

30,000

40,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

-1.7%

-8.9%

7.2%

-12.5%

17.2%

62.7%

53.2%

25.2%

13.6%

-20% 0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets

Loan Portfolio/Assets

Cost to Income Ratio

Liquidity

Capital Adequacy


Bank Profiles (continued)

Ameriabank


Rankings

1st

rank by the assets

1st

rank by the loan portfolio

1st

rank by the deposits

2nd


4th


1st

rank by the net profit after tax

1st

rank by the total comprehensive income


indicators.

Key Indicators of the Financial Position Key Indicators of the Financial Results


Key Ratios**



-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 399,744 315,048 11.7% 1 26.9%


Loan Portfolio 300,359 185,100 13.9% 1 62.3%

Liabilities 357,389 276,342 12.2% 1 29.3%

Deposits 208,697 169,942 12.3% 1 22.8%

Equity 42,355 38,706 8.7% 5 9.4%

Charter Capital 25,448 25,448 9.3% 2 -

Total Income 33,572 27,736 9.5% 4 21.0%

Interest Income 27,712 22,769 9.6% 3 21.7%

Net Provision Expenses (1,731) (1,960) 3.3% 8 -11.6%

Net Profit after Taxes 7,149 6,057 26.3% 1 18.0%

Total Comprehensive Income 6,599 6,433 42.7% 1 2.6%

Amount, mln AMD

Share in total,

%

Rank

Change,

(5,000)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

2.0%

17.6%

5.4%

21.3%

10.6%

75.1%

46.4%

26.5%

13.1%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Anelik Bank




Key Ratios**



The bank was awarded ISO 9001: 2008 quality

management system international certification

-

20,000

40,000

60,000

80,000

100,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 87,034 60,029 2.6% 14 45.0%


Loan Portfolio 58,615 38,597 2.7% 13 51.9%

Liabilities 72,629 46,959 2.5% 14 54.7%

Deposits 48,531 33,237 2.9% 13 46.0%

Equity 14,405 13,070 2.9% 14 10.2%

Charter Capital 11,816 10,816 4.3% 10 9.2%

Total Income 8,501 6,280 2.4% 16 35.4%

Interest Income 6,383 5,407 2.2% 17 18.0%

Net Provision Expenses 159 (648) - 20 -124.5%

Net Profit after Taxes 335 (1,444) 1.2% 15 -123.2%

Total Comprehensive Income 335 (1,444) 2.2% 12 -123.2%

Amount, mln AMD

Share in total,

%

Rank

Change,

(2,000)

-

2,000

4,000

6,000

8,000

10,000

Total

Income

Interest

Income

NPE NPT

2014 2013

0.5%

2.4%

3.7%

3.9%

16.6%

67.3%

90.6%

17.5%

12.9%

0.0% 50.0% 100.0%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Araratbank




Key Ratios**

** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.** The capital adequacy and liquidity ratios are taken from the key prudential ratios reported by the bank as of the end of the reporting period.


New branch was opened in Yerevan State

University main building, Yerevan

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

Rankings

5th


2014 2013 2014/2013

Assets 138,830 125,236 4.1% 10 10.9%


Loan Portfolio 65,771 59,594 3.0% 11 10.4%

Liabilities 117,058 105,604 4.0% 10 10.8%

Deposits 64,768 68,542 3.8% 9 -5.5%

Equity 21,771 19,633 4.5% 10 10.9%

Charter Capital 6,388 6,388 2.3% 19 -

Total Income 13,722 13,351 3.9% 10 2.8%

Interest Income 11,083 10,892 3.8% 10 1.8%

Net Provision Expenses (709) (486) 1.3% 15 46.0%

Net Profit after Taxes 2,947 3,083 10.9% 6 -4.4%

Total Comprehensive Income 2,437 3,472 15.8% 5 -29.8%

Rank

Change,Amount, mln AMD

Share in total,

%

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

2.2%

14.2%

7.3%

21.5%

15.7%

47.4%

49.6%

41.3%

18.3%

0% 20% 40% 60%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Ardshinbank


Rankings

3rd

rank by the assets

3rd


2nd


3rd


4th

rank by the profit after tax


indicators.



Key Ratios**



The name of the bank was changed to

“Ardshinbank” CJSC

The bank and EDB signed a loan agreement of

USD 10 million to finance SME in the RA

The bank and BSTDB signed a loan agreement

of USD 10 million to finance SME in the RA

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 369,090 269,328 10.8% 3 37.0%


Loan Portfolio 220,148 172,287 10.2% 3 27.8%

Liabilities 321,695 225,211 11.0% 3 42.8%

Deposits 182,811 159,156 10.7% 2 14.9%

Equity 47,395 44,117 9.7% 2 7.4%

Charter Capital 17,925 13,802 6.6% 6 29.9%

Total Income 35,011 33,232 9.9% 3 5.4%

Interest Income 27,499 26,973 9.5% 4 1.9%




Amount, mln AMD

Share in total,

%

Rank

Change,

(10,000)

(5,000)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

1.3%

9.1%

4.8%

11.9%

12.8%

59.6%

46.6%

32.9%

13.5%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Areximbank – Gazprombank Group




Key Ratios**


-

50,000

100,000

150,000

200,000

250,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 110,728 233,438 3.2% 11 -52.6%

Interest Earning Assets 72,275 99,969 2.8% 11 -27.7%

Loan Portfolio 69,078 92,768 3.2% 10 -25.5%

Liabilities 95,068 212,108 3.3% 11 -55.2%

Deposits 41,811 160,800 2.5% 15 -74.0%

Equity 15,661 21,329 3.2% 13 -26.6%

Charter Capital 16,452 16,452 6.0% 7 -

Total Income 13,396 13,746 3.8% 11 -2.5%

Interest Income 9,881 11,352 3.4% 11 -13.0%


Net Profit after Taxes (5,669) 109 - 21 -5314.9%

Total Comprehensive Income (5,669) 392 - 21 -1546.7%

Amount, mln AMD

Share in total,

%

Rank

Change,

(10,000)

(5,000)

-

5,000

10,000

15,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

-3.3%

-30.7%

4.5%

-42.3%

14.1%

62.4%

70.1%

24.1%

13.1%

-50% 0% 50% 100%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy




Armbusinessbank



Rankings

3rd


5th


3rd


5th

rank by the profit after tax

5th

rank by the net profit after taxes

4th



indicators.


Key Ratios**



New branches were opened in Komitas,

Yerevan and Shirak

A new branch was opened in Artashat

The bank and Czech Export Bank signed a Framework

Agreement, which provides relatively low cost of

transactions, particularly low annual interest rate and

long-term financing (up to 10 years) for financing imports

of Czech goods to Armenia

The bank and the Development Bank of the Republic of

Belarus signed a framework agreement, pursuant to

which Armenian importers can make the payment for

Belarusian goods with deferment period for up to 5

years, while Belarusian exporters can receive payment

for commodities exported to Armenia in due time

A new branch was opened in Gegharkunik

-

50,000

100,000

150,000

200,000

250,000

300,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 268,935 219,459 7.9% 6 22.5%


Loan Portfolio 184,415 137,220 8.5% 5 34.4%

Liabilities 241,291 194,538 8.3% 5 24.0%

Deposits 145,569 116,508 8.6% 5 24.9%

Equity 27,644 24,921 5.7% 6 10.9%

Charter Capital 22,908 17,500 8.4% 3 30.9%

Total Income 23,983 21,694 6.8% 6 10.5%

Interest Income 20,166 18,767 7.0% 5 7.5%

Net Provision Expenses 1,504 (886) - 21 -269.8%



Amount, mln AMD

Share in total,

%

Rank

Change,

(5,000)

-

5,000

10,000

15,000

20,000

25,000

30,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

1.4%

13.4%

2.8%

14.7%

10.3%

68.6%

65.8%

16.1%

13.2%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Armeconombank




Key Ratios**



-

20,000

40,000

60,000

80,000

100,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 91,986 74,163 2.7% 12 24.0%


Loan Portfolio 52,095 40,694 2.4% 15 28.0%

Liabilities 80,845 63,100 2.8% 12 28.1%

Deposits 57,529 44,435 3.4% 10 29.5%

Equity 11,141 11,064 2.3% 17 0.7%

Charter Capital 2,333 2,333 0.9% 21 -

Total Income 11,229 10,016 3.2% 12 12.1%

Interest Income 8,332 7,237 2.9% 13 15.1%

Net Provision Expenses 42 (140) - 19 -129.8%

Net Profit after Taxes 886 717 3.3% 11 23.6%

Total Comprehensive Income 77 1,609 0.5% 14 -95.2%

Amount, mln AMD

Share in total,

%

Rank

Change,

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

1.07%

8.0%

7.0%

7.9%

12.1%

56.6%

83.3%

29.3%

12.7%

0% 20% 40% 60% 80% 100%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Armenian Development Bank




Key Ratios**



New branch was opened in Malatia-Sebastia,

Yerevan

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 75,819 68,508 2.2% 17 10.7%


Loan Portfolio 47,935 40,188 2.2% 16 19.3%

Liabilities 65,890 59,345 2.3% 16 11.0%

Deposits 51,773 53,950 3.0% 12 -4.0%

Equity 9,929 9,164 2.0% 18 8.4%

Charter Capital 4,526 4,526 1.7% 20 -

Total Income 8,637 7,691 2.4% 15 12.3%

Interest Income 7,791 6,460 2.7% 14 20.6%


Net Profit after Taxes 816 845 3.0% 12 -3.4%

Total Comprehensive Income 812 844 5.3% 10 -3.8%

Amount, mln AMD

Share in total,

%

Rank

Change,

(2,000)

-

2,000

4,000

6,000

8,000

10,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

1.1%

8.6%

5.7%

9.5%

13.1%

63.2%

50.4%

19.9%

12.4%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



ArmSwissBank




Key Ratios**



The bank and the EBRD signed a loan

agreement of USD 5 million to finance the

SME in the RA

2014 2013 2014/2013

Assets 84,493 69,811 2.5% 15 21.0%


Loan Portfolio 37,385 27,802 1.7% 17 34.5%

Liabilities 66,607 48,649 2.3% 15 36.9%

Deposits 34,642 24,155 2.0% 16 43.4%

Equity 17,886 21,162 3.7% 12 -15.5%

Charter Capital 8,753 8,753 3.2% 14 -

Total Income 9,040 7,335 2.6% 14 23.2%

Interest Income 7,663 6,195 2.7% 15 23.7%

Net Provision Expenses (1,230) (958) 2.3% 10 28.3%



Amount, mln AMD

Share in total,

%

Rank

Change,

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

(8,000)

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000

10,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

3.0%

11.8%

5.9%

25.5%

21.2%

44.2%

21.6%

35.9%

21.1%

0% 10% 20% 30% 40% 50%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Artsakh Bank




Key Ratios**



-

20,000

40,000

60,000

80,000

100,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 88,758 89,977 2.6% 13 -1.4%

Interest Earning Assets 71,240 75,220 2.7% 12 -5.3%

Loan Portfolio 63,683 62,107 2.9% 12 2.5%

Liabilities 77,524 76,323 2.7% 13 1.6%

Deposits 55,915 51,112 3.3% 11 9.4%

Equity 11,233 13,653 2.3% 15 -17.7%

Charter Capital 6,561 6,561 2.4% 17 -

Total Income 11,223 12,361 3.2% 13 -9.2%

Interest Income 9,716 10,602 3.4% 12 -8.4%


Net Profit after Taxes (1,697) 1,009 - 19 -268.2%


Amount, mln AMD

Share in total,

%

Rank

Change,

(6,000)

(4,000)

(2,000)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Total

Income

Interest

Income

NPE NPT

2014 2013

-1.9%

-13.6%

5.1%

-15.1%

12.7%

71.7%

68.0%

16.7%

12.9%

-20% 0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



BTA Bank




Key Ratios**



-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 16,389 11,562 0.5% 21 41.7%


Loan Portfolio 7,714 6,114 0.4% 20 26.2%

Liabilities 10,779 5,836 0.4% 21 84.7%

Deposits 4,063 3,835 0.2% 21 6.0%

Equity 5,610 5,727 1.1% 21 -2.0%

Charter Capital 6,520 6,520 2.4% 18 -

Total Income 1,709 1,593 0.5% 20 7.3%

Interest Income 1,415 1,413 0.5% 20 0.2%

Net Provision Expenses (152) 118 0.3% 17 -228.4%

Net Profit after Taxes (178) 79 - 17 -325.1%

Total Comprehensive Income (178) 150 - 16 -218.4%

Amount, mln AMD

Share in total,

%

Rank

Change,

(500)

-

500

1,000

1,500

2,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

-1.3%

-3.1%

8.6%

-10.4%

34.2%

47.1%

100.4%

17.3%

43.6%

-30% 0% 30% 60% 90% 120%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Byblos Bank Armenia




Key Ratios**



-

10,000

20,000

30,000

40,000

50,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 53,891 42,616 1.6% 19 26.5%


Loan Portfolio 28,973 24,105 1.3% 19 20.2%

Liabilities 45,551 33,636 1.6% 19 35.4%

Deposits 33,838 24,389 2.0% 17 38.7%

Equity 8,340 8,979 1.7% 20 -7.1%

Charter Capital 8,125 8,125 3.0% 15 -

Total Income 3,871 3,882 1.1% 19 -0.3%

Interest Income 3,246 3,737 1.1% 19 -13.1%


Net Profit after Taxes (513) (349) - 18 47.0%

Total Comprehensive Income (639) (156) - 17 309.0%

Amount, mln AMD

Share in total,

%

Rank

Change,

(1,000)

-

1,000

2,000

3,000

4,000

5,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

-1.1%

-5.9%

2.3%

-13.3%

15.5%

53.8%

85.7%

24.9%

17.8%

-20% 0% 20% 40% 60% 80% 100%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Converse Bank




Key Ratios**


Rankings


indicators.


The bank received the second tranche of USD

2.5 million of the loan from the EBRD to

finance the micro business and SME in the RA

1.8%

11.4%

6.3%

14.4%

15.4%

62.9%

60.7%

25.2%

12.4%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy

2014 2013 2014/2013

Assets 148,767 121,394 4.4% 9 22.5%


Loan Portfolio 93,625 79,957 4.3% 9 17.1%

Liabilities 125,905 102,315 4.3% 9 23.1%

Deposits 98,024 84,296 5.8% 8 16.3%

Equity 22,862 19,080 4.7% 9 19.8%

Charter Capital 7,002 4,860 2.6% 16 44.1%

Total Income 16,516 13,762 4.7% 9 20.0%

Interest Income 12,583 10,897 4.4% 9 15.5%


Net Profit after Taxes 2,380 449 8.8% 7 430.0%


Amount, mln AMD

Share in total,

%

Rank

Change,

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

(5,000)

-

5,000

10,000

15,000

20,000

Total

Income

Interest

Income

NPE NPT

2014 2013



HSBC Bank Armenia


Rankings

4th

rank by the assets

4th


3rd


5th


5th


2nd


2nd



indicators.



Key Ratios**



-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 306,609 249,424 9.0% 4 22.9%


Loan Portfolio 186,473 153,234 8.6% 4 21.7%

Liabilities 259,649 208,143 8.9% 4 24.7%

Deposits 172,769 159,195 10.2% 3 8.5%

Equity 46,960 41,281 9.6% 3 13.8%

Charter Capital 18,434 18,434 6.8% 5 -

Total Income 24,613 23,299 7.0% 5 5.6%

Interest Income 19,858 18,763 6.9% 6 5.8%




Amount, mln AMD

Share in total,

%

Rank

Change,

(5,000)

-

5,000

10,000

15,000

20,000

25,000

30,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

2.4%

14.9%

6.3%

26.7%

15.3%

60.8%

41.6%

30.2%

13.8%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Inecobank



Rankings

3rd


3rd



indicators.


Key Ratios**



The bank attracted loan from Symbiotics and

Responsability financial institutions to finance

micro business in the RA

The bank and the EBRD signed a loan

agreement of USD 10 million mainly to finance

SME and the renewable energy sector in the

RA

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 160,344 130,559 4.7% 8 22.8%


Loan Portfolio 108,612 82,762 5.0% 8 31.2%

Liabilities 133,857 107,096 4.6% 8 25.0%

Deposits 43,728 35,779 2.6% 14 22.2%

Equity 26,487 23,463 5.4% 7 12.9%

Charter Capital 11,082 6,926 4.1% 11 60.0%

Total Income 19,655 16,944 5.6% 8 16.0%

Interest Income 16,521 14,631 5.7% 8 12.9%




Amount, mln AMD

Share in total,

%

Rank

Change,

(5,000)

-

5,000

10,000

15,000

20,000

25,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

3.6%

20.7%

8.2%

26.3%

16.5%

67.7%

37.0%

18.8%

13.7%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Mellat Bank




Key Ratios**



-

5,000

10,000

15,000

20,000

25,000

30,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 27,637 18,965 0.8% 20 45.7%


Loan Portfolio 5,524 4,824 0.3% 21 14.5%

Liabilities 16,429 7,984 0.6% 20 105.8%

Deposits 7,120 1,278 0.4% 20 457.3%

Equity 11,208 10,981 2.3% 16 2.1%

Charter Capital 10,100 6,850 3.7% 12 47.4%

Total Income 1,458 1,134 0.4% 21 28.6%

Interest Income 1,334 1,070 0.5% 21 24.7%


Net Profit after Taxes 227 234 0.8% 16 -3.0%

Total Comprehensive Income 227 234 1.5% 13 -3.0%

Amount, mln AMD

Share in total,

%

Rank

Change,

(200)

-

200

400

600

800

1,000

1,200

1,400

1,600

Total

Income

Interest

Income

NPE NPT

2014 2013

1.0%

2.0%

7.5%

15.6%

40.6%

20.0%

62.2%

61.1%

77.1%

0% 20% 40% 60% 80% 100%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



ProCredit Bank




Key Ratios**



-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 66,485 52,793 1.9% 18 25.9%


Loan Portfolio 52,255 42,682 2.4% 14 22.4%

Liabilities 57,317 44,128 2.0% 17 29.9%

Deposits 25,863 24,648 1.5% 19 4.9%

Equity 9,167 8,665 1.9% 19 5.8%

Charter Capital 9,990 9,990 3.7% 13 -

Total Income 7,669 6,446 2.2% 17 19.0%

Interest Income 6,938 5,895 2.4% 16 17.7%



Total Comprehensive Income 502 22 3.3% 11 2232.3%

Amount, mln AMD

Share in total,

%

Rank

Change,

(2,000)

-

2,000

4,000

6,000

8,000

10,000

Total

Income

Interest

Income

NPE NPT

2014 2013

0.8%

5.6%

8.6%

6.5%

13.8%

78.6%

69.3%

17.1%

14.1%

0% 20% 40% 60% 80% 100%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Prometey Bank




Key Ratios**



-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 77,950 62,831 2.3% 16 24.1%


Loan Portfolio 36,951 29,746 1.7% 18 24.2%

Liabilities 54,638 40,778 1.9% 18 34.0%

Deposits 30,004 26,164 1.8% 18 14.7%

Equity 23,312 22,053 4.8% 8 5.7%

Charter Capital 14,400 14,400 5.3% 8 -

Total Income 6,678 6,560 1.9% 18 1.8%

Interest Income 5,285 5,217 1.8% 18 1.3%

Net Provision Expenses (184) (259) 0.3% 16 -29.0%



Amount, mln AMD

Share in total,

%

Rank

Change,

(1,000)

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

1.6%

4.9%

5.1%

16.6%

29.9%

47.4%

53.1%

28.8%

29.0%

0% 10% 20% 30% 40% 50% 60%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



Unibank



Rankings


indicators.


Key Ratios**



-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 171,049 153,490 5.0% 7 11.4%


Loan Portfolio 119,484 116,795 5.5% 7 2.3%

Liabilities 149,818 132,739 5.1% 7 12.9%

Deposits 113,709 127,081 6.7% 7 -10.5%

Equity 21,231 20,750 4.3% 11 2.3%

Charter Capital 13,101 13,101 4.8% 9 -

Total Income 22,569 20,524 6.4% 7 10.0%

Interest Income 18,465 16,829 6.4% 7 9.7%




Amount, mln AMD

Share in total,

%

Rank

Change,

(5,000)

-

5,000

10,000

15,000

20,000

25,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

0.6%

4.6%

5.0%

4.3%

12.4%

69.9%

58.8%

23.0%

13.9%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy



VTB Bank (Armenia)


Rankings

2nd

rank by the assets

2nd


4th


4th


1st



indicators



Key Ratios**



-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Assets Loan

Portfolio

Deposits Equity

As of 31.12.14 As of 31.12.13

2014 2013 2014/2013

Assets 379,636 302,275 11.1% 2 25.6%


Loan Portfolio 244,343 218,803 11.3% 2 11.7%

Liabilities 334,862 265,021 11.5% 2 26.4%

Deposits 156,251 146,865 9.2% 4 6.4%

Equity 44,774 37,254 9.2% 4 20.2%

Charter Capital 20,776 13,776 7.6% 4 50.8%

Total Income 43,421 38,910 12.3% 1 11.6%

Interest Income 38,046 30,475 13.2% 1 24.8%


Net Profit after Taxes 777 5,638 2.9% 13 -86.2%

Total Comprehensive Income 31 6,949 0.2% 15 -99.5%

Amount, mln AMD

Share in total,

%

Rank

Change,

(20,000)

(10,000)

-

10,000

20,000

30,000

40,000

50,000

Total

Income

Interest

Income

NPE NPT OCI

2014 2013

0.2%

1.9%

7.5%

1.8%

11.8%

64.4%

59.5%

15.9%

13.0%

0% 20% 40% 60% 80%

ROA

ROE

NIM

PM

Equity/Assets



Liquidity

Capital Adequacy


Appendix 1

Shareholding Structure & General Information

The shareholding structure of the Armenian banks is very different. There are both resident and non-

resident shareholders. Meanwhile, almost in all the Armenian banks non-resident shareholders are

presented. The non-resident participants, both legal entities and individuals, are mainly from Russia,

Switzerland, Iran, Lebanon, Liechtenstein, Cyprus, France, the United Kingdom, the USA and

Kazakhstan. There are several international organizations that have shares in several Armenian

banks (e.g. IFC, DEG, EBRD, KfW and OPEC Fund for International Development).

During the reviewed period there were no mergers and/or acquisitions within the sector.

The shareholding structure and information on branches and the staff for each bank is presented

below*.

Anelik Bank

Shareholders (> 5%):

Credit Bank S.A.L. (100%)

Branches: 14 (8 in Yerevan)

Staff: 393 employees

Areximbank-Gazprombank

Group


Gazprombank OJSC (100%)



Ardshinbank


Center for Business

InvestmentsLLC (97.51%)


Staff: 1,094 employees



Ruben Hayrapetyan (20%)

Rafik Hayrapetyan (19.5%)

Grigor Termenjyan (16%)



Ararat Bank


Flash Ltd. (64.2%)

EBRD (25%)

Rural Impulse

Fund II S.A SICAV-SIF (10%)



Ameriabank


Ameria Group (CY) Limited (100%)



ACBA-Credit Agricole Bank


Credit Agricole s.A (15.6%)

Sacam International SJSC (12.4%)

Mutual Regional Village

Associations from different

marzes of RA (71%)


Staff: 1,162 employees

Armeconombank


Saribek Sukiasyan (22.6%)

Khachatur Sukiasyan (19.5%)

Robert Sukiasyan (10.3%)

EBRD (25.0%)



Armbusinessbank


Vitaliy Sarkis Grigoryants (100%)



* The figures presented in different color and italic form are those changed during the 4rd

quarter of

2014.


Appendix 1

Shareholding Structure & General Information

(continued)

VTB Bank (Armenia)


VTB OJSC (100%)



Mellat Bank


Bank Mellat of I.R.I (100%)

Branches: -

Staff: 40 employees

BTA Bank


BTA Bank JSC (44.7%)

ZRL Beteiligungs AG (31.1%)

Mobilex Energy LLC (14.5%)



Prometey Bank


Prometey City LLC (50%)

ZakNeftegazstroy

Prometey OJSC (46.1%)



Unibank


Ripatonso Holdings Limited (100%)



ArmSwissBank


Vartan Sirmakes (80%)

“Belegingsmachepij

Jongo” LLC (20%)

Branches: -

Staff: 107* employees

ProCredit Bank


ProCredit Holding AG & Co. (100%)



Artsakh Bank


Vartan Sirmakes (43.1%)

Hrach Gabrielyan (39.1%)



HSBC Bank Armenia


HSBC Europe BV (70%)

Wings Establishment (30%)



Byblos Bank Armenia


Byblos Bank S.A.L. (65%)

EBRD (25%)

OPEC Fund for International

Development (10%)



Inecobank


Avetis Baloyan (35.2%)

Karen Safaryan (30.3%)

DEG (12.6%)

IFC (9.3%)



Converse Bank


Advanced Global Investments LLC

(95%)

Mother See of Holy Etchmiadzin

Catholicosate (5%)



* The figures presented in different color and italic form are those changed during the 4rd

quarter of

2014.


Appendix 2

Sector Insights

Assets

As of 31 December 2014 the assets grew in almost all the banks, and only two banks suffered

decreases as compared with the previous year.

The interest earning assets comprised 76.3% of the total assets of the banks. As of 31 December

2014 the interest earning assets of banks grew by 19.3% compared with 31 December 2013. In

the meantime, the interest income grew by 9.2% as compared with the same date of the previous

year.

The net interest margin was 5.9% for the reviewed period.

As of 31 December 2014 "AmeriaBank" CJSC had the highest value of assets - about AMD 399.7

billion, which is 11.7% of the total assets of the banking sector."BTA Bank" CJSC had the lowest

level – AMD 16.4 billion (0.5% in total assets). It is worth mentioning that the top five banks

(ranked by assets) totaled 51.1% of the assets of the banking system as of 31 December 2014.

Nevertheless, the banking industry concentration is not high and is defined as unconcentrated

according to the Herfindahl-Hirschman Index, which has the value of 0.073. Compared with the

previous year the HHI increased by 0.003.

Loan portfolio

The top five banks (ranked by loans) recorded 52.5% of the total loan portfolio as of 31 December

2014.

The major part (95.6%) of the total sum of the outstanding loans was provided to the residents of

Armenia, from which 56.5% were companies (only 1.8% of this amount was provided to state

owned companies), 38.8% - to the households, and only a small part to not for profit organizations

and other financial organizations (OFI). Compared with the same period of the previous year the

share of loans to households in the total amount of outstanding loans has increased by 0.4

percentage points and the share of companies has decreased by 0.3 percentage points.

As for the base currencies of the

loans, it should be noted that

households and other financial

institutions are mainly provided with

loans in AMD (62.3% and 75.3% of

the total loans provided to them

respectively) in contrast to companies

and non for profit organizations, which

prefer loans in foreign currencies

(84.8% and 88.6% of total loans

provided to them respectively).

Structure of loans by creditors

Private sector55%

Households39%

Private sector

Households

Non for profit

OFI

State ownedcompanies


The consumer loans, loans to industry and loans to the trade sector traditionally comprise the

major part of the total loans of the banks, 22.5%, 21.3% and 19.2% respectively for the reviewed

period. The biggest growth in lending was in the loans to the service sector (compared to the 31

December 2013, the volume of loans grew by 45.7%).

Net Provision Expenses

As of 31 December 2014 the banking system total net provision expenses increased by 164.5%

and reached AMD 53.2 billion.

Liabilities

As of 31 December 2014 the banking system total liabilities grew by 18.3%, compared with the

same figure as of 31 December 2013, to reach AMD 2,921.8 billion, of which 58.2% are deposits.

Deposits

As of 31 December 2014 the biggest share for term deposits was held by households and the

biggest share on demand deposits were held by private sector (79.2% and 45.3%).

The major part of outstanding balance of the deposits was from the residents (75.1%), 70.5% of

which were term deposits. The deposits were held mainly in foreign currencies.

Appendix 2

Sector Insights (continued)

Structure of loans by economy sectors

Structure of deposits

The biggest loan portfolio

belonged to “Ameriabank" CJSC –

AMD 300.4 billion, which

comprised 13.9% of the portfolio

of the banking system for the

reported period.

As of 31 December 2014 the

loans/deposits ratio was 1.272

compared with 1.099 calculated

as of 31 December 2013.

Residents75%

Non residents

25%

Other currency

72%

AMD28%

21%

6%

6%

2%

19%7%

23%

9%

7%Industry

Agriculture

Construction

Transport and

Communication

Trade

Service sector

Consumer loans

Mortgage

Other

Term70%

On demand*30%

* The indicators of the deposits duration are presented only based on the deposits from the residents


Appendix 2


Equity

The 4.2% increase of equity of the banking sector as of 31 December 2014 compared to the same

date in 2013 was mainly due to the additions to the general reserve (24.0% increase compared to

the figure for the previous period).

The total equity to total assets ratio was 14.3%, which is 1.7 percentage points lower compared to

the same ratio of 2013 (16.0%).

As of 31 December 2014 "ACBA-Credit Agricole Bank" CJSC had the highest level of equity - about

AMD 49.4 billion, which is 10.1% of the total equity of the banking system. "BTA Bank" CJSC had

the lowest level – AMD 5.6 billion (1.1% in total equity). 47.2% of the total equity of the banking

system belonged to the top five banks (ranked by the equity) as of 31 December 2014.

Income

The income from interest was about AMD 288.7 billion, which is about 81.7% (2013 same period

82.5%) of the total income of the banking system.

The total income of the banking system increased by 10.3% compared with the same period of

the previews year and reached AMD 353.5 billion. 49.1% of total income of the banking system

belonged to the top 5 banks (ranked by the total income).

All the banks increased their income compared to the 2013, except for "ArtsakhBank" CJSC,

"AreximBank-GazPromBank Group" CJSC and "Byblos Bank Armenia" CJSC which had decreases in

total income of 9.2%, 2.5% and 0.3% respectively.

Profit/loss

During the reported period 16 banks operating in Armenia were profitable (totaled AMD 50.3 billion

profit before taxes), while 5 banks incurred total losses before taxes of AMD 13.6 billion.

The net profit after taxes of the banking system for the period ended 31 December 2014 was

AMD 27.2 billion.

Structure of depositsAs the diagram shows, the households

had the biggest share (67.8%) in the

total amount of deposits from residents

followed by the private companies which

held (20.3%) of the total deposits from

residents.

The highest level of deposits was held

by “AmeriaBank" CJSC - about AMD

208.7 billion, which comprises 12.3% of

the total deposits of the banking system

of Armenia.

As of 31 December 2014 four banks had

decreases in deposits of 74.0%, 10.5%,

5.5% and 4.0% respectively compared

to the same date of 2013.

68%

20%

5%6%

1%

Households Private companies

Non for Profit Organizations OFI

State owned companies


Appendix 2


Changes in the Banking Prudential Standards

New requirements on the Minimum Total Capital and Minimum Required Reserves on

Funds Involved in Foreign Currency.

During December 2014 the CBA increased the rate of minimum required reserves on funds

involved in foreign currency to eventual level of 20%. The CBA also increased the refinancing rate

and repurchase agreements rates.

On 30 December 2014 the Central Bank of Armenia changed the standard on minimal amount of

total capital for banks. As a result of the changes, the required minimum amount of total capital

increased six times from AMD 5.0 billion to AMD 30.0 billion.

For the existing banks, the revised standard will enter into force starting from 1 January 2017.

Before this date the required minimum amount of total capital will remain AMD 5.0 billion.

For the new establishing banks, the revised standard entry into force immediately. The required

amount of total capital for establishing the new bank was stated AMD 30.0 billion.

Due to the specifics of total capital calculation for reporting to the CBA, there is some differences

between amounts of total capital calculated according IFRS and methodology of CBA . The amount

of banks’ total capitals calculated according to the CBA methodology are presented in the table

below:

AMD MillionReported Total

Capital

Amount needed to

achieve the new

standard

Required growth in

total capital to achieve

the new standard

1 "ACBA-Credit Agricole Bank" CJSC 42,180 - -

2 "AmeriaBank" CJSC 53,323 - -

3 "Anelik Bank" CJSC 10,821 19,179 177.2%

4 "AraratBank" OJSC 21,450 8,550 39.9%

5 "Ardshinbank" CJSC 36,622 - -

6 "AreximBank-GazPromBank Group" CJSC 11,907 18,093 152.0%

7 "ArmBusinessBank" CJSC 24,689 5,311 21.5%

8 "ArmEconomBank" OJSC 9,296 20,704 222.7%

9 "Armenian Development Bank" OJSC 8,944 21,056 235.4%

10 "ArmSwissBank" CJSC 18,504 11,496 62.1%

11 "ArtsakhBank" CJSC 9,056 20,944 231.3%

12 "BTA Bank" CJSC 5,662 24,338 429.8%

13 "Byblos Bank Armenia" CJSC 7,063 22,937 324.8%

14 "Converse Bank" CJSC 17,369 12,631 72.7%

15 "HSBC Bank Armenia" CJSC 41,341 - -

16 "InecoBank" CJSC 23,099 6,901 29.9%

17 "Mellat Bank" CJSC 9,018 20,982 232.7%

18 "ProCredit Bank" CJSC 10,541 19,459 184.6%

19 "Prometey Bank" LLC 18,477 11,523 62.4%

20 "UniBank" CJSC 22,013 7,987 36.3%

21 "VTB Bank Armenia" CJSC 50,801 - -


Appendix 3

Key Financial Indicators

Key Indicators of the Financial Position as of 31.12.2014

AMD Million Assets

Interest

Earning

Assets

Gross

Advances

to

Customers

Loans Liabilities Deposits Equity

Charter

Capital

1

"ACBA-Credit Agricole

Bank" CJSC286,410 213,669 204,047 179,530 237,039 123,666 49,371 30,000

2 "AmeriaBank" CJSC 399,744 325,891 301,517 300,359 357,389 208,697 42,355 25,448

3 "Anelik Bank" CJSC 87,034 63,586 61,132 58,615 72,629 48,531 14,405 11,816

4 "AraratBank" OJSC 138,830 92,368 76,944 65,771 117,058 64,768 21,771 6,388

5 "Ardshinbank" CJSC 369,090 265,022 247,824 220,148 321,695 182,811 47,395 17,925

6

"AreximBank-

GazPromBank Group"

CJSC

110,728 72,275 70,452 69,078 95,068 41,811 15,661 16,452

7

"ArmBusinessBank"

CJSC268,935 211,974 190,190 184,415 241,291 145,569 27,644 22,908

8

"ArmEconomBank"

OJSC91,986 66,711 60,253 52,095 80,845 57,529 11,141 2,333

9

"Armenian

Development Bank"

OJSC

75,819 58,016 48,005 47,935 65,890 51,773 9,929 4,526

10 "ArmSwissBank" CJSC 84,493 70,255 40,292 37,385 66,607 34,642 17,886 8,753

11 "ArtsakhBank" CJSC 88,758 71,240 64,224 63,683 77,524 55,915 11,233 6,561

12 "BTA Bank" CJSC 16,389 11,553 7,869 7,714 10,779 4,063 5,610 6,520

13

"Byblos Bank Armenia"

CJSC53,891 48,089 44,907 28,973 45,551 33,838 8,340 8,125

14 "Converse Bank" CJSC 148,767 109,604 100,986 93,625 125,905 98,024 22,862 7,002

15

"HSBC Bank Armenia"

CJSC306,609 256,039 221,401 186,473 259,649 172,769 46,960 18,434

16 "InecoBank" CJSC 160,344 129,441 117,312 108,612 133,857 43,728 26,487 11,082

17 "Mellat Bank" CJSC 27,637 17,096 10,306 5,524 16,429 7,120 11,208 10,100

18 "ProCredit Bank" CJSC 66,485 52,703 52,693 52,255 57,317 25,863 9,167 9,990

19 "Prometey Bank" LLC 77,950 53,335 43,096 36,951 54,638 30,004 23,312 14,400

20 "UniBank" CJSC 171,049 128,738 123,665 119,484 149,818 113,709 21,231 13,101

21

"VTB Bank Armenia"

CJSC 379,636 286,337 262,997 244,343 334,862 156,251 44,774 20,776

Total 3,410,584 2,603,941 2,350,111 2,162,966 2,921,841 1,701,080 488,743 272,640


Appendix 3

Key Financial Indicators (continued)

Key Indicators of the Financial Results for the period ended 31.12.2014

* Net operating income is before provisions and administrative expenses.

AMD Million

Total

Income

Interest

Income

Non-

Interest

Income

Net

Interest

Income

Net

Non-

Interest

Income

Net

Operating

Income*

Operating

Expenses

Net

Provision

Expenses

Net Profit

before

taxes

Net

Profit

after

taxes

1


Bank" CJSC36,985 28,759 3,075 15,083 1,759 21,993 (11,690) (14,739) (4,436) (4,625)

2 "AmeriaBank" CJSC 33,572 27,712 2,307 14,625 1,875 20,053 (9,296) (1,731) 9,026 7,149

3 "Anelik Bank" CJSC 8,501 6,383 1,123 1,966 993 3,954 (3,580) 159 532 335

4 "AraratBank" OJSC 13,722 11,083 987 6,251 596 8,499 (4,218) (709) 3,572 2,947

5 "Ardshinbank" CJSC 35,011 27,499 3,585 11,386 2,976 18,289 (8,522) (4,593) 5,174 4,171

6

"AreximBank-

GazPromBank Group"

CJSC

13,396 9,881 891 3,848 537 7,009 (4,914) (8,817) (6,722) (5,669)

7

"ArmBusinessBank"

CJSC23,983 20,166 1,932 5,356 1,503 8,743 (5,750) 1,504 4,497 3,527

8

"ArmEconomBank"

OJSC11,229 8,332 1,509 4,239 1,174 6,800 (5,666) 42 1,176 886

9

"Armenian

Development Bank"

OJSC

8,637 7,791 397 3,112 291 3,852 (1,943) (993) 916 816

10

"ArmSwissBank"

CJSC9,040 7,663 203 3,865 156 5,194 (1,124) (1,230) 2,839 2,307

11 "ArtsakhBank" CJSC 11,223 9,716 574 3,761 467 5,163 (3,513) (3,347) (1,697) (1,697)

12 "BTA Bank" CJSC 1,709 1,415 258 826 88 950 (954) (152) (156) (178)

13

"Byblos Bank

Armenia" CJSC3,871 3,246 92 928 43 1,505 (1,290) (758) (543) (513)

14

"Converse Bank"

CJSC16,516 12,583 1,666 6,311 1,129 9,707 (5,896) (756) 3,055 2,380

15

"HSBC Bank Armenia"

CJSC24,613 19,858 2,710 14,763 2,162 18,970 (7,896) (2,530) 8,544 6,565

16 "InecoBank" CJSC 19,655 16,521 1,235 9,800 934 12,634 (4,674) (1,539) 6,421 5,177

17 "Mellat Bank" CJSC 1,458 1,334 53 1,075 52 1,198 (744) (151) 302 227

18

"ProCredit Bank"

CJSC7,669 6,938 388 4,232 198 4,772 (3,306) (814) 652 502

19 "Prometey Bank" LLC 6,678 5,285 337 2,393 (118) 3,330 (1,769) (184) 1,377 1,108

20 "UniBank" CJSC 22,569 18,465 2,167 6,439 1,852 10,228 (6,015) (3,026) 1,187 962

21

"VTB Bank Armenia"

CJSC 43,421 38,046 3,276 19,985 2,357 24,441 (14,553) (8,852) 1,036 777

Total 353,459 288,677 28,766 140,242 21,025 197,283 (107,315) (53,216) 36,752 27,155


Appendix 3


Key Indicators of the Financial Position as of 31.12.2013

AMD Million Assets

Interest

Earning

Assets

Gross

Advances

to

Customers

Loans Liabilities Deposits Equity

Charter

Capital

1


Bank" CJSC267,683 203,776 196,152 169,282 213,533 107,880 54,150 30,000

2 "AmeriaBank" CJSC 315,048 211,215 188,207 185,100 276,342 169,942 38,706 25,448

3 "Anelik Bank" CJSC 60,029 43,930 43,568 38,597 46,959 33,237 13,070 10,816

4 "AraratBank" OJSC 125,236 78,497 65,147 59,594 105,604 68,542 19,633 6,388

5 "Ardshinbank" CJSC 269,328 205,299 182,778 172,287 225,211 159,156 44,117 13,802

6

"AreximBank-

GazPromBank Group"

CJSC

233,438 99,969 96,376 92,768 212,108 160,800 21,329 16,452

7

"ArmBusinessBank"

CJSC219,459 166,714 141,669 137,220 194,538 116,508 24,921 17,500

8

"ArmEconomBank"

OJSC74,163 55,137 47,722 40,694 63,100 44,435 11,064 2,333

9

"Armenian

Development Bank"

OJSC

68,508 50,761 43,253 40,188 59,345 53,950 9,164 4,526

10 "ArmSwissBank" CJSC 69,811 61,190 30,138 27,802 48,649 24,155 21,162 8,753

11 "ArtsakhBank" CJSC 89,977 75,220 68,995 62,107 76,323 51,112 13,653 6,561

12 "BTA Bank" CJSC 11,562 7,657 6,620 6,114 5,836 3,835 5,727 6,520

13

"Byblos Bank Armenia"

CJSC42,616 32,654 29,215 24,105 33,636 24,389 8,979 8,125

14 "Converse Bank" CJSC 121,394 90,654 82,841 79,957 102,315 84,296 19,080 4,860

15

"HSBC Bank Armenia"

CJSC249,424 214,783 181,431 153,234 208,143 159,195 41,281 18,434

16 "InecoBank" CJSC 130,559 110,086 100,672 82,762 107,096 35,779 23,463 6,926

17 "Mellat Bank" CJSC 18,965 11,719 6,666 4,824 7,984 1,278 10,981 6,850

18 "ProCredit Bank" CJSC 52,793 45,437 45,427 42,682 44,128 24,648 8,665 9,990

19 "Prometey Bank" LLC 62,831 41,284 35,137 29,746 40,778 26,164 22,053 14,400

20 "UniBank" CJSC 153,490 126,370 120,887 116,795 132,739 127,081 20,750 13,101

21

"VTB Bank Armenia"

CJSC 302,275 249,815 233,395 218,803 265,021 146,865 37,254 13,776

Total 2,938,589 2,182,168 1,946,297 1,784,663 2,469,388 1,623,247 469,201 245,562


Appendix 3


Key Indicators of the Financial Results for the period ended 31.12.2013

* Net operating income is before provisions and administrative expenses.

AMD Million

Total

Income

Interest

Income

Non-

Interest

Income

Net

Interest

Income

Net

Non-

Interest

Income

Net

Operating

Income*

Operating

Expenses

Net

Provision

Expenses

Net Profit

before

taxes

Net

Profit

after

taxes

1


Bank" CJSC33,904 28,775 2,714 15,571 1,669 19,655 (11,600) (1,472) 6,583 4,999

2 "AmeriaBank" CJSC 27,736 22,769 2,055 11,659 1,642 16,212 (6,566) (1,960) 7,687 6,057

3 "Anelik Bank" CJSC 6,280 5,407 495 1,751 438 2,567 (3,363) (648) (1,445) (1,444)

4 "AraratBank" OJSC 13,351 10,892 1,020 6,065 672 8,177 (3,809) (486) 3,882 3,083

5 "Ardshinbank" CJSC 33,232 26,973 3,012 14,279 2,547 20,072 (8,363) (3,655) 8,054 6,420

6

"AreximBank-

GazPromBank Group"

CJSC

13,746 11,352 976 4,469 580 6,468 (5,096) (1,122) 250 109

7

"ArmBusinessBank"

CJSC21,694 18,767 1,528 5,962 982 8,343 (5,331) (886) 2,126 1,891

8

"ArmEconomBank"

OJSC10,016 7,237 1,641 3,736 1,256 6,130 (5,019) (140) 971 717

9

"Armenian

Development Bank"

OJSC

7,691 6,460 371 2,207 269 3,337 (2,037) (179) 1,121 845

10

"ArmSwissBank"

CJSC7,335 6,195 212 3,025 170 4,124 (1,008) (957) 2,159 1,742

11 "ArtsakhBank" CJSC 12,361 10,602 601 4,435 437 6,031 (3,271) (1,500) 1,259 1,009

12 "BTA Bank" CJSC 1,593 1,413 98 858 41 981 (988) 118 111 79

13

"Byblos Bank

Armenia" CJSC3,882 3,737 92 1,391 44 1,488 (1,149) (725) (385) (349)

14

"Converse Bank"

CJSC13,762 10,897 1,365 5,153 848 7,501 (6,459) (300) 741 449

15

"HSBC Bank Armenia"

CJSC23,299 18,763 2,610 14,273 2,150 18,349 (7,654) (552) 10,144 8,010

16 "InecoBank" CJSC 16,944 14,631 992 8,655 822 10,798 (4,013) (627) 6,157 4,887

17 "Mellat Bank" CJSC 1,134 1,070 36 1,058 35 1,121 (758) (36) 327 234

18

"ProCredit Bank"

CJSC6,446 5,895 346 3,409 150 3,764 (3,397) (264) 104 22

19 "Prometey Bank" LLC 6,560 5,217 298 2,752 (66) 3,731 (1,689) (259) 1,784 1,411

20 "UniBank" CJSC 20,524 16,829 1,355 5,608 1,083 9,031 (7,119) (1,018) 895 484

21

"VTB Bank Armenia"

CJSC 38,910 30,475 2,669 15,188 2,040 22,995 (12,212) (3,454) 7,329 5,638

Total 320,401 264,355 24,485 131,503 17,810 180,874 (100,901) (20,121) 59,852 46,292


Appendix 4

Bank Contact Details

ACBA-Credit Agricole Bank

Director: Hakob Andreasyan

Address: 1Byron str., Yerevan

Tel./Fax: (+37410) 318888

TELEX: 243-103 ACBA AM

E-mail: [email protected]

Website: acba.am

SWIFT: AGCAAM22

Anelik Bank

Director: Nerses Karamanukyan

Address: 13 Vardanants str.,

Yerevan, RA

Tel./Fax: (+37410) 593333,

(+37460) 273333

TELEX: ANELSU


Website: anelik.am

SWIFT: ANIKAM22

Ameria bank

Director: Artak Hanesyan

Address: 9 Grigor Lusavorchi str.,

Yerevan, RA

Tel./Fax: (+37410) 561111,

513133

TELEX: 684-243352


Website: ameriabank.am

SWIFT: ARMIAM22

Ararat Bank

Director: Ashot Osipyan

Address: 19 Pushkin str.,

Yerevan, RA

Tel./Fax: (+37410) 592323,

(+37410) 547894

TELEX: -

E-mail:

[email protected]

Website: araratbank.am

SWIFT: ARMCAM22

Ardshinbank

Director: Mher Grigoryan

Address: 13 G. Lusavorchi str.,

Yerevan, RA

Tel./Fax: (+37410) 540404

567486

TELEX: 243-286 LALA AM


Website: ashib.am

SWIFT: ASHBAM22

Areximbank Gazprombank

Group

Acting Director: Vigen

Barseghyan

Address: 6-10 Northern ave.,

Yerevan, RA

Tel./Fax: (37410) 514040, 514060

TELEX: 243-111 RKARM AM


Website: areximbank.am

SWIFT: RKASAM22

Armbusinessbank

Director: Arsen Mikaelyan

Address: 48 Nalbandyan str.

Yerevan, RA

Tel./Fax: (+37460) 372500,

(+37410) 592020, 592064

TELEX: 243134 IBANK.AM

E-mail:

[email protected]

Website: armbusinessbank.am

SWIFT: ARMNAM 22

Armeconombank

Director: Armen Naljyan

Address: 23/1 Amiryan str.,

Yerevan, RA

Tel./Fax: (+37410) 510910,

538904

TELEX: 243274MOZG AM


Website: aeb.am

SWIFT: ARECAM22


Director: Karen Sargsyan

Address: 21/1 Paronyan str.,

Yerevan, RA

Tel./Fax: (+37410) 591515,

591405

TELEX:(684)243-116ADBAM


Website: armdb.com

SWIFT: ARDEAM22

ArmSwissBank

Director: George Machanyan

Address: 10 Vazgen Sargsyan

str., Yerevan, RA

Tel./Fax: (+37410) 584419,

540728, 529593,

TELEX: -


Website: аrmswissbank.am

SWIFT: ARSGAM22

Artsakh Bank

Director: Kamo Nersisyan

Address: 3 Kievyan str., Yerevan,

RA; 25 Knunyancneri,

Stepanakert, NKR

Tel./Fax: (+37410) 220743,

270763, 270734

TELEX: (684) 243 385 BANK AM


Website: artsakhbank.com

SWIFT: ARTSAM22

BTA Bank

Acting Director: Hovhannes

Mkrtichyan

Address: 48/1 Nalbandyan str.,

Yerevan, RA

Tel./Fax: (+37410) 500777,

547645, 547649

TELEX: 243124 ECO AM


Website: bta.am

SWIFT: BTAIAM22


Appendix 4

Bank Contact Details (continued)

ProCredit Bank

Director: Avtandil Gogoli

Address: 105/1 Teryan str., area

11, 7th floor, Citadel Business

Center, Yerevan, RA

Tel./Fax: (+37411) 202020

TELEX: -


Website: procreditbank.am

SWIFT: PRCBAM22

Inecobank

Director: Taron Ganjalyan

Address: 17 Tumanyan str.,

Yerevan, RA

Tel./Fax: (+37410) 510510,

510573

TELEX: -


Website: inecobank.am

SWIFT: INJSAM22

VTB Bank (Armenia)

Director: Yuri Gusyev

Address: 46 Nalbandyan str.,

Yerevan, RA

Tel./Fax: (+37480000) 8787,

(+37410) 565578

TELEX: -


Website: vtb.am

SWIFT: ARMJAM22

Prometey Bank

Director: Emil Soghomonyan

Address: 44/2 Hanrapetutian str.,

Yerevan, RA

Tel./Fax: (+37410) 562036,

582977, 545719

TELEX: -


Website: prometeybank.am

SWIFT: PRMLAM22

Unibank

Director: Vardan Atayan

Address: 12/53 Charents str.,

Yerevan, RA

Tel./Fax: (+37410) 592259;

595555, 555140

TELEX: 243313 UNI AM


Website: unibank-armenia.com

SWIFT: UNIJAM22

Byblos Bank Armenia

Director: Ararat Ghukasyan

Address: 18/3 Amiryan str.,

Yerevan, RA

Tel./Fax: (+37410) 530362,

535296

TELEX: 24-33-60 (068)


Website: byblosbankarmenia.am

SWIFT: BYBAAM22

Mellat Bank

Director: Touraj Mehrdad

Address: 6 Amiryan str.,

Yerevan, RA

Tel./Fax: (+37410) 581791,

581523, 540885

TELEX: 581523


Website: mellatbank.am

SWIFT: BKMTAM22

Converse Bank

Director: Tigran Davtyan

Address: 26/1V. Sargisyan str.,

Yerevan, RA

Tel./Fax: (+37410) 511200,

511211, 51 12 12

TELEX: 243139 PBCON RU, 111

780 HOR RU


Website: conversebank.am

SWIFT: COVBAM22

HSBC Bank Armenia

Director: Thies Clemenz

Address: 66 Teryan str., Yerevan,

RA

Tel./Fax: (+37410) 515000,

515001

TELEX: 515000


Website: hsbc.am

SWIFT: MIDLAM22


KPMG Experience in the Armenian Banking Sector

Audit

Current clients

Ardshinbank CJSC

Armenian Development Bank OJSC

Inecobank CJSC

HSBC Bank Armenia CJSC

PanArmenian Bank OJSC

ProCredit Bank CJSC

Tax

Advisory

Client name Service description

Anelik Bank CJSC KPMG in Armenia provided IT Advisory services to the bank.

Inecobank CJSC KPMG in Armenia assisted the Bank in HR Advisory Services.

Undisclosed Bank

KPMG in Armenia performed Bank’s Top management

remuneration and bonus competitiveness survey

Converse Bank CJSC

KPMG in Armenia assisted Converse Bank cjsc in developing a

marketing plan for attracting corporate customers.

Armimpexbank CJSC

KPMG in Armenia assisted the Bank in the development and

implementation of “a one window” system.

Byblos Bank Armenia CJSC

KPMG in Armenia assisted the Bank in obtaining necessary

information about the commercial and retail lending market of

Armenia.

Ardshinbank CJSC

KPMG in Armenia assisted the Bank in the development and

implementation of “a one window” system.

International Undisclosed Bank

KPMG in Armenia assisted in the pre-investment due-diligence to

International Bank in its acquisition of an Armenian bank.

Current clients

VTB - Armenia Bank CJSC


Abbreviations

AMD Armenian Dram

BSTDB Black Sea Trade and Development Bank

CBA Central Bank of Armenia

CJSC Closed Joint Stock Company

DEG Deutsche Investitions und Entwicklungsgesellschaft

EBRD European Bank for Reconstruction and Development

GDP Gross Domestic Product

HHI Herfindahl-Hirschman Index

IFC International Finance Corporation

KfW Kreditanstalt für Wiederaufbau (Reconstruction Credit

Institute)

LLC Limited Liability Company

NfPO Non for Profit Organizations

NIM Net Interest Margin

NPE Net Provision Expenses

NPT Net Profit after Taxes

OCI Other Comprehensive Income

OeEB Development Bank of Austria

OFI Other Financial Institutions

OJSC Open Joint Stock Company

OPEC Organization of the Petroleum Exporting Countries

PM Profit Margin

RA Republic of Armenia

ROA Return on Assets

ROE Return on Equity

SME Small and Medium Entrepreneurship


Glossary of Terms

Herfindahl-Hirschman Index

Calculated by squaring the market share of each firm competing in the market and then summing

the resulting numbers. Index below 0.1 indicates an unconcentrated index; index between 0.1 and

0.18 indicates moderate concentration; index above 0.18 indicates high concentration.

Equity to assets

Calculated as the total equity divided by the total assets.

Liquidity

Prudential ratio N1

2(High liquid assets/Total assets) calculated and reported by each bank as of the

reporting date according to the corresponding regulation of the CBA.

Capital adequacy

Prudential ratio N1

(Total capital/ risk weighted assets) calculated and reported by each bank as of

the reporting date according to the corresponding regulation of the CBA.

Net interest margin

Calculated as the net interest income generated during the last 12 months ended by the reporting

date divided by the average interest earning assets for the mentioned 12 months.

Profit margin

Calculated as the net profit generated during the reported period divided by the total income for

the same period.

Return on Assets

Calculated as the net profit generated during the last 12 months ended by the reporting date

divided by the total average assets for the mentioned 12 months.

Return on Equity

Calculated as the net profit generated during the last 12 months ended by the reporting date

divided by the average total equity for the mentioned 12 months.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual

or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is

accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without

appropriate professional advice after a thorough examination of the particular situation

© 2015 KPMG Armenia cjsc, a company incorporated under the Laws of the Republic of Armenia, a member firm of the KPMG

network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All

rights reserved.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

Contact us

Tigran Gasparyan

Managing Partner

KPMG in Armenia

T + 374 10 56-67-62

E [email protected]

Zaruhi Furunjyan

Head of Advisory

Manager

T + 374 10 56-67-62

E [email protected]

www.kpmg.am

mailto:[email protected]

mailto:[email protected]

armenian banking sector overview

Documents

armenian commercial

financial information

commercial banks of

financial results

armenian financial market

sector insights

financial position

financial statements