Page 41 - Small Stans and Causcasus Outlook 2022

3.5 Real economy - Armenia

3.1.1 Retail

Retail and services remain the major part of the Armenian economy.
According to 2020 statistics, 53.3% of GDP came from the services
sector, with 26.4% from industry and 11.7% from agriculture. The
service sector of the economy is growing, going from 45.7% of GDP in
2012 to 53.3% in 2020, with the corresponding decline in relative GDP
share seen in agriculture.

3.1.2 Banks
Armenia’s banking sector saw total net profits in the first nine months of
2021 of AMD66.3bn, a 13.2% increase y/y. The greatest increase was
in Ameriabank, Armenia’s leading bank, which saw AMD14.496bn in
profits, up from AMD6.852bn in the same period last year. The total
loan portfolio of the banking sector decreased by 2.9% y/y, with the total
loan portfolio amounting to AMD3.927bn with a 57% share in total
assets as of September 30. The market share of the five largest
Armenian banks – Ameriabank, ArmBusinessBank, Ardshinbank, ACBA
Bank, and Converse Bank – was 62%, with Ameriabank holding the
largest single market share at 16.8%.

During the first nine months of 2021, the total balance of current
accounts and deposits of retail and corporate clients increased by
AMD150bn, or 4.2%. As of September 30, the total balance of current
accounts and deposits of retail and corporate clients amounted to
AMD3.721bn, with its share in total liabilities totaling 62%. The total
balance of bonds issued by Armenian banks in the period increased by
AMD6bn, or 1.4%. 12 of Armenia’s 17 banks have issued bonds, with
the majority of these listed on the Armenian Securities Exchange, the
country’s only stock exchange.

In the first nine months of 2021, the total equity of Armenia’s banking
sector increased by AMD46bn (5%) to AMD927bn. The largest
component of total equity in the Armenian banking sector is share
capital (including share premium), with a 60% share of the total,
amounting to AMD554bn as of September 30. Retained earnings
(including general reserve) come second with 37% (AMD348bn),

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