Armenian Banking Sector Overview For Q1 2019 1559853297

Armenian
Banking Sector
Overview
2019 1st quarter results
May, 2019
Contents
Page
3
Basis of Preparation
At a Glance 4
Sector Highlights 5
Bank Profiles 6
Appendix 1: Shareholding Structure & General Information 23
Appendix 2: Sector Insights 25
Appendix 3: Key Financial Indicators 28
Appendix 4: Bank Contact Details 32
KPMG Experience in the Armenian Banking Sector 34
Abbreviations 37
Glossary of Terms 38
© 2019 KPMG Armenia LLC, a company incorporated under the Laws of the Republic of Armenia, a member firm of the 2
KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a
Swiss entity. All rights reserved
Basis of Preparation
This report summarizes and analyzes the financial results of the
17 commercial banks of Armenia for the 1st quarter of 2019, as
well as provides some insights into the recent developments in
the sector.
The financial information has been obtained from the published

non-audited reports for the 1st quarter of 2019 and the audited
financial statements for 2018, unless stated otherwise. 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.
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 March 2019.
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.
© 2019 KPMG Armenia LLC. All rights reserved.

At a Glance
The banking system remains the biggest part of the Armenian financial market. As of 31 March 2019,
there were 17 commercial banks operating in the Republic of Armenia. They had 544 branches in
Armenia and in Nagorno Karabakh, from which 254 were located in Yerevan. The total number of
employees in the Armenian commercial banks was about 11,674.
Key Financial Indicators of the Armenian Banking Sector (in million AMD)
Change Change
Key Financial Indicators* 2019 I Q 2018 2018 I Q 31.03.19/ 31.03.19/
31.12.18 31.03.18
Assets 5,125,444 4,909,440 4,369,612 4.4% 17.3%
Interest Earning Assets 4,030,769 3,853,401 3,482,530 4.6% 15.7%
Gross Advances to Customers 3,365,443 3,260,522 2,883,482 3.2% 16.7%
Loan portfolio** 3,126,798 3,064,805 2,705,049 2.0% 15.6%
Liabilities 4,340,682 4,164,286 3,642,531 4.2% 19.2%
Deposits*** 2,889,442 2,858,962 2,517,154 1.1% 14.8%
Equity 784,762 745,153 727,082 5.3% 7.9%
Charter Capital 461,335 455,919 428,938 1.2% 7.6%
Total Income 122,285 464,265 109,520 - 11.7%
Interest Income 101,835 383,303 90,423 - 12.6%
Non-Interest Income 10,218 36,350 8,665 - 17.9%
Net Interest Income 48,792 186,300 42,395 - 15.1%
Net Non-Interest Income 7,110 24,857 6,036 - 17.8%
Net Operating Income**** 66,133 255,769 58,863 - 12.4%
Operating Expenses (33,861) (131,186) (30,317) - 11.7%
Net Provision Expenses (12,124) (53,972) (4,313) - 181.1%
Net Profit before Taxes 20,148 70,611 24,233 - (16.9%)
Net Profit after Taxes 16,092 53,857 20,173 - (20.2%)
Other Comprehensive Income/expense (909) (1,405) 2,203 - (141.3%)
Total Comprehensive Income 15,183 52,452 22,376 - (32.1%)
* 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.
Top Ten Banks of the Armenian Banking Sector as of 31 March 2019 (in million AMD)
800,000 18,000
750,000
700,000 16,000
650,000
600,000 14,000
550,000 12,000
500,000
450,000 10,000
400,000
350,000 8,000
300,000
250,000 6,000
200,000 4,000
150,000
100,000 2,000
50,000
0 0
Ameria ABB ASHIB ACBA VTB Ineco Converse ArmSwiss AEB Ararat
Assets Loans Deposits
Equity Total Income (right axis) Net Profit (right axis)

Sector Highlights
Compared with the same period of 2018, the banking system assets
grew by 17.3% and reached AMD 5,125 billion as of 31 March 2019.
For the period ended 31 March 2019 the return on assets (ROA) for the ROA
Assets
Armenian banking system was 1.05%, which increased by 0.03 1.05%
percentage points compared with the same period of 2018.
17.3% In 2019 compared with the year ended 2018 there were a few changes
in the list of Top 10 Banks in Armenia by assets. “Armbusinessbank”
CJSC and "VTB Bank Armenia" CJSC moved up by 1 position, while
“Ardshinbank” CJSC and “InecoBank” CJSC moved down by 1 position Liquidity
each. 27.2%
Loans As of 31 March 2019 the total amount of outstanding loans grew by
15.6% compared with the same period of 2018 and reached AMD 3,127
billion.
15.6% Loan
For the period ended 31 March 2019 the ratio of loan portfolio to total
assets for the Armenian banking system was 61%. According to the portfolio/
CBA, as of 31 March 2019 the Armenian banking system liquidity ratio deposits
was 27.2%. 1.08
For the reported period the total net provision expenses of the Armenian
Deposits banking sector increased by 181% compared with the same period of
2018, and amounted to AMD 12.1 billion. ROE
The outstanding balance of deposits as of 31 March 2019 increased by 6.58%
14.8% 14.8% compared with the same date of 2018, reaching AMD 2,889
billion.
As of 31 March 2019 the loan portfolio/deposit ratio for the Armenian
banking system was 1.08. Capital
As of 31 March 2019 the total equity of banks reached AMD 784.8 adequacy
Equity billion, which exceeded the same indicator as of 31 March 2018 by 17.9%
7.9%.
For the period ended 31 March 2019 the return on equity (ROE) for the
7.9%
Armenian banking system was 6.58%. The ratio of equity to assets as of
the reported date was 15.3%. According to the CBA, the capital
adequacy ratio of Armenian banking system was 17.9%: NIM
During the period ended 31 March 2019, the banking system had total 5.3%
Total income of AMD 122.3 billion, which exceeded the total income for the
income same period of 2018 by 11.7%.
For the period ended 31 March 2019 the net interest margin for the
11.7% Cost/
Armenian banking system was 5.3%. The cost to income ratio for the
reported period was 51.2%. income
The net profit before taxes of the banks for the period ended 31 March
51.2%
2019 was AMD 20.1 billion.
The net profit after taxes of the banking system for the period ended 31
Profit March 2019 was AMD 16.1 billion, which is 20.2% lower compared
PM
20.2% with the same date of 2018.
13.2%
For the period ended 31 March 2019 the profit margin for the Armenian
banking system was 13.2%.

Bank Profiles
ACBA – Credit Agricole Bank
Key Financial Indicators*
Amount, mln AMD Change
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 398,543 349,492 319,659 7.8% 4 14.0% 24.7%
Interest Earning Assets 289,756 254,608 233,753 7.2% 4 13.8% 24.0%
Loan Portfolio 238,799 221,270 198,667 7.6% 4 7.9% 20.2%
Liabilities 332,909 285,803 256,082 7.7% 4 16.5% 30.0%
Deposits 230,721 201,775 175,541 8.0% 4 14.3% 31.4%
Equity 65,634 63,689 63,577 8.4% 3 3.1% 3.2%
Charter Capital 30,000 30,000 30,000 6.5% 7 - -
Total Income 10,691 41,229 9,583 8.7% 4 - 11.6%
Interest Income 8,693 31,946 7,642 8.5% 4 - 13.7%
Net Provision Expenses (1,046) (504) 479 8.6% 7 - (318.4%)
Net Profit after Taxes 584 6,247 2,160 3.6% 9 - (73.0%)
Total Comprehensive Income 1,314 6,041 1,883 8.7% 6 - (30.2%)
Key Indicators of the Financial Position Key Indicators of the Financial Results
400,000 12,000
350,000
10,000
300,000
250,000 8,000
200,000 6,000
150,000 4,000
100,000
2,000
50,000
- -
Assets Loan Deposits Equity (2,000)
Portfolio Total Interest NPE NPT OCI
Income Income
As of 31.03.19 As of 31.12.18 As of 31.03.18 2019 I Q 2018 I Q
Key Ratios** Rankings

Capital Adequacy 15.7%
Liquidity 28.5% Among the top ten banks by all main financial indicators.
Cost to Income Ratio 68.7%
Loan Portfolio/Assets 59.9%
Equity/Assets 16.5%
PM 5.5%
NIM 7.3%
ROE 7.2%
ROA 1.3%
0% 20% 40% 60% 80%
January February March

** 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.
6

Bank Profiles (continued)
Ameriabank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 775,896 779,747 660,032 15.1% 1 (0.5%) 17.6%
Interest Earning Assets 615,669 616,881 538,414 15.3% 1 (0.2%) 14.3%
Loan Portfolio 537,147 547,943 458,876 17.2% 1 (2.0%) 17.1%
Liabilities 682,820 689,989 576,894 15.7% 1 (1.0%) 18.4%
Deposits 393,872 399,086 340,139 13.6% 2 (1.3%) 15.8%
Equity 93,076 89,758 83,138 11.9% 1 3.7% 12.0%
Charter Capital 37,347 37,300 37,300 8.1% 3 0.1% 0.1%
Total Income 17,112 66,679 14,668 14.0% 1 - 16.7%
Interest Income 14,364 53,640 12,461 14.1% 1 - 15.3%
Net Provision Expenses (1,503) (9,404) (975) 12.4% 4 - 54.2%
Net Profit after Taxes 3,099 10,502 2,563 19.3% 1 - 20.9%
Total Comprehensive Income 3,217 10,440 2,502 21.2% 1 - 28.6%
800,000 20,000
700,000
600,000 15,000
500,000 10,000
400,000
300,000 5,000
200,000
-
100,000
- (5,000)
Assets Loan Deposits Equity Total Interest NPE NPT OCI
Portfolio Income Income

Capital Adequacy 13.9% 1st rank by the assets
Liquidity 25.6% 1st rank by the interest earning assets
1st rank by the loan portfolio
1st rank by the liabilities
Loan Portfolio/Assets 69.2% 1st rank by the equity
Equity/Assets 12.0% 1st rank by the total income
1st rank by the interest income
PM 18.1%
1st rank by the net profit after tax
NIM 5.0% 1st rank by the total comprehensive income
ROE 12.5% 2nd rank by the deposits
3rd rank by the charter capital
ROA 1.5%
Among the top ten banks by all main financial indicators.
0% 20% 40% 60% 80%
The Bank has signed subordinated loan
agreements of EUR 16.8 million with a couple
of companies managed by the company
“responsAbility Investments” to increase the
finance to the RA entrepreneurs and energy
saving projects

7

Araratbank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 221,435 220,828 211,179 4.3% 10 0.3% 4.9%
Loan Portfolio 121,968 119,978 117,541 3.9% 10 1.7% 3.8%
Liabilities 183,943 185,917 175,164 4.2% 10 (1.1%) 5.0%
Deposits 75,898 80,851 81,778 2.6% 13 (6.1%) (7.2%)
Equity 37,492 34,911 36,015 4.8% 13 7.4% 4.1%
Charter Capital 8,804 8,804 8,804 1.9% 16 - -
Total Income 4,618 18,958 4,907 3.8% 11 - (5.9%)
Interest Income 3,849 15,815 3,986 3.8% 12 - (3.4%)
Net Provision Expenses (101) (2,120) 272 0.8% 12 - (137.3%)
Net Profit after Taxes 388 515 903 2.4% 13 - (57.0%)
Total Comprehensive Income 273 182 732 1.8% 12 - (62.7%)
250,000 6,000
225,000
5,000
200,000
175,000 4,000
150,000 3,000
125,000
100,000 2,000
75,000 1,000
50,000
25,000 -
- (1,000)
Key Ratios**
Liquidity 26.2%
Equity/Assets 16.9%
PM 8.4%
NIM 3.9%
ROE (0.001%)
ROA (0.0002%)
-1% 19% 39% 59% 79%

8

Ardshinbank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 667,419 672,989 557,815 13.0% 3 (0.8%) 19.6%
Loan Portfolio 452,720 456,758 405,367 14.5% 3 (0.9%) 11.7%
Liabilities 597,795 607,569 491,114 13.8% 3 (1.6%) 21.7%
Deposits 342,648 367,182 330,168 11.9% 3 (6.7%) 3.8%
Equity 69,625 65,419 66,701 8.9% 2 6.4% 4.4%
Charter Capital 52,227 50,227 50,227 11.3% 2 4.0% 4.0%
Total Income 16,809 59,854 13,913 13.7% 2 - 20.8%
Interest Income 14,269 50,630 11,362 14.0% 2 - 25.6%
Net Provision Expenses (2,160) (7,941) (1,389) 17.8% 2 - 55.5%
800,000 17,500
700,000
600,000 12,500
500,000
400,000 7,500
300,000
200,000 2,500
100,000
-
(2,500)

Capital Adequacy 14.0% 2nd rank by the interest earning assets
Liquidity 18.4% 2nd rank by the equity
2nd rank by the charter capital
2nd rank by the total income
Loan Portfolio/Assets 67.8% 2nd rank by the interest income
Equity/Assets 10.4% 2nd rank by the net profit after taxes
PM 13.3%
2nd rank by the total comprehensive income
3rd rank by the assets
NIM 4.2% 3rd rank by the loan portfolio
ROE 9.6% 3rd rank by the liabilities
ROA 1.1% 3rd rank by the deposits
0% 20% 40% 60% 80% 100% Among the top ten banks by all main financial indicators.
The Bank signed a USD 35 million Club Trade Finance
Facility arranged by Citi with Asian Development
Bank, the proceeds will be used to provide trade
financing to support entrepreneurs in the RA

9

Armbusinessbank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 707,277 611,824 563,051 13.8% 2 15.6% 25.6%
Loan Portfolio 462,047 435,626 405,707 14.8% 2 6.1% 13.9%
Liabilities 664,465 575,856 521,664 15.3% 2 15.4% 27.4%
Deposits 527,013 473,206 393,143 18.2% 1 11.4% 34.1%
Equity 42,812 35,968 41,387 5.5% 8 19.0% 3.4%
Charter Capital 31,375 31,375 31,375 6.8% 6 - -
Total Income 13,585 51,857 12,186 11.1% 3 - 11.5%
Interest Income 10,607 41,563 9,986 10.4% 3 - 6.2%
Total Comprehensive Income (135) 1,033 799 - 17 - (116.9%)
800,000 16,000
700,000 14,000
600,000 12,000
500,000 10,000
8,000
400,000
6,000
300,000
4,000
200,000
2,000
100,000 -
- (2,000)
(4,000) Income Income
Portfolio

Capital Adequacy 13.1% 1st rank by the deposits
Liquidity 23.6% 2nd rank by the assets
Cost to Income Ratio 55.8% 2nd rank by the loan portfolio
2nd rank by the liabilities
Loan Portfolio/Assets 65.3% 3rd rank by the interest earning assets
Equity/Assets 6.1% 3rd rank by the total income
PM 3.3% 3rd rank by the interest income
NIM 2.1%
Among the top ten banks by almost all main financial
ROE 1.7% indicators.
ROA 0.1%
0% 20% 40% 60% 80%

Arsen Mikayelyan is appointed as the
Bank’s Chairman of the Board

10

Armeconombank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 228,259 221,697 195,949 4.5% 9 3.0% 16.5%
Loan Portfolio 133,311 133,630 118,436 4.3% 8 (0.2%) 12.6%
Liabilities 190,745 188,684 166,276 4.4% 8 1.1% 14.7%
Deposits 97,575 95,829 88,326 3.4% 10 1.8% 10.5%
Equity 37,514 33,013 29,673 4.8% 12 13.6% 26.4%
Charter Capital 25,635 22,266 13,709 5.6% 9 15.1% 87.0%
Total Income 5,822 21,839 4,979 4.8% 10 - 16.9%
Interest Income 4,769 17,664 3,932 4.7% 10 - 21.3%
Net Provision Expenses (194) (435) (73) 1.6% 11 - 165.2%
Net Profit after Taxes 547 2,078 438 3.4% 11 - 25.0%
Total Comprehensive Income 718 1,885 676 4.7% 8 - 6.1%
250,000 7,000
6,000
200,000
5,000
150,000 4,000
3,000
100,000
2,000
50,000 1,000
-
-
(1,000)
Key Ratios**
Liquidity 23.6%
Equity/Assets 16.4%
PM 9.4%
NIM 5.7%
ROE 6.5%
ROA 1.0%
0% 20% 40% 60% 80%

The Bank and Incofin CVSO CVBA-SO The Bank has signed a USD 10 million equivalent
investment company have signed a loan AMD loan agreement with the EBRD, the
agreement, the proceeds will be used to proceeds will be used to develop and finance the
finance the micro and small companies RA micro, small and medium companies operating
with the management or participation of women

11

ArmSwissBank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 232,317 230,405 187,882 4.5% 8 0.8% 23.7%
Loan Portfolio 78,863 73,630 66,199 2.5% 14 7.1% 19.1%
Liabilities 186,469 187,562 146,814 4.3% 9 (0.6%) 27.0%
Deposits 91,668 93,895 79,655 3.2% 12 (2.4%) 15.1%
Equity 45,849 42,843 41,069 5.8% 6 7.0% 11.6%
Charter Capital 8,753 8,753 8,753 1.9% 17 - -
Total Income 5,978 20,609 4,407 4.9% 8 - 35.6%
Interest Income 5,089 18,252 4,013 5.0% 8 - 26.8%
Net Provision Expenses (568) (1,506) 188 4.7% 8 - 401.3%
Net Profit after Taxes 1,363 5,054 1,622 8.5% 6 - (16.0%)
Total Comprehensive Income 346 6,923 4,772 2.3% 11 - (92.7%)
250,000 7,000
6,000
200,000 5,000
4,000
150,000 3,000
2,000
100,000
1,000
50,000 -
(1,000)
- (2,000)
Key Ratios**
Liquidity 55.9%
Equity/Assets 19.7%
PM 22.8%
NIM 4.0%
ROE 11.0%
ROA 2.3%
0% 20% 40% 60%

12

Artsakh Bank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 154,125 153,834 140,915 3.0% 13 0.2% 9.4%
Interest Earning Assets 133,456 133,919 117,168 3.3% 13 (0.3%) 13.9%
Loan Portfolio 81,884 83,290 71,150 2.6% 13 (1.7%) 15.1%
Liabilities 116,547 118,825 108,174 2.7% 13 (1.9%) 7.7%
Deposits 93,318 98,110 91,976 3.2% 11 (4.9%) 1.5%
Equity 37,578 35,009 32,741 4.8% 11 7.3% 14.8%
Charter Capital 23,261 23,261 23,261 5.0% 10 - -
Total Income 4,209 15,943 3,731 3.4% 12 - 12.8%
Interest Income 3,856 14,896 3,441 3.8% 11 - 12.0%
Net Provision Expenses 333 2,367 1,789 - 17 - (81.4%)
160,000 5,000
4,000
120,000
3,000
80,000 2,000
1,000
40,000
-
- (1,000)
Total Interest NPE NPT OCI
Assets Loan Deposits Equity
Income Income
Portfolio

Capital Adequacy 75.7% 3rd rank by the total comprehensive income
Liquidity 31.5%
Equity/Assets 24.4%
PM 39.8%
NIM 6.4%
ROE 14.0%
ROA 3.3%
0% 20% 40% 60% 80%100%

13

Byblos Bank Armenia
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 94,460 94,273 88,242 1.8% 16 0.2% 7.0%
Loan Portfolio 32,809 34,744 32,841 1.0% 16 (5.6%) (0.1%)
Liabilities 66,786 67,128 64,178 1.5% 16 (0.5%) 4.1%
Deposits 53,778 53,623 47,790 1.9% 16 0.3% 12.5%
Equity 27,673 27,146 24,064 3.5% 17 1.9% 15.0%
Charter Capital 26,249 26,249 23,825 5.7% 8 - 10.2%
Total Income 2,146 7,124 1,508 1.8% 16 - 42.4%
Interest Income 1,717 6,457 1,507 1.7% 16 - 13.9%
Net Provision Expenses 27 (242) (57) - 15 - (147.0%)
Total Comprehensive Income 528 998 526 3.5% 10 - 0.4%
100,000 2,500
80,000 2,000
1,500
60,000
1,000
40,000
500
20,000
-
- (500)
As of 31.03.19 As of 31.12.18 As of 31.03.18
2019 I Q 2018 I Q
Key Ratios**
Liquidity 50.2%
Equity/Assets 29.3%
PM 32.2%
NIM 3.3%
ROE 6.7%
ROA 1.9%
0% 10% 20% 30% 40% 50% 60%

14

Converse Bank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 287,617 281,119 251,543 5.6% 7 2.3% 14.3%
Loan Portfolio 201,636 196,282 155,211 6.4% 6 2.7% 29.9%
Liabilities 246,916 242,085 215,091 5.7% 7 2.0% 14.8%
Deposits 189,559 187,214 175,001 6.6% 6 1.3% 8.3%
Equity 40,701 39,034 36,452 5.2% 9 4.3% 11.7%
Charter Capital 16,417 16,417 16,417 3.6% 14 - -
Total Income 7,008 26,659 6,178 5.7% 7 - 13.4%
Interest Income 5,788 21,115 4,860 5.7% 7 - 19.1%
Net Provision Expenses (41) (984) (343) 0.3% 13 - (88.2%)
300,000 8,000
250,000 7,000
6,000
200,000
5,000
150,000 4,000
100,000 3,000
2,000
50,000 1,000
- -
Assets Loan Deposits Equity (1,000)
Portfolio Total Interest NPE NPT OCI
As of 31.03.19 As of 31.12.18 As of 31.03.18 Income Income
Key Ratios** . 2019 I Q 2018 I Q

Liquidity 24.6%
Equity/Assets 14.2%
PM 20.0%
NIM 5.7%
ROE 13.7%
ROA 2.0%
0% 20% 40% 60% 80% 100%

15

Evocabank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 143,524 130,298 105,973 2.8% 14 10.2% 35.4%
Loan Portfolio 81,988 75,424 60,170 2.6% 12 8.7% 36.3%
Liabilities 113,932 101,393 76,381 2.6% 14 12.4% 49.2%
Deposits 63,101 63,934 48,710 2.2% 14 (1.3%) 29.5%
Equity 29,592 28,905 29,592 3.8% 16 2.4% 0.0%
Charter Capital 17,950 17,950 17,950 3.9% 13 - -
Total Income 3,137 10,463 2,308 2.6% 15 - 35.9%
Interest Income 2,357 8,887 1,728 2.3% 15 - 36.5%
Net Provision Expenses (443) (356) (105) 3.7% 9 - 324%
Net Profit after Taxes 337 1,093 423 2.1% 14 - (20.3%)
Total Comprehensive Income 250 1,079 446 1.6% 13 - (44.0%)
150,000 3,500
135,000 3,000
120,000 2,500
105,000 2,000
90,000 1,500
75,000 1,000
60,000 500
45,000
-
30,000
(500)
15,000
- (1,000)
Portfolio
Income Income
2019 I Q 2018 I Q
As of 31.03.19 As of 31.12.18 As of 31.03.18
Key Ratios**
Liquidity 20.4%
Equity/Assets 20.6%
PM 10.7%
NIM 5.3%
ROE 3.4%
ROA 0.8%
0% 10%20%30%40%50%60%

16

HSBC Bank Armenia
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 198,371 196,669 213,713 3.9% 12 0.9% (7.2%)
Loan Portfolio 111,267 103,780 92,683 3.6% 11 7.2% 20.1%
Liabilities 158,791 157,114 173,912 3.7% 12 1.1% (8.7%)
Deposits 152,099 152,952 163,402 5.3% 8 (0.6%) (6.9%)
Equity 39,580 39,556 39,801 5.0% 10 0.1% (0.6%)
Charter Capital 18,434 18,434 18,434 4.0% 12 - -
Total Income 3,473 14,898 3,664 2.8% 13 - (5.2%)
Interest Income 2,761 11,106 2,745 2.7% 14 - 0.6%
Net Provision Expenses (408) (1,513) 490 3.4% 10 - (183.3%)
250,000 4,000
3,500
200,000 3,000
2,500
150,000 2,000
1,500
100,000 1,000
500
50,000 -
(500)
- (1,000)
Key Ratios**
Liquidity 34.7%
Equity/Assets 20.0%
PM 1.2%
NIM 5.6%
ROE -0.3%
ROA -0.1%
-20% 0% 20% 40% 60% 80%100%

17

ID Bank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 133,006 122,074 134,208 2.6% 15 9.0% (0.9%)
Interest Earning Assets 107,645 103,421 108,745 2.7% 15 4.1% (1.0%)
Loan Portfolio 65,165 61,471 74,978 2.1% 15 6.0% (13.1%)
Liabilities 88,579 81,810 86,797 2.0% 15 8.3% 2.1%
Deposits 58,470 56,320 65,237 2.0% 15 3.8% (10.4%)
Equity 44,427 40,264 47,411 5.7% 7 10.3% (6.3%)
Charter Capital 33,972 33,972 33,972 7.4% 4 - -
Total Income 3,196 14,879 4,279 2.6% 14 - (25.3%)
Interest Income 2,785 11,634 2,862 2.7% 13 - (2.7%)
Net Provision Expenses 95 (1,814) 66 - 16 - 43.7%
Net Profit after Taxes 734 2,183 1,537 4.6% 7 - (52.2%)
160,000 5,000
140,000
4,000
120,000
100,000 3,000
80,000 2,000
60,000
1,000
40,000
20,000 -
-
(1,000)
Key Ratios**
Capital Adequacy 36.1% .
Liquidity 30.1%
Equity/Assets 33.4%
PM 23.0%
NIM 6.8%
ROE 3.0%
ROA 1.0%
0% 20% 40% 60% 80%

Mher Abrahamyan was appointed as the
Bank’s Chairman of the Management Board

18

Inecobank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 306,039 292,741 273,073 6.0% 6 4.5% 12.1%
Loan Portfolio 214,476 206,417 177,462 6.9% 5 3.9% 20.9%
Liabilities 253,031 241,461 222,872 5.8% 6 4.8% 13.5%
Deposits 159,419 164,378 138,527 5.5% 7 (3.0%) 15.1%
Equity 53,008 51,280 50,201 6.8% 4 3.4% 5.6%
Charter Capital 14,546 14,546 14,546 3.2% 15 - -
Total Income 8,916 34,415 8,309 7.3% 5 - 7.3%
Interest Income 7,777 29,620 7,129 7.6% 5 - 9.1%
350,000 10,000
300,000 8,000
250,000
6,000
200,000
4,000
150,000
100,000 2,000
50,000 -
- (2,000)

Capital Adequacy 16.0% 3rd rank by the net profit after taxes
Liquidity 20.1%
indicators.
Equity/Assets 17.3%
PM 20.1%
NIM 7.9%
ROE 15.0%
ROA 2.7%
0% 20% 40% 60% 80%

The Bank has signed a subordinated loan The company DWM became the Bank’s new
agreement of USD 15 million with Blue Orchard shareholder
Microfinance Fund. The proceeds will be used
to finance the Bank’s operations by
concentrating on the SME segment of the
customers

19

Mellat Bank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 53,884 53,806 53,399 1.1% 17 0.1% 0.9%
Interest Earning Assets 37,927 34,646 37,973 0.9% 17 9.5% (0.1%)
Loan Portfolio 9,590 8,771 6,448 0.3% 17 9.3% 48.7%
Liabilities 17,031 17,503 19,384 0.4% 17 (2.7%) (12.1%)
Deposits 5,949 6,055 4,998 0.2% 17 (1.8%) 19.0%
Equity 36,853 36,304 34,014 4.7% 14 1.5% 8.3%
Charter Capital 32,100 32,100 32,100 7.0% 5 - -
Total Income 1,140 4,212 998 0.9% 17 - 14.2%
Interest Income 829 3,434 823 0.8% 17 - 0.8%
Net Provision Expenses (21) 82 (63) 0.2% 14 - (66.4%)
Total Comprehensive Income 550 2,074 390 3.6% 9 - 41.0%
60,000 1,200
50,000 1,000
800
40,000
600
30,000
400
20,000 200
10,000 -
- (200) Total Interest NPE NPT OCI
Assets Loan Deposits Equity Income Income
Portfolio
Key Ratios**
Liquidity 74.7%
Equity/Assets 68.4%
PM 48.2%
NIM 9.2%
ROE 6.3%
ROA 4.2%
0% 100% 200%

20

Unibank
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 212,480 209,800 194,974 4.1% 11 1.3% 9.0%
Loan Portfolio 131,463 134,279 130,619 4.2% 9 (2.1%) 0.6%
Liabilities 179,543 177,251 162,413 4.1% 11 1.3% 10.5%
Deposits 151,127 151,452 135,587 5.2% 9 (0.2%) 11.5%
Equity 32,938 32,548 32,561 4.2% 15 1.2% 1.2%
Charter Capital 20,490 20,490 20,490 4.4% 11 - -
Total Income 5,868 24,619 6,174 4.8% 9 - (5.0%)
Interest Income 4,775 20,008 5,491 4.7% 9 - (13.0%)
Net Provision Expenses (1,090) (5,525) (1,300) 9.0% 6 - (16.2%)
Total Comprehensive Income 123 1,478 388 0.8% 14 - (68.3%)
240,000 7,000
6,000
200,000 5,000
160,000 4,000
3,000
120,000 2,000
80,000 1,000
-
40,000 (1,000)
- (2,000)
Income Income
Portfolio
2019 I Q 2018 I Q
As of 31.03.19 As of 31.12.18 As of 31.03.18
Key Ratios**
Liquidity 25.4%
Equity/Assets 15.5%
PM 3.6%
NIM 6.2%
ROE 2.2%
ROA 0.4%
0% 20% 40% 60% 80%

A new branch was opened in Yerevan

21

VTB Bank (Armenia)
Share in
Rank 31.03.19/ 31.03.19/
2019 I Q 2018 2018 I Q total, %
31.12.18 31.03.18
Assets 310,789 287,842 218,005 6.1% 5 8.0% 42.6%
Loan Portfolio 171,665 171,511 132,695 5.5% 7 0.1% 29.4%
Liabilities 260,381 238,336 179,320 6.0% 5 9.2% 45.2%
Deposits 203,226 213,098 157,177 7.0% 5 (4.6%) 29.3%
Equity 50,409 49,506 38,685 6.4% 5 1.8% 30.3%
Charter Capital 63,776 63,776 47,776 13.8% 1 - 33.5%
Total Income 8,575 30,029 7,727 7.0% 6 - 11.0%
Interest Income 7,550 26,634 6,454 7.4% 6 - 17.0%
Net Provision Expenses (2,183) (12,455) (2,216) 18.0% 1 - (1.5%)
Net Profit after Taxes 4 (4,895) 151 0.0% 17 - (97.3%)
Total Comprehensive Income 25 (5,100) (425) 0.2% 15 - 105.9%
350,000 10,000
300,000 8,000
250,000 6,000
200,000 4,000
150,000 2,000
100,000 -
50,000 (2,000)
- (4,000)
Income Income
Portfolio

Capital Adequacy 13.0% 1st rank by the charter capital
Liquidity 30.4%
Loan Portfolio/Assets 55.2% indicators.
Equity/Assets 16.2%
PM 0.05%
NIM 9.7%
ROE (11.3%)
ROA (1.9%)
-20% 0% 20% 40% 60% 80%
A new branch was opened in Agarak

22

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 and the USA. There are several international organizations that have shares in several
Armenian banks (e.g. EBRD, ADB).
The shareholding structure and information on branches and the staff for each bank is presented
below*.
ACBA-Credit Agricole Bank Ameriabank Ararat Bank
Shareholders (> 5%): Shareholders (> 5%): Shareholders (> 5%):
ACBA Federation cjsc (72%) Ameria Group (CY) Limited Flash Ltd. (72.73%)
Credit Agricole S.A (15.6%) (56.53%) Beglaryan Barsegh (18.33%)
Sacam International SJSC (12.4%) EBRD (17.77%)
ADB (13.97%)
ESPS Holding Limited (11.73%)
Branches: 58 (18 in Yerevan) Branches: 17 (11 in Yerevan) Branches: 61 (31 in Yerevan)

Staff: 1,348 employees Staff: 933 employees Staff: 932 employees
Ardshinbank Armbusinessbank Armeconombank

"Arins Group" LLC (67.96 %) Vitaliy Sarkis Grigoryants (100%) Saribek Sukiasyan (28.32%)
"Region" Financial industrial Khachatur Sukiasyan (16.29%)
corporation CJSC (29.52 %) Eduard Sukiasyan (10.66%)
Robert Sukiasyan (16.86%)

Staff: 1,299 employees Staff: 949 employees Staff: 812 employees
ArmSwissBank Artsakh Bank Byblos Bank Armenia

Shareholders (> 5%): Shareholders (> 5%):
Shareholders (> 5%):
Armenian Business Foundation Byblos Bank S.A.L. (100 %)
“HVS Holding” LLC (100%)
CJSC (51.72%)
Artsakh Investment Fund (43.55%)
Branches: 1 (1 in Yerevan)
Branches: 23 (8 in Yerevan) Branches: 2 (2 in Yerevan)
Staff: 141 employees
Staff: 479 employees Staff: 85 employees
• The figures presented in different color, bold and italic form are those changed during the 2nd half of 2018.
23

Appendix 1
Shareholding Structure & General Information (continued)
Converse Bank Evocabank HSBC Bank Armenia
Advanced Global Investments Prometey City LLC (95.8%) HSBC Europe BV (70%)
LLC (80.94%) Wings Establishment (30%)
HayPost Trust Management (14%)
The Armenian Saint Apostolic
Church (5%)

Staff: 765 employees Staff: 283 employees Staff: 398 employees
ID Bank Inecobank Mellat Bank

FISTOCO LTD. (59.68 %) Avetis Baloyan (32.98%) Bank Mellat of I.R.I (100%)
Credit Bank S.A.L. (40.32 %) Karen Safaryan (27.90%)
EBRD (12.65%)
agRIF Cooperatief U.A (10.01%)
Branches: 13 (8 in Yerevan) Branches: 25 (17 in Yerevan) Branches: 1 (Yerevan)

Staff: 414 employees Staff: 812 employees Staff: 52 employees
Unibank VTB Bank Armenia

Shareholders (> 5%): Shareholders (> 5%):
Uniholding Gigi Limited (87.8 %) VTB OJSC (100%)
Branches: 47 (27 in Yerevan) Branches: 70 (25 in Yerevan)

Staff: 776 employees Staff: 1,268 employees
• The figures presented in different color, bold and italic form are those changed during the 2nd half of 2018.
24

Appendix 2
Sector Insights
Assets
As of 31 March 2019 the assets grew in 15 banks, whereas 2 banks suffered decreases, as
compared with the same period of 2018. The interest earning assets comprised 78.6% of the total
assets of the banks. As of 31 March 2019 the interest earning assets of the banks increased by
15.7% compared with 31 March 2018. In the meantime, the interest income increased by 12.6%
as compared with the same period of the previous year.
The net interest margin was 5.3% for the reviewed period.
As of 31 March 2019 "AmeriaBank" CJSC had the highest value of assets - about AMD 775.9
billion, which is 15.1% of the total assets of the banking sector.
"Mellat Bank" CJSC had the lowest level – AMD 53.9 billion (1.1% in total assets).
It is worth mentioning, that the top five banks (ranked by assets) totaled 55.8% of the assets of
the banking system as of 31 March 2019.
Nevertheless, the banking industry concentration is not high and is defined as unconcentrated
according to the Herfindahl-Hirschman Index, which has the value of 0.087. Compared with the
same period of 2018 the HHI has increased by 0.003 points.
Loan portfolio
The top five banks (ranked by loans) recorded 60.9% of the total loan portfolio as of 31 March
2019.
The major part (92.4%) of the total sum of the outstanding loans was provided to the residents of
Armenia, from which 51.7% were companies (only 1% of this amount was provided to the state
owned companies), 40.8% - to the households, and only a small part to non for profit organizations
and other financial organizations (together 7.5%). Compared with the same period of the previous
year the share of loans to households in the total amount of outstanding loans increased by 4.65
percentage points and the share of companies decreased by 5.09 percentage point.
Structure of loans by creditors*
As for the base currencies of the

Private sector loans, it should be noted that
households, non for profit
Households organizations and other financial
institutions are mainly provided with
Private Non for profit loans in AMD (75.7%, 54.1% and
Households sector 74.4% of the total loans provided to
41% 51% OFI
them, respectively) in contrast to
State owned companies, which prefer loans in
companies foreign currencies (77.3% of total
loans provided to them, respectively).
* The loans structure is presented only based on the loans provided to the residents
25

Appendix 2
Sector Insights (continued)
The consumer loans, loans to the industry and loans to the trade sector traditionally comprise the
major part of the total loans of the banks, 26.2%, 17.8% and 15.6% respectively for the reviewed
period. The biggest growth in lending was in the transport and communication sector (compared to
the 31 March 2018, the volume of loans grew by 42.4%).
Structure of loans by economy sectors
8% Industry The biggest loan portfolio
18%
9% belonged to “Ameriabank" CJSC –
Agriculture
AMD 537.1 billion, which
Construction comprised 17.2% of the loan
5% portfolio of the banking system
Transport and for the reported period.
Communication
6% Trade
As of 31 March 2019 the
26% 3% Service sector loans/deposits ratio was 1.082
compared with 1.075 calculated
Consumer loans
as of 31 March 2018.
16% Mortgage
9% Other
Net Provision Expenses
As of 31 March 2019 the banking system total net provision expenses increased by 181% and
reached AMD 12.1 billion.
Liabilities
As of 31 March 2019 the banking system total liabilities grew by 19.2%, compared with the same
figure as of 31 March 2018, to reach AMD 4,340.7 billion, of which 66.6% are deposits.
Deposits
As of 31 March 2019 the biggest share of term deposits was held by households (76%), while the
biggest share of demand deposits was held by private sector (44.4%). The major part of
outstanding balance of the deposits was from the residents (74.8%), 68.7% of which were term
deposits. The deposits were held mainly in foreign currencies (60.1%).
Structure of deposits
Non
On residents
demand* 25%
31% AMD
40%
Other
currency
Term 60%
Residents
69%
75%
* The indicators of the deposits duration are presented only based on the deposits from the residents
26

Appendix 2
Sector Insights (continued)
Structure of deposits* As the diagram shows, the households
had the biggest share (66%) in the total
amount of deposits from residents
followed by the private companies which
held (19.6%) of the total deposits from
residents.
The highest level of deposits was held

by “Armbusinessbank" CJSC - about
AMD 527 billion, which comprises
18.2% of the total deposits of the
banking system of Armenia.
As of 31 March 2019 three banks had a

Households Private companies decrease in deposits compared to the
Non for Profit Organizations OFI same date of 2018.
State owned companies Other
Equity
As of 31 March 2019 the equity increased by 7.9% compared to the same period of 2018, while
for the same period the charter capital increased by 7.6%.
The total equity to total assets ratio was 15.3%, which is 1.3 percentage points lower compared
to the same ratio of 2018 (16.6%).
As of 31 March 2019 “Ameriabank" CJSC had the highest level of equity - about AMD 93.1
billion, which is 11.9% of the total equity of the banking system. "Byblos Bank Armenia" CJSC
had the lowest level – AMD 27.7 billion (3.5% in total equity). 42.3% of the total equity of the
banking system belonged to the top five banks (ranked by the equity) as of 31 March 2019.
Income
The income from interest was about AMD 101.8 billion, which is about 83.3% (2018 same period
82.6%) of the total income of the banking system.
The total income of the banking system increased by 11.7% compared with the same period of
the previous year and reached AMD 122.3 billion in 2019. 54.9% of total income of the banking
system belonged to the top 5 banks (ranked by the total income).
In the reporting period 13 banks increased their income compared with the same period of 2018,
while in 4 banks the income decreased during the same period.
Profit/loss
During the reported period all the banks operating in Armenia were profitable (totaled AMD 20.1
billion profit before taxes).
The net profit after taxes of the banking system for the period ended 31 March 2019 was AMD
16.1 billion, which was 20.2% less compared to the same period in 2018. The decrease in net
profit after taxes was mainly due to the 181% increase of net provision expenses for the period
ended 31 March 2019 compared to the same period in 2018.
* The deposits structure is presented only based on the deposits from the residents
27

Appendix 3
Key Financial Indicators
Key Indicators of the Financial Position as of 31.03.2019
Interest Gross
Charter
AMD Million Assets Earning Advances to Loans Liabilities Deposits Equity
Capital
Assets Customers
"ACBA-Credit Agricole
1 398,543 289,756 260,480 238,799 332,909 230,721 65,634 30,000
Bank" CJSC
2 "AmeriaBank" CJSC 775,896 615,669 548,842 537,147 682,820 393,872 93,076 37,347
3 "AraratBank" OJSC 221,435 180,379 142,733 121,968 183,943 75,898 37,492 8,804
4 "Ardshinbank" CJSC 667,419 538,016 485,356 452,720 597,795 342,648 69,625 52,227
5 "ArmBusinessBank" CJSC 707,277 537,421 495,062 462,047 664,465 527,013 42,812 31,375
6 "ArmEconomBank" OJSC 228,259 175,165 147,238 133,311 190,745 97,575 37,514 25,635
7 "ArmSwissBank" CJSC 232,317 214,035 85,698 78,863 186,469 91,668 45,849 8,753
8 "ArtsakhBank" CJSC 154,125 133,456 96,185 81,884 116,547 93,318 37,578 23,261
"Byblos Bank Armenia"
9 94,460 80,916 43,214 32,809 66,786 53,778 27,673 26,249
CJSC
10 "Converse Bank" CJSC 287,617 231,200 204,686 201,636 246,916 189,559 40,701 16,417
11 "Evocabank" CJSC 143,524 112,104 94,756 81,988 113,932 63,101 29,592 17,950
"HSBC Bank Armenia"
12 198,371 148,302 125,315 111,267 158,791 152,099 39,580 18,434
CJSC
13 "ID Bank" CJSC 133,006 107,645 76,583 65,165 88,579 58,470 44,427 33,972
14 "InecoBank" CJSC 306,039 247,150 214,476 214,476 253,031 159,419 53,008 14,546
15 "Mellat Bank" CJSC 53,884 37,927 11,164 9,590 17,031 5,949 36,853 32,100
16 "UniBank" OJSC 212,480 168,445 149,590 131,463 179,543 151,127 32,938 20,490
17 "VTB Bank Armenia" CJSC 310,789 213,185 184,065 171,665 260,381 203,226 50,409 63,776
28

Appendix 3
Key Financial Indicators (continued)
Key Indicators of the Financial Results for the period ended 31.03.2019
Net Net
Non- Net Net Net Net Profit
Total Interest Non- Operating Profit
AMD Million Interest Interest Operating Provision before
Income Income Interest Expenses after
Income Income Income* Expenses taxes
Income taxes
1 10,691 8,693 990 4,479 562 6,049 (4,156) (1,046) 847 584
Bank" CJSC
2 "AmeriaBank" CJSC 17,112 14,364 1,091 7,234 790 9,681 (4,289) (1,503) 3,888 3,099
3 "AraratBank" OJSC 4,618 3,849 396 1,523 259 2,154 (1,689) (101) 364 388
4 "Ardshinbank" CJSC 16,809 14,269 1,273 5,733 860 7,859 (2,902) (2,160) 2,797 2,230
5 "ArmBusinessBank" CJSC 13,585 10,607 1,285 2,282 1,089 5,064 (2,823) (1,593) 648 448
6 "ArmEconomBank" OJSC 5,822 4,769 529 2,261 407 3,192 (2,315) (194) 683 547
7 "ArmSwissBank" CJSC 5,978 5,089 315 1,889 286 2,750 (420) (568) 1,763 1,363
8 "ArtsakhBank" CJSC 4,209 3,856 123 2,048 86 2,365 (743) 333 1,955 1,675
9 2,146 1,717 29 745 10 1,155 (314) 27 868 692
CJSC
10 "Converse Bank" CJSC 7,008 5,788 648 3,149 429 4,150 (2,340) (41) 1,770 1,399
11 "Evocabank" CJSC 3,137 2,357 578 1,028 428 1,658 (796) (443) 418 337
"HSBC Bank Armenia"
12 3,473 2,761 587 1,996 475 2,596 (2,136) (408) 52 42
CJSC
13 "ID Bank" CJSC 3,196 2,785 158 1,744 100 2,096 (1,259) 95 933 734
14 "InecoBank" CJSC 8,916 7,777 621 4,622 265 5,404 (1,943) (1,228) 2,234 1,789
15 "Mellat Bank" CJSC 1,140 829 202 818 136 1,063 (380) (21) 662 550
16 "UniBank" OJSC 5,868 4,775 633 2,490 494 3,444 (2,091) (1,090) 264 211
17 "VTB Bank Armenia" CJSC 8,575 7,550 760 4,753 434 5,452 (3,265) (2,183) 4 4
* Net operating income is before provisions and administrative expenses.
29

Appendix 3
Interest Gross
Charter
Capital
Assets Customers
1 349,492 254,608 226,966 221,270 285,803 201,775 63,689 30,000
Bank" CJSC
2 "AmeriaBank" CJSC 779,747 616,881 552,890 547,943 689,989 399,086 89,758 37,300
3 "AraratBank" OJSC 220,828 170,281 136,916 119,978 185,917 80,851 34,911 8,804
9 94,273 80,595 43,995 34,744 67,128 53,623 27,146 26,249
CJSC
11 "Evocabank" CJSC 130,298 98,174 88,315 75,424 101,393 63,934 28,905 17,950
"HSBC Bank Armenia"
12 196,669 144,956 121,140 103,780 157,114 152,952 39,556 18,434
CJSC
13 "ID Bank" CJSC 122,074 103,421 74,539 61,471 81,810 56,320 40,264 33,972
14 "InecoBank" CJSC 292,741 239,195 207,478 206,417 241,461 164,378 51,280 14,546
15 "Mellat Bank" CJSC 53,806 34,646 8,848 8,771 17,503 6,055 36,304 32,100
16 "UniBank" OJSC 209,800 163,903 147,263 134,279 177,251 151,452 32,548 20,490
30

Appendix 3
Net
Non- Net Net Non- Net Net Net Profit
Total Interest Operating Profit
AMD Million Interest Interest Interest Operating Provision before
Income Income Expenses after
Income Income Income Income* Expenses taxes
taxes
1 41,229 31,946 4,146 17,769 2,416 25,322 (16,745) (504) 8,073 6,247
Bank" CJSC
2 "AmeriaBank" CJSC 66,679 53,640 4,511 27,331 3,400 39,258 (16,530) (9,404) 13,324 10,502
3 "AraratBank" OJSC 18,958 15,815 1,566 6,954 747 9,279 (5,971) (2,120) 1,188 515
4 "Ardshinbank" CJSC 59,854 50,630 5,269 19,677 3,755 27,386 (11,259) (7,941) 8,186 6,472
5 "ArmBusinessBank" CJSC 51,857 41,563 4,749 8,588 3,388 17,519 (8,880) (7,453) 1,186 853
6 "ArmEconomBank" OJSC 21,839 17,664 2,126 8,742 1,636 12,427 (9,339) (435) 2,653 2,078
7 "ArmSwissBank" CJSC 20,609 18,252 235 7,379 113 9,613 (1,778) (1,506) 6,329 5,054
8 "ArtsakhBank" CJSC 15,943 14,896 440 7,634 299 8,540 (3,349) 2,367 7,558 6,062

9 7,124 6,457 117 2,321 48 2,919 (1,193) (242) 1,484 1,234
CJSC
10 "Converse Bank" CJSC 26,659 21,115 2,713 11,479 1,841 16,152 (8,963) (984) 6,206 4,895
11 "Evocabank" CJSC 10,463 8,887 673 4,596 27 5,526 (3,741) (356) 1,429 1,093
"HSBC Bank Armenia"

12 14,898 11,106 2,751 7,501 2,244 10,785 (8,594) (1,513) 679 555
CJSC
13 "ID Bank" CJSC 14,879 11,634 739 7,124 284 9,914 (5,208) (1,814) 2,893 2,183
14 "InecoBank" CJSC 34,415 29,620 2,142 17,522 895 21,070 (6,988) (4,169) 9,913 8,004
15 "Mellat Bank" CJSC 4,212 3,434 584 3,309 540 4,044 (1,485) 82 2,641 2,074
16 "UniBank" OJSC 24,619 20,008 2,186 10,518 1,821 14,763 (7,780) (5,525) 1,457 931
17 "VTB Bank Armenia" CJSC 30,029 26,634 1,403 17,856 1,403 21,251 (13,383) (12,455) (4,587) (4,895)
* Net operating income is before provisions and administrative expenses.
31

Appendix 3
Interest Gross
Charter
Capital
Assets Customers
1 319,659 233,753 209,907 198,667 256,082 175,541 63,577 30,000
Bank" CJSC
2 "AmeriaBank" CJSC 660,032 538,414 472,636 458,876 576,894 340,139 83,138 37,300
3 "AraratBank" OJSC 211,179 172,259 132,045 117,541 175,164 81,778 36,015 8,804
9 88,242 77,233 42,680 32,841 64,178 47,790 24,064 23,825
CJSC
11 "Evocabank" CJSC 105,973 83,846 72,140 60,170 76,381 48,710 29,592 17,950
"HSBC Bank Armenia"
12 213,713 134,801 112,026 92,683 173,912 163,402 39,801 18,434
CJSC
13 "ID Bank" CJSC 134,208 108,745 77,917 74,978 86,797 65,237 47,411 33,972
14 "InecoBank" CJSC 273,073 220,363 182,785 177,462 222,872 138,527 50,201 14,546
15 "Mellat Bank" CJSC 53,399 37,973 10,496 6,448 19,384 4,998 34,014 32,100
16 "UniBank" OJSC 194,974 158,468 140,872 130,619 162,413 135,587 32,561 20,490
32
© 2018 KPMG Armenia cjsc. All rights reserved.
Appendix 3
Net Net
Non- Net Net Net Net Profit
Total Interest Non- Operating Profit
AMD Million Interest Interest Operating Provision before
Income Income Interest Expenses after
Income Income Income* Expenses taxes
Income taxes
1 9,583 7,642 932 4,379 613 6,000 (3,658) 479 2,821 2,160
Bank" CJSC
2 "AmeriaBank" CJSC 14,668 12,461 1,017 5,904 807 7,900 (3,767) (975) 3,158 2,563
3 "AraratBank" OJSC 4,907 3,986 348 1,780 182 2,535 (1,747) 272 1,060 903
4 "Ardshinbank" CJSC 13,913 11,362 1,084 4,439 779 6,685 (2,586) (1,389) 2,711 2,190
5 "ArmBusinessBank" CJSC 12,186 9,986 975 1,317 837 3,379 (2,380) (263) 736 570
6 "ArmEconomBank" OJSC 4,979 3,932 666 1,773 538 2,692 (2,130) (73) 489 438
7 "ArmSwissBank" CJSC 4,407 4,013 61 1,706 31 2,071 (337) 188 1,922 1,622
8 "ArtsakhBank" CJSC 3,731 3,441 115 1,663 73 1,912 (772) 1,789 2,929 2,829
9 1,508 1,507 25 495 10 480 (263) (57) 160 203
CJSC
10 "Converse Bank" CJSC 6,178 4,860 575 2,611 366 3,721 (2,149) (343) 1,229 1,008
11 "Evocabank" CJSC 2,308 1,728 339 795 190 1,227 (696) (105) 426 423
"HSBC Bank Armenia"
12 3,664 2,745 687 1,724 576 2,533 (2,111) 490 911 729
CJSC
13 "ID Bank" CJSC 4,279 2,862 376 1,686 270 2,996 (1,122) 66 1,940 1,537
14 "InecoBank" CJSC 8,309 7,129 476 4,040 231 4,976 (1,617) (813) 2,546 2,029
15 "Mellat Bank" CJSC 998 823 137 800 136 973 (371) (63) 539 390
16 "UniBank" OJSC 6,174 5,491 282 2,945 192 3,537 (1,697) (1,300) 541 428
17 "VTB Bank Armenia" CJSC 7,727 6,454 571 4,338 204 5,245 (2,914) (2,216) 114 151
33
© 2018 KPMG Armenia cjsc. All rights reserved.
Appendix 4
Bank Contact Details
ACBA-Credit Agricole Bank Ameria bank Ararat Bank
Director: Ashot Osipyan

Director: Hakob Andreasyan Director: Artak Hanesyan Address: 19 Pushkin str.,
Address: 82-84 Arami str., Address: 2 Vazgen Sargsyan str., Yerevan, RA
Yerevan Yerevan, RA Tel./Fax: (+37410) 592323,
Tel./Fax: (+37410) 318888 Tel./Fax: (+37410) 561111, 547894
543485 513133 TELEX: -
TELEX: - TELEX: - E-mail:
E-mail: acba@acba.am E-mail: info@ameriabank.am araratbank@araratbank.am
Website: acba.am Website: ameriabank.am Website: araratbank.am
SWIFT: AGCAAM22 SWIFT: ARMIAM22 SWIFT: ARMCAM22
Ardshinbank Armbusinessbank Armeconombank
Director: Artak Ananyan Director: Artavazd Sargsyam Director: Aram Khachatryan

Address: 13 G. Lusavorchi str., Address: 48 Nalbandyan str. Address: 23/1 Amiryan str.,
Yerevan, RA Yerevan, RA Yerevan, RA
Tel./Fax: (+37412) 222222, Tel./Fax: (+37460) 372500, Tel./Fax: (+37410) 510910,
59 05 82 (+37410) 592020, 538904, +374 8000 8686
TELEX: 243-286 LALA AM TELEX: 243134 IBANK.AM TELEX: 243274 MOZG AM
E-mail: office@ashib.am E-mail: E-mail: bank@aeb.am
Website: www.ardshinbank.am info@armbusinessbank.am Website: aeb.am
SWIFT: ASHBAM22 Website: armbusinessbank.am SWIFT: ARECAM22
SWIFT: ARMNAM 22
ArmSwissBank Artsakh Bank Byblos Bank Armenia
Director: George Machanyan Director: Artak Balayan Acting Director: Hayk Stepanyan
Address: 10 Vazgen Sargsyan Address: 1b Charents str., Address: 18/3 Amiryan str.,
str., Yerevan, RA Yerevan, RA; 25 Knunyancneri, Yerevan, RA
Tel./Fax: (+37460) 757000, Stepanakert, NKR Tel./Fax: (+37410) 530362,
529591 Tel./Fax: (+37460)747769, 535296
TELEX: - +(37460)747739, TELEX: -
E-mail: info@armswissbank.am +(37447)943412, +(37447)971542 E-mail: infoarm@byblosbank.com
Website: аrmswissbank.am TELEX: (684) 243 385 BANK AM Website: byblosbankarmenia.am
SWIFT: ARSJAM22 E-mail: info@artsakhbank.am SWIFT: BYBAAM22
Website: artsakhbank.com
SWIFT: ARTSAM22
Converse Bank Evocabank HSBC Bank Armenia
Director: Artur Hakobyan Director: Emil Soghomonyan Director: Paul Edgar

Address: 26/1V. Sargisyan str., Address: 44/2 Hanrapetutian str., Address: 66 Teryan str.,
Yerevan, RA Yerevan, RA Yerevan, RA
Tel./Fax: (+37410) 511211, Tel./Fax: (+37410) 605555, Tel./Fax: (+37410) 655000,
511212 TELEX: - 655001
TELEX: 243139 PBCON RU, E-mail: hello@evocabank.am TELEX: 515000
111 780 HOR RU Website: evocabank.am E-mail: hsbc.armenia@hsbc.com
E-mail: post@conversebank.am SWIFT: PRMLAM22 Website: hsbc.am
Website: conversebank.am SWIFT: MIDLAM22
SWIFT: COVBAM22
34

Appendix 4
Bank Contact Details (continued)
ID Bank Inecobank Mellat Bank
Acting Director: Mher Acting Director: Tigran Davtyan Director: Seied Gholamreza
Abrahamyan Address: 17 Tumanyan str., Mousavi
Address: 13 Vardanants str., Yerevan, RA Address: 5a Tumanyan str.,
Yerevan, RA Tel./Fax: (+37410) 510510, Yerevan, RA
Tel./Fax: (+37410) 593333, 510573 Tel./Fax: (+37460) 388888
(+37460) 273333 TELEX: - (+37410) 540885
TELEX: E-mail: inecobank@inecobank.am TELEX: 581523
E-mail: info@idbank.am Website: inecobank.am E-mail: mellat@mellatbank.am
Website: Idbank.am SWIFT: INJSAM22 Website: mellatbank.am
SWIFT: ANIKAM22 SWIFT: BKMTAM22
Unibank VTB Bank Armenia
Director: Mesrop Hakobyan Director: Ivan Telegin

Address: 12/53 Charents str., Address: 35 Moskovyan str.,
Yerevan, RA Yerevan, RA
Tel./Fax: (+37410) 592259, Tel./Fax: (+3748000) 8787,
555140 (+37410) 565578
TELEX: 243313 UNI AM TELEX: -
E-mail: unibank@unibank.am E-mail: headoffice@vtb.am
Website: unibank.am Website: vtb.am
SWIFT: UNIJAM22 SWIFT: ARMJAM22
35

KPMG Experience in the Armenian Banking Sector
Audit Tax
Current clients Current clients
 ID Bank CJSC  VTB - Armenia Bank CJSC
 Ardshinbank CJSC  HSBC Bank Armenia
 Byblos Bank Armenia CJSC  Byblos Bank Armenia CJSC
 Mellat Bank CJSC
Advisory
Client name Service description
InecoBank CJSC IFRS 9 implementation assistance
ID Bank (Anelik Bank) CJSC IFRS 9 implementation assistance
Ardshinbank CJSC IFRS 9 implementation assistance
HSBC Bank Armenia Staff landing
ID Bank (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.
KPMG in Armenia performed Bank’s Top management

Undisclosed Bank
remuneration and bonus competitiveness survey
KPMG in Armenia performed Bank’s all staff remuneration and

Undisclosed Bank
bonus competitiveness survey
KPMG in Armenia assisted Converse Bank cjsc in developing a

Converse Bank CJSC
marketing plan for attracting corporate customers.
KPMG in Armenia assisted the Bank in the development and

Armimpexbank CJSC
implementation of “a one window” system.
KPMG in Armenia assisted the Bank in obtaining necessary

Byblos Bank Armenia CJSC information about the commercial and retail lending market of
Armenia.
KPMG in Armenia assisted the Bank in the development and

Ardshinbank CJSC
implementation of “a one window” system.
KPMG in Armenia assisted in the pre-investment due-diligence

International Undisclosed Bank
to International Bank in its acquisition of an Armenian bank.
36

Abbreviations
ADB Asian Development Bank
AMD Armenian Dram
BV Besloten Vennootschap, a type of Dutch Private lilited liability cmpany
CBA Central Bank of Armenia
CJSC Closed Joint Stock Company
EBRD European Bank for Reconstruction and Development
HHI Herfindahl-Hirschman Index
IFRS International Financial Reporting Standards
IRI Islamic Republic of Iran
LLC Limited Liability Company
NIM Net Interest Margin
NPE Net Provision Expenses
NPT Net Profit after Taxes
OCI Other Comprehensive Income
OFI Other Financial Institutions
OJSC Open Joint Stock Company
PM Profit Margin
RA Republic of Armenia
ROA Return on Assets
ROE Return on Equity
SME Small and Medium Entrepreneurship
S.A. Société Anonyme (French term for a public limited company)
S.A.L. Société anonyme libanaise (French term for a public limited company in Lebanon)
37

Glossary
Herfindahl-Hirschman Index Net interest margin
Calculated by squaring the market share of each firm Calculated as the net interest income generated
competing in the market and then summing the during the last 12 months ended by the reporting
resulting numbers. Index below 0.1 indicates an date divided by the average interest earning assets
unconcentrated index; index between 0.1 and 0.18 for the mentioned 12 months.
indicates moderate concentration; index above 0.18
indicates high concentration.
Profit margin
Calculated as the net profit generated during the
Equity to assets
reported period divided by the total income for the
Calculated as the total equity divided by the total same period.
assets.
Return on Assets
Liquidity
Calculated as the net profit generated during the last
Prudential ratio N12 (High liquid assets/Total assets) 12 months ended by the reporting date divided by the
calculated and reported by each bank as of the total average assets for the mentioned 12 months.
reporting date according to the corresponding
regulation of the CBA.
Return on Equity
Calculated as the net profit generated during the last
Capital adequacy
12 months ended by the reporting date divided by the
Prudential ratio N1 (Total capital/ risk weighted average total equity for the mentioned 12 months.
assets) calculated and reported by each bank as of
the reporting date according to the corresponding
regulation of the CBA.
38

Contacts
The contacts at KPMG in connection
with this report are:
Tigran Gasparyan
Managing Partner
KPMG in Armenia
Tel: +374 59 99 99
tgasparyan@kpmg.co.am
Zaruhi Furunjyan
Head of Advisory, Senior Manager
KPMG in Armenia
Tel: +374 59 99 99
zfurunjyan@kpmg.co.am
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
© 2019 KPMG Armenia LLC, 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 and logo are registered trademarks or trademarks of KPMG
International.

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Appendix 1: Shareholding Structure & General Information 23

Appendix 2: Sector Insights 25

Appendix 3: Key Financial Indicators 28

Appendix 4: Bank Contact Details 32

KPMG Experience in the Armenian Banking Sector 34

The financial information has been obtained from the published

The general information, such as the number of branches,

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

© 2019 KPMG Armenia LLC. All rights reserved.

© 2019 KPMG Armenia LLC. All rights reserved.

© 2019 KPMG Armenia LLC. All rights reserved.

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