Armenian Banks Profit Exceeds 100 Billion Drams in 2024

The banks in Armenia have earned more than 100 billion drams in profit in 2024 compared to 2023. This was announced by the President of the Union of Banks of Armenia, Daniel Azatyan, during a press conference.

"In 2024, the banking system operated profitably and recorded a profit of 363 billion drams. If we compare this with 2023, the increase has been more than 100 billion or about 60 percent. We saw a growth of 250 billion drams in 2022," said the union president.

According to him, the profit of the past year was significantly influenced by the losses incurred in 2023, which amounted to 80 billion drams due to the forced displacement of citizens from Nagorno-Karabakh.

In response to a question about whether banks are generating excessive profits through high credit rates, Azatyan stated that high rates typically refer to loans with interest of 50-150 percent, and such rates do not exist in Armenia.

"If we're talking about mortgage or consumer loan interest rates, saying that they are high is not accurate in my opinion, because we can say that this is the price formed based on the demand and supply of money," he noted.

He also advised citizens to pay special attention to the terms of the formation of floating interest rates in banking contracts to avoid potential issues.