Armenian banks reinvested most of their profits into business
In 2025, Armenian banks reinvested more than 90% of their net profit into business. This was announced by Daniel Azatyan, Chairman of the Union of Banks of Armenia, during a press conference.
According to him, in 2025, the combined net profit of all Armenian banks amounted to 421 billion AMD, which is about 160 million USD more than the 2024 figure. On average, about 5% of that amount—20 billion AMD—was distributed to shareholders, while the banks reinvested the remaining funds into their capital. As a result, in 2025, banking capital grew by nearly 400 billion AMD, reaching 2 trillion 175 billion AMD.
Azatyan added that the banks’ capital is much higher than the minimum required level, which ensures financial stability. According to data at the end of 2025, the capital-to-risk-weighted assets ratio stood at 20.68%, while the minimum requirement is 11%.
He also noted that some borrowers often default on their loans, which creates risks for banks. For this reason, in 2024, the Central Bank increased the “countercyclical capital buffer” to reduce excessive risks during lending. This especially concerns mortgage and consumer loans.
