The Union of RA Banks presents the analysis of the profitability of the banking systems of Armenia and Georgia, in which it is said:
"From now on, the Union of Banks of Armenia plans to regularly present analyzes of the indicators of the banking system of Armenia with comparative examples with comparable countries.
With this reference, we present the comparative analysis of the level of profitability of the banking systems of Armenia and Georgia.
It is accepted that profitability is measured by the ROE factor, the profit/capital ratio. According to the presented statistics, according to the data of the first 6 months of the current year, the annualized ROE of the RA banking system was 21.9%, in Georgia it was 23.5%.
It should be noted that the level of profitability (ROE) of the RA banking system has historically been low. Until 2022, during the 10 years (2012-2022), the average annual ROE of the RA banking system was 7%, which is significantly lower than comparable countries. In particular, for example, the ROE of the Georgian banking system for the same period was 17.5% per year on average.
For comparison, let's note that the indicator is even lower than the global average ROE of banks, which was around 9-10%. Comparative analysis of the ROE of the banking systems of Armenia and Georgia in the attached image. The relevant indicators of Georgia are presented in terms of drams. The presented statistical data are taken from the official websites of the banks of Armenia and Georgia."
