ArmInfo. The funds accumulated in the banking system since 2022 primarily came from non-residents, and the majority of them are still in Armenia. Martyn Galstyan, Governor of the Central Bank of Armenia, stated this in an interview with the research resource Hetq (Sled).
"So, if we consider this as an indicator of quality, we must understand that there are countries that offer similar services, and non-residents could have chosen other countries, but they chose the Armenian banking system, and there is a certain quality component to this. However, quality and risk management must be balanced." "In particular, banks have made significant investments in compliance, hiring large teams to help them ensure this large influx doesn't become a problem with associated violations that prevent them from fulfilling their obligations," he noted.
Overall, the head of the Central Bank noted that there is always a need to work to ensure higher quality, both in terms of product development and new savings opportunities for citizens. "However, I would like to note that there is currently a developing market for investment companies. And I think that over time, we will try to create an environment where these two groups of players—banks and investment companies—compete with each other, which, in our view, will lead to the emergence of qualitatively new products," the head of the Central Bank added.
When asked if he was satisfied with the pace of development, Galstyan noted that Armenia's banking system is overcapitalized and highly liquid. "But when it comes to providing high-quality products and increasing recognition, much work remains to be done." "However, there are already banks announcing their intention to hold IPOs in London, which in itself is already quite good news," he concluded.
As a reminder, in 2022, the huge influx of relocators (primarily from Russia) to Armenia, along with their capital and businesses, along with the accompanying opening of accounts, acquisition of bank cards, and money transfers, allowed Armenian banks to generate excess profits, which in 2022 alone jumped threefold (to almost $700 million). Moreover, this growth came from non-interest income. In particular, income from currency purchases and sales (6.3 times), money transfers (2.1 times), and card transactions (41.2%) increased significantly. In terms of the latter, banks were able to generate excess profits thanks to high tariffs established for non-residents, which were 5-10 times higher than those applied to residents. Banks maintained the same tariff policy for money transfers with non-residents. Banks also earned significant sums from currency purchases and sales thanks to relocators, whose actions created high volatility in the Armenian currency market, accompanied by a sharp strengthening of the dram. While this allowed banks to generate excess profits, it also negatively impacted economic actors and led to a surge in real estate prices (especially rental prices), which in turn rapidly reduced the growth rate of mortgages, which had long been the driver of loan portfolio growth.
According to the Financial Rating of Armenian Banks as of December 31, 2025, prepared by ArmInfo Investment Company, the net profit of the banking system for the reporting year exceeded $1.1 billion. It is noteworthy that this indicator had already returned to its natural growth rate the year before, driven by interest income, i.e., thanks to the resumption of active lending. According to the results of the Jan-sept of 2026, the net profit of the banking system amounted to $922 million with a loan portfolio of almost $25 billion (with an annual growth of 24%).
