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Investor Presentaiton

32 Investment guide Armenia Banking Sector The banking system remains the biggest part of the Armenian financial market. As of 30 June 2016, there were 20 commercial banks operating in the Republic of Armenia. They had 526 branches in Armenia and in 550,000 T 500,000 Nagorno Karabakh, from which 232 were located in Yerevan. The total number of employees in the Armenian commercial banks was about 11,516. Total assets of the Armenian banking system were about AMD 3,496 billion as at 30 June 2015 including total loan portfolio of AMD 2,194 billion. This figure makes the Armenian banking system the biggest part of the Armenian financial market. The total equity amounted to AMD 587 billion and total liabilities were about AMD 2,908 billion including AMD 1,914 billion of total deposits. Top Ten Banks of the Armenian Banking Sector as of 30 June 2016 (in million AMD) 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0- HILLL Ameria ASHIB VTB ABB HSBC ACBA Ineco Assets Loans Deposits Converse Unibank - 14,000 12,000 10,000 +8,000 - 6,000 - 4,000 - 2,000 -0 Ararat Total Income (right axis) Equity Total Income (right axis) Source: Published interim financial reports of commercial banks for 2nd quarter (unaudited) The shareholder 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. Non-resident participants, both legal entities and individuals, KPMG are mainly from Russia, Switzerland, Iran, Lebanon, Liechtenstein, France, United Kingdom, USA and Kazakhstan. There are several international organizations that have shares in several Armenian banks (e.g. IFC, DEG, EBRD, and OPEC fund for International development). Net Profit (right axis) Due to the above changes there has been several developments in the sector. For more details on banking sector you can refer to "Armenian Banking Sector Overview" (www.kpmg.am). ©2016 KPMG Armenia cjsc,. All rights reserved.
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