The banks in Armenia have reinvested more than 90 percent of their profits in business in 2025. Daniel Azatyan, Chairman of the Union of Banks of Armenia, told this to a press conference Tuesday.

In 2025, the net profit of all banks in Armenia combined amounted to 421 billion drams, which is about $160 million more than in 2024. Of this, however, only 20 billion drams—that is, about 5 percent—were distributed as dividends to shareholders. They reinvested the rest in their capital, which increased by almost 400 billion drams in 2025, reaching 2 trillion 175 billion drams.

The capital ratios of the banks in Armenia are significantly higher than the minimum allowable level. At the end of 2025, the marginal ratio between capital and risk-weighted assets in the Armenian banking system was 20.68 percent, with a minimum of 11 percent.

In 2024, the Central Bank of Armenia increased the countercyclical capital buffer from 1.5 percent to 1.75 percent to curb excessive bank risk when lending—and taking into account the boom in mortgage and consumer loans, which are growing in double digits.