Moody's Affirms Ameriabank's Ratings with Stable Outlook

Strategic Insights -

Moody's Investors Service has announced the affirmation of Ameriabank CJSC's Ba3 long-term local and foreign currency bank deposit ratings, concurrently maintaining the stable outlook on these ratings. The bank's ba3 Baseline Credit Assessment (BCA) and Adjusted BCA, Not Prime (NP) short-term local and foreign currency bank deposit ratings were also affirmed. The affirmation of Ameriabank's BCA and Adjusted BCA at ba3 reflects the bank's robust asset quality and capital buffer, and its strong loss absorption capacity in general.

Key Takeaways:

  • Ameriabank's net profit in 2024 reached AMD60.0 billion, with a strong return on tangible assets of 3.2% compared to 3.3% in 2023.
  • The bank's high-interest rate environment and favorable economic conditions led to a widened net interest margin (NIM) of 6.1% in 2024.
  • Problem loans decreased to 1.5% of gross loans as of Q1 2025 from 3.2% as of year-end 2021 amid rapid economic growth.
  • Ameriabank's capital buffer strengthened over recent years, with a Tangible Common Equity (TCE) to Risk Weighted Assets (RWA) ratio of 14.3% as of Q1 2025.
  • The bank relies on market funding, increasing to 22% of tangible banking assets as of Q1 2025 from 16% at the end of 2023.
  • Ameriabank maintains a healthy liquidity cushion with liquid assets exceeding 26% of total assets as of Q1 2025.

Statistics:

  • 2024 net profit: AMD60.0 billion
  • Return on tangible assets (2023): 3.2%
  • Net interest margin (NIM) 2024: 6.1%
  • Problem loans (Q1 2025): 1.5% of gross loans
  • TCE/RWA ratio (Q1 2025): 14.3%
  • Market funding reliance (Q1 2025): 22% of tangible banking assets
  • Liquid assets (Q1 2025): 26% of total assets

Sources:

  • Moody's Investors Service, "RATINGS RATIONALE"
  • [Unavailable source link]