Armenia’s banking sector recorded substantial growth in assets, loans, deposits and capital in 2025, with consumer loans making up the largest share of the credit portfolio.

According to Daniel Azatyan, Chairman of the Union of Banks of Armenia, the total loan portfolio of Armenian banks amounted to approximately 7.9 trillion drams in 2025. The largest portion — 23.2 percent, or 1 trillion 907 billion 520 million drams — consisted of consumer loans.

The second-largest segment was mortgage lending, accounting for 21.3 percent or 1 trillion 665 billion 545 million drams, Armenpress reported.

Construction loans totaled 859 billion 952 million drams, loans to the services and other sectors amounted to 836 billion 816 million drams, trade lending reached 732 billion 649 million drams, industrial loans stood at 728 billion 301 million drams, and agricultural lending amounted to 404 billion 505 million drams. All other sectors combined accounted for 9.9 percent of the total portfolio.

Compared with 2024, the highest growth rate was recorded in construction lending, which increased by 30.2 percent. Consumer loans rose by 29.6 percent, loans to services and other sectors by 28.4 percent, industrial lending by 25.2 percent, agricultural lending by 17.6 percent, trade lending by 16.1 percent, and mortgage lending by 13.2 percent.

Loans extended to individuals declined by 2 percent year-on-year, making up 44 percent of the total, while lending to legal entities increased by 25 percent, reaching 56 percent.

Azatyan also reported that total assets of the banking system reached 12 trillion 830 billion drams by the end of 2025, increasing by nearly 1.8 trillion drams or 16.6 percent. Loan investments grew by almost 1.5 trillion drams or 23 percent, reaching 7.9 trillion drams.

Banks’ total capital increased by around 400 billion drams or 22.4 percent to approximately 2 trillion 175 billion drams. In 2025, deposits rose by about 1 trillion drams or 15.5 percent, reaching 7.5 trillion drams, while total liabilities increased by 1.4 trillion drams.

Azatyan noted that over the past two to three years, the growth rates of the banking system’s key indicators have accelerated significantly.