Unibank Posts AMD 9.8 Billion Net Profit as Loan Book Surges 32.5%
YEREVAN, Armenia - Unibank OJSC delivered AMD 9.8 billion in net profit for 2025, as the bank's total assets reached AMD 393.8 billion and its loan portfolio expanded 32.5% year-on-year to AMD 264.6 billion, positioning the institution as a primary driver of credit growth in an economy the IMF forecasts will expand 5.3% in 2026.
The results were presented ahead of the Annual General Meeting of Shareholders scheduled for June 22, 2026, at which shareholders will review the 2025 performance and decide on the payment of annual dividends.
Loan growth was broad-based and accelerating across every major category. The retail loan portfolio grew 24% over the year, exceeding AMD 183 billion, while mortgage lending recorded nearly 40% growth, reflecting sustained demand in the housing finance segment. The corporate loan portfolio grew by 37% to AMD 77 billion. Within the bank's small and medium-sized enterprise financing program, the leasing portfolio expanded by 55%, making it one of the fastest-growing verticals in the bank's book.
Card penetration deepened alongside lending, with active payment cards rising approximately 21% year-on-year - a signal of continued migration toward electronic payments in a market where retail financial services remain a structural growth driver.
On the funding side, Unibank's total liabilities stood at AMD 343.6 billion at year-end. The portfolio of issued bonds increased by 70% over the year, indicating that the bank is actively diversifying its liability mix beyond conventional deposit funding. Specific terms and investor composition of those issuances remain unconfirmed.
The immediate exposure for investors lies in the credit cycle dynamics underlying that growth trajectory. Unibank's loan portfolio grew at 32.5% - well above Armenia's World Bank-recorded real GDP growth of 5.9% in 2024, and materially above the IMF's 5.3% forecast for 2026. Credit expanding at a multiple of output growth is a familiar precursor to asset quality pressure when conditions soften. With Armenia's current account deficit running at 4.6% of GDP in 2024, the economy remains sensitive to shifts in external financing, compressing the buffer available if domestic credit underperforms.
Mortgage lending at nearly 40% growth warrants particular attention. Housing finance portfolios carry long duration exposure, and a repricing of residential assets - or a rise in unemployment above Armenia's 2025 level of 12.9% - would place visible pressure on asset quality metrics not yet disclosed in the summary results.
The 70% surge in the bond issuance portfolio introduces a parallel risk dimension. If the bank is extending duration on the funding side while growing a long-dated mortgage book, institutional investors in Armenian fixed income should assess the duration mismatch carefully as regional interest rate conditions evolve.
For corporate borrowers and equity investors alike, the 37% growth in the corporate loan portfolio combined with a 55% leasing expansion signals that capital formation financing is actively deployed across the SME sector - a constructive indicator for an economy where the World Bank recorded 5.9% growth in 2024.
The Annual General Meeting's dividend decision will provide a further signal on management's capital adequacy confidence: the payout ratio against AMD 9.8 billion in net profit will indicate whether the bank is prioritizing distribution or balance sheet retention as the growth cycle continues into 2026
