VTB-ARMENIA BANK AIMS TO BECOME ONE OF LEADING BANKS OF ARMENIA

Noyan Tapan
April 29, 2008

YEREVAN, APRIL 29, NOYAN TAPAN. VTB-Armenia Bank, which aims to
become one of Armenia’s leading banks, has made considerable progress
in 2007. The director general of the bank Valery Ovsyannikov said at
the April 29 press conference that in 2007 the bank’s assets amounted
to 69.1 bln drams (about 222 mln USD), growing by 51% on 2006. The
credit portfolio made 40.2 bln drams, growing by 46% on 2006, the
same index made over 45 bln drams in the first quarter of 2008. The
overall capital of the bank made 20.7 bln drams last year, increasing
by 122% on 2006. The net income of VTB Armenia Bank amounted to 805
mln drams in 2007 and to 624 mln drams in the first quarter of 2008,
growing by 289.6% as compared with the fourth quarter of 2007. In the
words of V. Ovsyannikov, the bank’s shareholders do not envisage an
increase in its capital this year.

He said that in 2007 some changes were made in conditions of mortgage
credit provision. In particular, credits are provided at 12% interest
rate for 20 years. This year it is envisaged to provide mortgage
credits of the total amount of 21 mln USD. Henceforth credits will
be given to residents of marzes (provinces) as well.