ARMECONOMBANK’S NET PROFIT INCREASES 20% IN 2007 AND TOTALS 1.893MLN AMD

ARKA
June 9, 2008

YEREVAN, June 9. /ARKA/. Net profit of Armenian Armeconombank in 2007
increased by 20% to total 1.893mln AMD against 1.571bln drams in 2006,
Board Chairman of Armeconombank David Sukiasyan stated at the annual
meeting of the bank’s shareholders.

Sukiasyan said 300mln drams of the profit will be paid to the
shareholders at 12% annual rate per share.

The assets of Armeconombank totalled 50.419bln AMD at the end of 2007
against 42,818bln drams estimated at the beginning of the year.

The credit portfolio grew by 38% to 27.967bln AMD from 20.189bln
drams recorded at the beginning of the year.

The securities showing increased by approximately 40% – from 6.5bln
AMD of 2006 to 8.9bln AMD in 2007. Liabilities increased 25% and
reached 41.925bln AMD against 35.937bln AMD in 2006.

The total capital increased by approximately 20% – 8.494bln AMD against
6.888bln AMD in 2006. The number of the bank’s customers grew by 45%
to reach 62,788.

In 2007, Moody’s Investors Service conferred on the bank D rank (for
financial stability) and Ba3 rank (for long-term deposits in national
and foreign currencies).

The bank signed a $2mln-worth loan agreement with the International
Financial Corporation to extend mortgage loans, as well as small and
medium-sized business loans. Under another agreement with KfW, the
bank received 103.5mln drams to extend mortgage loans. Under another
loan agreement signed with EBRD (European Bank for Reconstruction
and Development) in 2007, the bank received $3mlm to provide loans
to micro and small businesses.

Among the bank’s special achievements in 2007, Sukiasyan also singled
out the agreement, under which the bank received a $15mln-worth
syndicated credit from seven international banks to extend loans to
small and medium-sized businesses.

The Armeconombank open joint-stock company was registered on August
26, 1991.

Over 75% of the bank’s shares belong to the main shareholders – EBRD
(25% + 1 share) and the Sukiasyan family – the founder of the SIL
concern (50.6%).

The capital of Armeconombank, according to the January 1, 2008 data,
totalled 8.6bln drams, with the assets estimated at 50.4bln AMD and the
net profit of 2007 estimated at 1.8bln AMD. The bank has 45 branches
in the territory of Armenia.