ARARATBANK SHAREHOLDERS DEFINE 5 KEY DIRECTIONS OF BUSINESS DEVELOPMENT
ArmInfo
2008-06-27 16:38:00
The General Assembly of Shareholders of the dynamically developing
ARARATBANK defined the key 5 directions of business development
Friday. The bank has recently received a status of public bank.
ARARATBANK Board Chairman and Executive Officer Ashot Osipyan said
the bank’s strategy implies establishment of a large retail bank with
a broad network of regional branches. Launching business in 2005,
the Bank has 21 branches at present. The Bank intends to increase
their number to 30 till the end of the year and to 50 within three
years. ARARATBANK leadership studies the development of banking
business from the point of view of maximal extension of finance product
line on the example of ‘financial supermarket’. As regards financial
growth based on developing the resource base, the bank stakes on IPO
both in the local and foreign markets. Relevant consultations are
underway with potential investors and stock exchanges.
Five percent of the bank’s shares must be freely circulated in
the market in accordance with the conception. It is important also
for establishing a market price for quoted shares. The third prior
direction of ARARATBANK is future increase of raised funds. Only
over the last year, the deposit base was up 2.4 times and totaled
6.3 billion drams or about 30% of liabilities as of April 1. The
bank will continue this direction simultaneously increasing resources
through further arrangement of bounded loans and attraction of foreign
credits. Another important direction of development is improvement
of technologies, introduction of up-to-date credit technologies
and scoring systems in the spheres of small and micro crediting,
Osipyan said. The bank attaches great importance to the work with
clients. It introduces customer relationship management system (CRM )
and opened a 24-hour Call-Center. The bank plans to send its staff for
training to the leading European banks. The shareholders also made a
decision to amend the bank’s statute. In particular, the bank statute
will provide the insurance companies cooperating with it a right to
come out as insurance agents. By another decision, the shareholders
have a right to sell about 20% of their shares without coordinating
it with the regulator, which will make the bank’s property structure
more mobile. The Council of the Bank was determined. It comprises 5
people including one delegate of minority shareholders.
The key majority shareholder of the bank is the largest oil-trader
in Armenia Flash Company – 98.8% stake. By the strategy of the bank,
Flash Company will gradually reduce its stake in the bank through IPO.
As of April 1 2008 the total capital of ARARATBANK was $16.6
million. Assets totaled $85.3 million, total provision of crediting –
$35.8 million. The bank is actively involved in the market of state
bonds, in particular, the investing in state securities totaled $27.9
million or 2.4% of total assets as of April 1. The bank ensured almost
trice annual growth of the indicator.
On 18 June 2007 the bank was given a status of Government agent for
management of state internal debt. Net profit of the bank for the
first quarter of 2008 made up 222.8 million drams.
From: Emil Lazarian | Ararat NewsPress
