ARMECONOMBANK TO PAY DIVIDENDS TO ITS SHAREHOLDERS AT 10% PER SHARE

ArmInfo
2009-06-12 13:14:00

ArmInfo. Upon the results of 2008, "Armeconombank" OJSC will pay
dividends to its shareholders at 10% per share (250 drams), member and
secretary of Armeconombank Board Anahit Simonyan said today during the
annual Shareholders’ Meeting of the bank. Issue of dividends has become
possible due to the bank’s net profit at the rate of 517.7 mln drams.

According to her, despite the financial crisis and other obstacles
in 2008 the market prices of Armeconombank’s shares went on
growing. Transactions to 22 mln drams were carried out on the bank’s
shares at NASDAQ OMX Armenia in 2008, the average market value of one
share made up 13850 drams, having exceeded the par value 5.6 times
and increased by 24,3% as compared to 2007.

"It succeeded to maintain the activity at the Exchange also due to the
efficient dividend policy. The share of dividends upon the results of
2008 grew three times as compared to the previous years", A. Simonyan
said. Along with it, she said, Armeconombank is the only Armenian bank
the shares of which quote at the Exchange in "B" category. According
to A. Simonyan, payment of dividends will start from July 12, 2008.

Deputy Chairman of the Central Bank of Armenia Vache Gabrielyan highly
appreciated the bank’s activity and said it assured good indicators
and initiated payments of dividends to the shareholders in the current
conditions. He emphasized growth of the client base as an important
factor of the bank’s stable development and added that Armeconombank
appears an important and stable link in the banking system of Armenia.

According to ArmInfo data, 1422 persons were the bank’s shareholders
as of late 2008, 34,61% of which are legal entities and 65,39%
– individuals.

36,90% out of the total number of shareholders fell on non-residents,
and 63,10% – on residents. Businessmen Sukiasyans’ family members have
three block of stock in the total volume, 53.4%, and 25%+1 share are
controlled by the European Bank for Reconstruction and Development.

Armeconombank is a strategic private universal bank of Armenia with
developed client base and regional network. The bank is among the
top three leaders by the branch network: 34 branches, including
18 in Yerevan and 15 in regions, as well as 1 in the NKR. The key
dimensions of the bank is services of big corporate clients, support
to small and medium-sized enterprises, consumer lending, including
mortgage lending. The bank is effectively engaged in international
trade finance and bank guarantees and enjoys developed relations with
foreign financial institutions. As compared to 2007 Armeconombank’s
total capital for 2008 grew 12.2% to 8.6 billion dram, credit portfolio
– 10.1% to 26.5 billion drams. Since 2002 the bank has been paying
dividends to its shareholders every year.

AmRating/GlobalRating analyst Karine Melikyan says the credit rating
of the bank is BB+ Outlook Stable which is based on the good quality
and high level of assets diversification, strong market position,
the support by the institutional investor EBRD, and resistance to
political shocks. The liquidity level of the bank is high and the
liquidity risk is low.

From: Emil Lazarian | Ararat NewsPress