AMERIABANK AND CASCADE BANK MAKE MERGER DEAL

ArmInfo
31.03.2010

ArmInfo. TDA Holdings and Cascade Capital Holdings, shareholders of
Ameriabank and Cascade Bank, have reached agreement to merge the two
banks. Chairman of the Directorate – Director General of Ameriabank
Artak Hanesyan and Executive Director of Cascade Bank Aharon Levonyan
said in a press conference on Wednesday that this merger is a
ground-breaking deal in the history of the Armenian financial market.

The merged bank will operate in the market under brand Ameriabank. The
shares of the parties in the capital of the merged bank will be made
public later at a press conference by the Ameriabank shareholders.

Artak Hanesyan said that the banks will be merged in two stages; in
particular, the preparation stage is currently underway. The strategic
plan of Ameriabank’s development will undergo quite insignificant
changes after the merger since the strategy and philosophy of the
merged banks are very similar.

It is the 1st market based bank merger that is aimed at consolidation
and empowerment of the RA financial sector, he said. It will create one
of the strongest financial institutions in Armenia with consolidated
capital of USD 75 million, assets of USD 400 million, liabilities of
USD 262 million, loan portfolio of USD 180 million assuring the bank
among top three positions in the domestic market.

The Bank will be further enhanced by the joint team of professionals
that will contribute to the further growth and leadership of the united
Bank in the Armenian financial sector. The merger will increase the
capital of the merged bank that will allow increasing the size of
loans per borrower and the loans to corporate clients.

"This merger is aimed at empowering the two financial structure through
establishment of a very strong financial institution that will be much
more competitive than the two banks were before," A. Levonyan said.

Whereas profits, Ameriabank ensured 1,5 billion drams ($4 million)
net profits for 2009, assuring the index envisaged by the strategic
development plan, Hanesyan said. For his part, A. Levonyan said that
Cascade Bank exceeded 25% the level of actual profits of $1.1 million.

Thanks to this, the bank took the 5th position in the market by ROA.

Earlier in July Cascade Credit UCO and Cascade Bank were merged. Both
the structures are part of Cascade Capital Holding, belonging to the
Cafesjian Family (USA). TDA Holding Limited, the affiliated company
of Troika Dialog, holds 99.99% stake in Ameriabank.

Analysis and Ranking of Armenian Banking System by the Agency of Rating
Marketing Information (ArmInfo) says that merger of Ameriabank and
Cascade (exclusive of the joint development plans) gives Ameriabank
an opportunity to maintain the 1st position by the statutory capital,
to rise to the 2nd position from the 4th position by total capital,
from the 6th position to the 3rd one by assets and liabilities, from
the 7th to the 3rd position by lending and from the 2nd to the 1st
position by lending to the economy sector, as well as to maintain its
2nd position by time deposits. These possible rising of Ameribank’s
positions in the market are based on data of the ranking of commercial
banks for 2009.

From: Emil Lazarian | Ararat NewsPress