SHAREHOLDERS OF ARARATBANK DIRECT 581 MLN DRAMS PROFIT GOT IN 2008 TO CAPITALIZATION
ArmInfo
2009-06-05 18:33:00
Arminfo. The shareholders of ARARATBANK direct 581 mln drams of net
profit got in 2008 to capitalization, ensuring growth of the total
capital up to 7.5 bln drams in this way. When making a speech at
the annual meeting of the shareholders Chairman of the ARARATBank
Board Ashot Osipyan said that in 2008 total assets grew by 19,3%
having amounted to 29,6 bln drams. The credit portfolio of the bank
grew by 32,9% up to 12.2 bln drams; net profit grew by 74,4 bln and
total capital by 69%.
Acting as a quickly growing universal bank ARARATBank is drawing much
attention to improvement of the crediting technologies for financing
of small and medium-sized business within the frames of the European
Bank programme on development of the micro-financial services. It has
also fulfilled a programme on development of technologies to finance
medium-sized business. The bank is actively developing the branch net
and is increasing irs client base. The bank has entered the market
of loan obligations, having successfully placed its obligations and
held DPO. In November 2008 thanks to the new additional emission EBRD
became shareholder of the bank with a share 25% plus one share. As
representative of EBRD Aleksandr Babayan said in his speech,
EBRD entered the capital of ARARATBank taking into consideration
its active development, intensive growth of indices and high quality
team of managers. He also added that EBRD is going to continue showing
financial and technical aid to the bank to improve its risk-management,
system of corporative management, structural reforms, to draw out
new banking products and develop marketing technologies. ‘The EBRD
is watching ARARTBANK as a reliable partner’, – he said and added he
hopes the growing tendency of the bank will continue irrespective of
the cris is.
As the head of the Council of the bank, leader of ‘Flash’ company
Barseg Beglaryan told ArmInfo correspondent, ‘taking into consideration
the fact that the bank has a status of OJSC, we are going to become
more public bank’, and added the leadership of the bank is going to
discuss the problem of holding new emission of shares.
Meanwhile, as Ashot Osipyan told ArmInfo, taking into account the fact
that the world financial crisis is deepening its affect on Armenia,
the bank does not expect to get the predicted level of profit over the
current year, but nevertheless it will continue intensively developing
the banking technologies for the future jerk.
By the amount of assets, ARARATBANK is an average bank dynamically
developing in Armenia, 74,1% of its package of shares is owned by
Flesh company, one of the largest oil traders of the country, and
25%+1 share belongs to EBRD. The bank was re-registered from CJSC
into OJSC in August 2007 and became the third bank with public
status in the country. The key directions of the activity are:
serving corporate clients, financing small and medium business,
actively developing the retail business. Since May 2007 the bank has
carried out two issues of its own corporate bonds and it intends to
hold a new issue of securities. The bank is successfully developing
relations with international financial organizations. The national
rating agency AmRating/Global Rating provided the bank with ‘BB-‘
rating with "possible rising" outlook. Karina Melikyan, an analyst at
the agency, thinks that the bank’s rating is grounded by stable rates
and positive dynamics of development, maximal transparency, strong
support by the main shareholders, including EBRD, which participates
in the capital and thereby decreases the risk of dependence on one
shareholder. According to her, over the last half a year the bank
increased its share in the market by 2-3%, having ensured one of the
highest growth rates among the Armenian banks having similar level
of development.