Wednesday, March 31 2010 17:55
Ameriabank and Cascade Bank make merger deal
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.
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