Monday, May 31 2010 19:24

ArmInfo. ARARATBANK is going to increase its credit portfolio to 25 bln AMD before the end of 2010, thereby ensuring
55.3% annual growth, Chairman of the ARARATBANK Board Ashot Osipyan said at the third annual meeting of the bank's shareholders.

According to him, though the year 2009 was marked with a crisis, the bank ensured growth in all its indices. In 2009 the bank's assets grew by 46,7% to 43.5 bln AMD as compared with 2008, and the growth rates still continue in 2010, as a result of which the assets have grown by 5 bln AMD. Osipyan said that the growth in assets in 2009 was mostly conditioned by increase in provision of crediting by 32,3% to 16.1 bln AMD. "It is important that in the credit portfolio the package of micro-credits grew by 128%, small loans increased by 57%, and mortgage credits – by 14%",- he stressed and added that alongside with the growth in credit portfolio, the bank has not changed the loan loss provisions.

At the same time, Osipyan pointed out that in 2009 the bank's liabilities grew to 35 bln AMD as against 22 bln AMD in 2008. "The growth trend continues, and according to the latest data, the liabilities have reached 39 bln AMD",- he said and added that the bank's liabilities are increasing mostly due to deposits of individuals, call deposits.

He added that in 2009 the bank increased its capital by 5,4% to 7.9 bln AMD as of 1 January 2010, and as of 24 May 2010 the capital amounts to 8.3 bln AMD. The growth was ensured at the expense of the bank's profit.

In 2009 ARARATBANK ensured 365.4 mln AMD net profit as against 580 mln AMD in 2008, and over Jan-May 2010the bank managed to ensure 475 mln AMD net profit. "I hope in 2010 we shall overfulfill the growth of pre-crisis indices of 2008",- said Osipyan. He pointed out that the Council of the bank has taken a decision not to pay the dividends of 2009 to its shareholders, as in crisis year much money was invested in opening of branches and personnel training.

He expressed hope that in 2011 the bank will pay the dividends to its shareholders. At the same time, he said that the decline in profit in 2009 resulted in reduction of profit per share, however, the balance value of a nominal share has grown to 7754 AMD against 4049 AMD.

Osipyan said that the bank has successfully completed the placement of recently issued shares, as a result of which the authorized capital of the bank grew to 1.020 bln AMD. At today's annual meeting the shareholders of the bank approved the amendments to the authorized capital. To recall, in mid May ARARATBANK and European Bank for Reconstruction and Development signed an agreement on increasing the bank capital via additional emission worth 1 bln AMD. All the shareholders of the bank took part in the emission in line with their participation share in the capital.

Thus, as a result of the emission, EBRD invested 255 mln AMD ($600 thsd) in the capital of ARARATBANK, having reserved 25%+1 share participation in the capital. The share of Flash company, the majority shareholder of the bank, is 74,1%, and the share of 82 minority shareholders is about 1%. Vakhtang Abrahamyan, member of Board of the Central Bank of Armenia, said that the CBA welcomes the fact that over 50% of ARARATBANK assets in 2009 were directed to the country's economy as loans. "Despite the serious displays of crisis, the credit recovery in the bank quite high, which demonstrates the competent risk management policy conducted by the ARARATBANK leadership, and by this index the banks holds one of the leading places in the financial system of the country",- said Abrahamyan.