Wednesday, June 22 2011 19:25
ARARATBANK intends to increase its credit portfolio to AMD 35-36 billion by late 2011
ArmInfo. By late 2011 ARARATBANK intends to increase its credit portfolio to AMD 35-36 billion, having ensured 42.3% growth versus 2010, Chairman of Board of ARARATBANK Ashot Osipyan said when replying to ArmInfo's question.
At the June 22 annual assembly of the bank's shareholders dedicated to the results of 2010, Osipyan said that in 2010 the bank increased its credit portfolio by 50.7% to AMD 25.3 billion as compared with 2009. Moreover, 60% of growth in provision of crediting was conditioned by growth in small and medium loans, 33% - in mortgage loans, and the rest - due to large loans. According to him, the emergency fund of the bank's provision of crediting has undergone no changes over the past few years. "This means that 99% of the loans provided by the bank are "standard" loans due to the methodology and conservative approach. On the whole, the year 2010 turned out to be successful for us, we carried out all the tasks and ensured over 45% growth for all indices", stressed Osipyan. He added that thanks to the credit portfolio growth, the assets of the bank rose by 44.8% to AMD 62.9 billion in 2010. The bank's liabilities annually grew by 48.3% to AMD 52687.9 million. Osipyan said that the time deposits of individuals in the bank rose by 145.7%, and the growth trend is also going on in 2011. On the whole, the volume attracted from the customers amounted to AMD 23.3 billion (54% annual growth) by late 2010.
The chairman of Board pointed out that in 2010 the total capital of the bank amounted to AMD 10260.5 million, having increased by 29.1% as compared with 2009. "The growth of this index in 2010 was ensured due to the increase in the authorized capital by over AMD 1 billion, as well as at the expense of the profit", he specified. He added that as of late 2010 the number of plastic cards issued by the bank totaled 52452, having exceeded the index of 2009 by 37.5%. In 2010 the bank increased the number of its customers by 41.4% to 93523 people.
For his part, Chairman of the Central Bank of Armenia Artur Javadyan pointed out that since the coming of the new shareholders in 2004 ARARATBANK has been demonstrating a trend of dynamic growth of its indices. "The bank holds its place in the banking system of the country and constantly improves the quantity and quality of its main indices", he said. According to the chief banker of Armenia, over the past three years ARARATBANK has been demonstrating 40% average annual growth in assets. In addition, 40% of the bank's assets are directed to crediting of the country's economy.
"It is noteworthy that ARARATBANK also ensures almost 100% of loan repayment, being one of the market leaders by this indicator, which is direct evidence of relevant mechanisms of risk regulation", stressed Javadyan. He said that thanks to the wide branch network covering 34 subdivisions, the bank's services are available in all regions of Armenia and in Nagorno-Karabakh. "I am sure that the adherence to the given policy will contribute to further achievements of the bank", he stressed. To note, the majority shareholders of ARARATBANK are Flash company, one of the largest oil traders of Armenia, with 74.1% share of participation, and the European Bank for Reconstruction and Development with 25%+1 share.
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