Thursday, September 29 2011 18:10
New European bank enters Armenian market
ArmInfo. One of the largest banks of Latvia - Rietumu Banka - is entering the banking market of Armenia, a reliable source in the banking circles told ArmInfo correspondent.
To note, established in 1992, Rietumu Banka is a prominent Baltic bank that provides extensive banking services to corporate clients. The Bank is well represented in the global market, providing services to customers all over Europe, the Baltic States, Russia, Ukraine, Belarus, and other regions. It is one of the first private banks in Latvia. The bank has over 15 years of operation in the Baltic States, Russia, Ukraine, Belarus, and numerous European markets. Rietumu Banka has representative offices in France, Russia, Romania, Ukraine, Belarus and Kazakhstan. It provides financial leasing services in Russia, Ukraine, and Belarus. The bank is distinguished by a wide range of savings and capital growth programs, contemporary banking technologies, its reliability and privacy, highly professional team. The services of Rietumu Banka are provided in English, Latvian, Russian and French. Rietumu offered a support programme designed to navigate and help its customers willing to get a residence permit in Latvia. The residence permit guarantees free movement within the Schengen area, currently consisting of 25 European countries. On 13 September, 2010, the first customer of Rietumu officially obtained the European residence permit. After conducting a study of "new Europe" region banks' operations, a reputable business magazine Business New Europe named Rietumu as the best bank in Latvia in 2009.
According to Rietumu Banka's financial report, that company earned over 1/3 of the Latvian banks' profit in 2010. The net profit of Rietumu Banka totaled 4.6mln EUR, the profit of the whole group - 6.8mln lat (9.7mln EUR). As of Jan 1 2011 the bank's assets totaled 1.6bln EUR, the loans - 763mln EUR, the deposits - 1.4bln EUR, the capital and reserves - 196mln EUR. The capital adequacy was 17.8%.
There is only one company with Latvian capital in Armenia's inancial-banking system - Norvik credit company, subsidiary of the Latvian- Icelandic Norvik Bank. Initially Norvik planned to become a bank but because of the crisis it remained a credit company.
There are 21 commercial banks in Armenia, their total capital being $613.9mln or 226.4bln AMD (July 1 2011).
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