Wednesday, February 8 2012 21:01
High activeness of INECOBANK in credit market has allowed it to obtain high profit and to direct it to capitalization
ArmInfo. Over 2011 INECOBANK increased its credit portfolio by 56.1% to 64 bln AMD ($165.8 mln, 26.4% quarterly growth). The main growth fell on corporate loans - by 79.2% to 43.3 bln AMD (25.1% quarterly growth) or 67.7% of the credit portfolio. The provision of loans to individuals grew by 33.4% to 20.1 bln AMD (26% quarterly growth) or 31.5% of the credit portfolio. Investments in government bonds increased by 53.1% to 2.9 bln AMD. The funds on nostro-accounts increased by 71.4% (almost 30% growth in Q4 2011) to 5.3 bln AMD.
INECOBANK was quite active in the international programs on lending to small and medium enterprises by replacing over 50% of the credit portfolio in this direction (62.5% y-o-y growth in absolute terms, and 12.5% growth in Q4 2011). By lending to the sphere of trade, the bank held the 5th position, having ensured 79% y-o-y- growth in absolute terms. By lending to the sphere of services, the bank occupied the 4th position (76% y-o-y growth). In 2011 the bank increased the lending to industrial sector five times, to the construction sector - by 58%, to the sphere of transport and communication - 6 times.
The most active participant in the market of consumer loans, as of 1 Jan 2012 INECOBANK demonstrated a portfolio of 17.4 bln AMD (44.7% y-o-y growth). Mortgage crediting increased almost by 20% (by 7% in Q4 2011) and held the 10th position. In the credit portfolio of the bank, the funds on the credit cards grew almost by 60%.
The high activeness of INECOBANK in the credit market has allowed it to obtain high profit and direct it to capitalization. The bank told ArmInfo that in Q4 2011 the shareholders of the bank decided to increase the nominal value of ordinary shares from 25 thsd AMD to 50 thsd AMD via capitalizing the undistributed profit. As a result, in Q4 2011 the authorized capital was increased by 3.5 bln AMD or by 78.2% to 7.9 bln AMD ($20.5 mln) at the expense of the profit, and this increased the total capital to 15 bln AMD ($38.9 mln). The stocks of the shareholders have not changed. The net profit of the bank made up 2.6 bln AMD ($6.7 mln), having exceeded the indicator of 2010 by 20%.
In 2011 the total liabilities of INECOBANK increased by over 60%, particularly, the portfolio of time deposits grew by 52.6%, call liabilities - by 33.4%, the portfolio of loans attracted from international structures - almost twice. In the structure of time deposits, the individuals' funds annually grew by 36.8%, and the legal entities' funds grew more than twice. In the structure of call liabilities, the legal entities' funds grew by 40.4%, and the individuals' funds - by 24%. In the portfolio of time deposits the individuals' funds made up over 70%, and in the portfolio of call liabilities almost 74% of the funds belong to legal entities.
To note, as of 1 Jan 2011 INECOBANK had 13 branches, 7 of them in Yerevan and 6 in the regions.
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