Thursday, July 25 2013 15:01
Ardshininvestbank keeps on demonstrating sustainable growth in main financial indicators despite growing competition in Armenian banking services market
ArmInfo. ARDSHININVESTBANK announced its financial results for the first semester of 2013 on July 15, 2013. In spite of growing competition in Armenian banking services market, the Bank's main financial indicators continue the sustainable growth, the press service of the Bank reports.
Here is the comparative dynamics of main financial indicators compared to the first 6 months of 2012 according to the latest statement of comprehensive income: cost to income ratio (CIR) improved by 4.4% reaching 47.4%; net income was 53.3% higher than net income during the first 6 months of 2012 reaching AMD 2.1 billion; net interest income was 41.6% higher, reaching AMD 6.2 billion; net commission income was 14.2% higher, reaching AMD 1.8 billion; net operating income was 33.3% higher, reaching AMD 9.0 billion. As a result, ASHIB managed to keep and strengthen its leading positions in the Armenian banking system.
As mentioned before, Bank generated AMD 2.1 billion in net income during for the first semester of 2013, more than1.5 times the similar indicator for the previous year, which is one of the highest growth rates in Bank's history. Among the main factors behind net income growth were: the expansion of the loan portfolio, higher efficiency of risk management systems and bank operations. In addition to solid financial performance, ASHIB continued its efforts towards strengthening its risk management and upgrading its operational systems. Like before the Bank has the second largest branch network in the country. Net interest income for the first 6 months of the year totaled to AMD 6.2 billion, which is 41.6% higher than first semester of the last year. This positive dynamics in Bank's business efficiency was a result of Bank's continuously improving business model. The Bank earned AMD 1.8 billion in net commission income during the reporting period, 14.2% higher than the same period last year. By net commissions earned ASHIB is the absolute leader among its peer banks.
Net operating income of the Bank for the reporting period exceeded the same period of 2012 by 33.3%, amounting AMD 9 billion. In any national banking system such an incredible growth could be achieved by better targeting asset allocation structure and reaching those targets by increasing the share of high-yield assets (directing excess liquidity towards consumer loans).
By July 1, 2013 Bank cost to income ratio (CIR), one of the main indicators of bank profitability/efficiency, stood at 47.4%, which is 10.1% more favourable compared to 57.5% throughout the banking system, which means that cost management efficiency is of high priority for the management and is properly monitored.
Bank total assets as of July 1, 2013 totaled to AMD 233.3 billion, which is equivalent to 17.6% growth from the end of 2012. Along with the growth, the management focused on asset allocation efficiency.
As of July 1, 2013 customer loan portfolio amounted to AMD 152.1 billion reflecting 13% growth from the end of 2012.
Development of the Bank retail business contributed to the sustainable growth of the loan portfolio. Loans to retail customers grew 12% reaching around AMD 52 billion or 34 percent of the overall portfolio.
Corporate loans totaled AMD 100.5 billion or 66% of the loan portfolio. This corresponds to around 14% growth during the first 6 months of 2013.
It's worth mentioning that along with the growing loan portfolio ASHIB manages to maintain high asset quality, with 2.4% ratio of over 90 days non-performing loans (NPL) to total loan portfolio by the end of the first semester.
Bank equity, the main indicator of its stability, grew 7.7% growth during the first 6 months of 2013 to AMD 38.6 billion.
ASHIB's return on average equity (ROAE) and return on average assets (ROAA) ratios stood at 11.2% and 1.9% respectively.
One of the main development factors for the Bank remains further enhancement of relationships with international financial organizations. Particularly, in the first semester of 2013 the Bank was able to attract around USD 11 million of additional funding (USD 5 million from World Business Capital and USD 6 million from Asian Development Bank) to be directed to SME financing.
Commenting on ASHIB's reporting period results, the head of Bank Management Board Mr. Mher Grigoryan mentioned: "I believe the sustainable growth will continue further, thanks to the client oriented policy of the Bank. Constant growth of our client base indicates that we are on a right track".
As of July 1, 2013 ASHIB's client base comprised of 9,671 legal entities and 221,866 individuals, in aggregate 20% higher than 6 months before. On the same date Bank's sales network comprised of 324 service points, including, ATMs and POS-terminals.
Expert: Electricity tariff containment in Armenia is only temporary
Political Scientist: Armenia`s withdrawal from Eurasian Economic Union (EAEU) to result in its dependence on Azerbaijani and Turkish markets
Artur Avetisyan: All discussions regarding the choice of a future NPP model will remain mere talk until there is a vision for strategic development
ATI.SU: Demand for international cargo transportation 30% up in Armenia
Civil Contract nominates Armen Ktoyan for Central Bank Board Member position
Armenia, France considering prospects for expanding technological cooperation 
Over 99.9% of wheat imported to Armenia comes from Russia