Friday, June 27 2014 18:51
Araratbank to provide 9.6% of its last year's net profit for dividends
ArmInfo. Araratbank will provide 9.6% of its last year's net profit or 297mln AMD for dividends to its shareholders, with one dividend to cost 4.65% of the cost of one share or 232.5 AMD, such a decision was made by the bank's shareholders during their meeting on Friday.
In 2013 the bank's EPS made up 2,413 AMD against 2,762 AMD in 2012. The capital was increased. As a result, the balance-sheet cost of one share in late 2013 made up 15,368 AMD against 12,883 AMD in 2012, with the nominal cost being 5,000 AMD. The P/E ratio made up 6.37.
During the meeting CEO of Araratbank Ashot Osipyan said that in 2013 the bank's net profit made up 3.083bln AMD or 7.5% less than in 2012. "The key reason we earned less was that we issued fewer loans because of low demand," Osipyan said.
He said that in 2013 the bank was planning to increase its lending by 20-22% but increased it by just 11.1% to 59.6bln AMD. "We could have attracted the necessary funds from international structures, but the demand for healthy loans last year was low," Osipyan said.
He said that last year the bank attracted 21.4% more funds from international financial intuitions than a year before (29bln AMD).
Osipyan said that last year the bank was conservative and avoided risky ventures. "As a whole the year was successful for us. We fulfilled all of our tasks and strengthened our positions in all segments of the banking sector," Osipyan said.
He said that last year the bank started providing leasing services and financing agriculture (200mln AMD). It also diversified its loans with preference given to SMEs, private business and retail. In 2013 the bank twice issued three-year AMD and USD corporate bonds.
Deputy CEO Nerses Yeritsyan said that Araratbank enjoys a special status in the banking sector and is one of its drivers. The bank was involved in different socially oriented programs. "Especially valuable was our experience in risk management. As a result, our credit recovery is high (1.98%) amid intensively growing lending," Yeritsyan said.
According to Osipyan, in 2013 the bank' capital grew by 19.3% to 19.6bln AMD, assets by 10.1% to 125.2bln AMD, retail lending by 8.4% to 2bln AMD, corporate lending by 13.2% to 33.6bln AMD, revenues by 8.8% to 10.8bln AMD, obligations by 8.6% to 105.6ln MD, deposits by 6.3% to 62.3bln AMD, wherein personal time deposits by 29.4% to 22.4bln AMD and personal call deposits by 59.7% to 8.4bln AMD. Corporate time deposits dropped by 33.7% to 2.3bln AMD, while corporate call deposits grew by 17.7% to 10.5ln AMD.
In 2013 the bank issued 117,636 cards or 14.2% more than in 2012. The clientele grew by 9.6% to 183,117 physical and legal entities. Last year the bank opened 5 branches and now has 47 branches.
Last year the bank increased its personnel and their wages, with 2bln AMD on employees (18.6% more than in 2012). Administrative expenses grew by 15.8% to 1.6bln AND. ROA made up 2.6%, ROE 17.2%.
The majority shareholders of Araratbank are Flash oil trader (President Barsegh Beglaryan) with 64.24%, EBRD with 25%+1, Rural Impulse Fund II (part of Incofin Investment Management from Belgium) with 10%.
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