Wednesday, March 4 2015 20:28
Artsakhbank Replenishes Authorized Capital by 4,5 Billion AMD Attracting a New Stockholder in the Name of "Armenia Business Fund"
ArmInfo. Artsakhbank replenished the bank's authorized capital by 4,5 billion AMD by attracting a new stockholder in the name of "Armenia Business Fund" OJSC. As the banks press-office reported to ArmInfo, as a result, the authorized capital reached 11061.150 million AMD. Before that as of January 1 2015 the authorized capital of Artsakhbank was 6.561 billion AMD (without an annual change), total capital - 11.233 billion AMD (annual growth by 1.6%). Artsakhbank closed the year in a loss of 1.697 billion AMD, while in 2013 there was a profit of 1.009 billion AMD (annual downswing almost by 4). It is to note that the bank need to replenish its capital at least by 14 billion AMD subject to being in the black in order to conform with standards - reach 30 billion AMD by 2017.
To note, nothing is known about the new majority stockholder - "Armenia Business Fund" - there is nothing about the company even on the Internet. According to experts, the fund might have probably been established purposely to acquire a share in the bank's capital.
According to the source, the funds will be allocated at the implementation of programmes of prospective development, particularly the improvement of customer service, broadening of the spectrum of bank services concerning plastic cards, as well as extension of diversification of crediting for the account of micro finance projects.
Changes have been made in the senior management of "Artshakhbank". On February 4 2015 Arthur Mkhitaryan was appointed the new Chairman of Board of the bank. He replaced Kamo Nersisyan who had been held the position since the establishment of the bank. Before Arthur Mkhitaryan used to be the bank's member of council. Mkhitaryan has been working in the financial-banking sphere since 1995 and has held leading positions in various Armenian banks.
These decisions have been made during the special meeting of the stockholders of Artsakhbank. The meeting was convened in February 2015.
Hrach Kaprielyan (USA) is the Head of Artsakhbank Council, his deputy is Ashot Gomtsyan (RA), members of the council are - Vardan Sirmakes (Switzerland), Arden Selefian (Switzerland), Levon Ghazaryan (RA) and Artur Chorukhyan (RA). Paruyr Grigoryan (paymaster), Ruzan Khachatryan (accountant-general), Kevork Tekazaryan (Turkey) and Vahrm Baghdasaryan (RA) are the members of the banks composition of management.
To note, as of January 1 2015 the majority stockholders of Artsakhbank were the owner of watch brand "Franck Muller" (Switzerland), Vardan Simakes with a share of 43,13%, Hrach Kaprielyan (USA) - 39,08%, as well as Kamo Nersisyan - 11,4% and
Arden Sefelian - 5,1%.
According to the Financial Rating of the Armenian Banks - prepared by ArmInfo NA - by its all-in-all capital Artsakhbank holds the 15th place, according to the authorized capital - the 18th, tills - 13th, credit exposure- 12th, liabilities- 13th, deposits at call - the 9th place. Within the bank's capital structure approximately 73% is accounted for by credit exposure 50,5% out of which is corporate lending and 49,5% - retail lending. In terms of corporate lending the bank holds the 15th place, and the 9th in terms of the retail lending volume.
Though having several branches is Yerevan, Artsakhbank specializes in business loans in the NKR, also implementing strategic socio-economic projects. The overall number of the bank's branches is 23 units basically centered in various NKR districts. In 2013 the bank incurred huge reputation costs in relation to the funding of a mortgage of a residential compound in Yerevan ("Tonus Constructions" LLC). The administration of the company was engaged in a shady business of selling the flats, according to the owners of those.
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