ARARATBANK closed 2016 with net profit of 1.1bln AMD

ArmInfo. ARARATBANK closed 2016 with a net profit of 1.1bln AMD, providing dynamic of annual growth for 15.7%, Ararat Bank executive director Ashot Osipyan stated during the annual meeting of shareholders on June 16.

"2016 was successful for us. We made the decision to obtain Armenian Development Bank, and as a result growth on all parameters was registered", he stressed.

According to Osipyan, the Bank, as a result of consolidation, managed to increase total stock for 2016 by 47.1% to 33.1bln AMD, including nominal capital - 2 times to 16.8 billion AMD, accumulated profit - by 7.7% to 15.4 billion AMD. Balance value of the bank's shares in the annual section increased from 17 590 AMD to 18 816AMD. At the annual meeting, shareholders paid dividends preferred the capitalization of the Bank. Osipyan noted that full integration with the Armenian Development Bank should be expected already in September 2017.

Osipyan noted that the assets of the Bank increased by 13% to 149.2 billion AMD during the reporting year, mainly due to the growth of interbank loans - 2 times to 13.3 billion AMD, investments in securities - by 78.1% to 26.9 billion AMD and credit investments - up to 66.2 billion AMD.

General liabilities of the bank for 2016 increased by 5.9% to 116.1 billion AMD, which is due to the growth of funds received from placement of own corporate bonds by 15.2% to 3.8 billion AMD, liabilities to customers (demand deposits and time deposits) by 6.1% to 62.9 billion AMD and attracted interbank loans - by 4.3% to 48.2 billion AMD.

As a result of consolidation, ARARATBANK branches' number increased from 55 to 65, and  the customer base grew by 23% to 144,073 customers. At the same time, the number of plastic cards issued by the bank increased by 13.3% or 15 884 units- up to 150 735 cards. Coefficients of efficiency for the reporting year grew insignificantly: in the profitability of assets (ROA) - from 0.7% to 0.8%, and return on equity (ROE) - from 4.3% to 4.5%.

As a result, ARARATBANK share in total assets of the banking system of Armenia was 4.9%, in loans - 4.1%, securities - 22.1%, total liabilities - 4.8%, liabilities to the client - 4.6%. In the total capital of the system, ARARATBANK accounts for 5.1%.

According to the Financial Rating of Armenian Banks  data prepared by ArmInfo, before the  consolidation with the Armenian Development Bank, the assets of ARARATBANK increased by 63.3% in 2016 to 215.5 billion AMD, liabilities - by 66.5% to 182.4 billion AMD, credit portfolio - by 56.8% to 112.2 billion AMD.  Earlier on December 20, the Central Bank of Armenia registered the merger agreement of Armenian Development Bank and ARARATBANK. Upon completion of the process stipulated by the agreement, an application was filed to the CBA to register the results of the two banks' merger. ARARATBANK OJSC keeps operating and it becomes the legal successor of Armenian Development Bank.