Most profitable bank in Armenia: INECOBANK Announces Q3 2017 financial results

ArmInfo.Inecobank CJSC announced its financial results for 3Q 2017, reporting Net profit of AMD 5.5bln (up by 63.7% y-o-y) and ROE of 16.1%.

The Bank has an excellent performance in 3Q 2017 successfully maintaining its leadership position in the market by both Net profit and ROE.

Total assets reached AMD 245bln recording YTD growth of 3.6%. The gross loan portfolio is AMD 173bln, growing by 4.1% since YE 2016. In particular:

• Retail loan portfolio grew by 6.3%, reaching AMD 63bln.
• Corporate loan portfolio grew by 2.8%, amounting to AMD 110bln. 

The Liquidity Ratio (Liquid Assets divided by Total Assets) stood at 27.0% as at 30 September 2017, down from 27.2% as at 31 December 2016.

Total Liabilities reached AMD 197bln recording YTD growth of 2.1%. The bank has a well-diversified liabilities structure with:

• 60.5% of liabilities being customer deposits, and
• 27.6% loans received from IFI’s.

Total customer deposits stand at AMD 119bln as of 3Q 2017:

• 78.0% of customer deposits are retail deposits,
• 22.0% are corporate and institutional deposits.  

The asset quality is improving reaching the level of 2014-2015.

The NPL ratio is 5.6% in 3Q 2017, improving by 1.2 percentage points from 3Q 2016. The NPL coverage ratio stands at 59.7%.

Total Shareholders’ Equity as at 30 September 2017 equaled AMD 48bln, up by 10.3% from YE 2016. The Capital Adequacy Ratio as per the current CBA normative stands at 15.1%. All Armenian banks are required to be compliant with a minimum normative capital of AMD 30bln and capital adequacy ratio of 12%. The Bank was compliant, as of 30 September 2017, with all prudential ratios.

Net Interest Income increased in 3Q 2017 by 15.0% Y-o-Y to AMD 11.5bln. Total Operating Income in 3Q 2017 reached AMD 14.4bln, an increase of 13.0% Y-o-Y. Our cost-cutting efforts resulted in 10.6 percentage point decrease in the Cost/Income Ratio, from 39.8% in YE 2016 to 29.2% in 3Q 2017. Total operating Costs reached AMD 4.2bln a 11.2% Y-o-Y decrease.

Credit impairment losses improved by 13.8% Y-o-Y and reached AMD 3.2bln in 3Q 2017. Cost of credit risk ratio stands at 2.5%, a 0.6 percentage point decrease Y-o-Y.