Thursday, March 18 2010 10:48
Capitalization of Areximbank-Gazprombank Group to allow increasing assets thrice
ArmInfo. Within the frames of strategic development, Areximbank-Gazprombank Group is going to join the
largest banks of Armenia until 2012. The relevant decision has been taken in Yerevan, at the sitting of the bank's Board with participation of Russian Gazprombank OJSC's representatives.
The Areximbank-Gazprombank Group told ArmInfo that the new development strategy lays down a number of strategic tasks before the bank to gain high-level basic financial indices, which will allow the bank to join the Armenian banking system leaders and become a strategic financial structure of Armenia with a large branch network. According to the strategy, the financial model of the bank development envisages capitalization in the amount, which will allow increasing the level of assets thrice (to 300 mln USD) until 2012, and the credit portfolio – over 3.5 times.
In this connection, a number of specific steps have already been taken, Thus, at the end of 2009, the capital of the bank was increased by 3.850 bln AMD. The growth in the total capital is conditioned by the necessity to activate crediting and as a consequence of growth in credit portfolio, as well as further attraction of big corporate clientele by the bank. In addition, in late January 2010 the bank attracted a subordinated loan worth 3.850 bln AMD from the Central Bank of Armenia. At present, the total capital of Areximbank-Gazprombank Group exceeds 16 bln AMD.
According to the Analysis and Ranking of the Armenian Banking System by the Agency of Rating Marketing Information (ArmInfo), as of 1 Jan
2010, the total capital of the bank made up 14.1 bln AMD or $37.1 mln (8th position), assets - 39 bln AMD or $103.3 mln (14th position), in
which 55,6% fell on provision of crediting - 21.7 bln AMD or $57.5 mln (13th position). The banks completed the year 2009 with a net profit of 199.2 mln AMD ($527.1 thsd).
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