ArmInfo. "Region" Finance Industrial Corporation owned by famous Russian businessman Karen Safaryan, who is also ultimate beneficiary owner and chairman of Ardshinbank's board, has bought subsidiary of Russian Gazprombank, Armenian Areximbank-GPB Group. According to the joint press release of Ardshinbank and Areximbank the deal was finished on October 7 2016.
On the following stage Areximbank and Ardshinbank intend to launch the process of merge prescribed by the law, as a result of which the merged financial structure will become the largest in Armenia in terms of capital, assets and branch network. Particularly, Ardshinbank's capital will reach almost 74 bln drams, assets-540 bln drams and the number of branches will increase to 72 versus current 56.
According to the statement the merged bank will increase its financial figures and will also improve modern technologies, expand scope of services and enrich the number of employees with new professionals. All this will significantly enlarge Ardshinbank's opportunities to provide a wide range of qualitative bank services both to corporate and retail business. Thus, Ardshinbank will further strengthen its leading positions in the banking sector of Armenia and will gain new competitive advantages on the market.
To recall, "Region" Finance Industrial Corporation was established in 2006 and since then has made investments in Armenia.
To note, Ardshinbank (former Ardshininvestbank renamed in Nov 2014) was founded in 2003. As of today it has 56 branches, one service center and a representation office in Paris. It is among Top Three Banks in terms of main balance figures. Areximbank-GPB Group, founded in 1998, has 16 branches and one service center. Till October 7 2016 it was subsidiary of Russian Gazprombank.
According to ArmInfo's Financial Rating of Banks, the shareholders of Ardshinbank are Center of Business Investments LLC - 97.52%, Aram Andreasyan - 1.57%, Karen Safaryan (RF) - 0.37%, Rudik Mkrtumyan and Khachik Zakaryan - by 0.27%, and International Business Center CJSC JV - 0.0005%. The total capital of Ardshinbank as of July 1 2016 amounted to 51.3bln drams (4th place), assets - 452.8bln drams (2nd place), loans - 384.7bln drams (1st place). The Bank retains its leadership position by net profits too - 2.2bln drams for the 1st half of 2015 with a 47.6% year over year growth. As of July 1 2016, Areximbank's total capital amounted to 23bln drams, assets -98bln drams. Loans - 61bln drams, and the accumulated loss - 15bln drams with a 6.4% year over year growth.