Friday, June 30 2017 19:49
Karina Melikyan

Moodys assigned to Bank Anelik "B2" rating with forecast "Stable"

ArmInfo. The international rating agency Moody's Investors Service has assigned to Bank Anelik a long-term rating of deposits in national and foreign currencies at the level of "B2" with the forecast "Stable" (Baseline Credit Assessment -BCA). The press service of the Bank informed ArmInfo about this.

"Assignment to the Bank of Anelik on the international scale is an important event for us, I am confident that this fact will allow us to further develop cooperation with partners in Armenia and abroad, and in the context of Armenia - to expand ties with foreign investors," said the Chairman of the Bank's Management Board Anelik Nerses Karamanukyan.

The assigned ratings reflect Anelik Bank's strong loss absorption supported by the bank's robust capital buffers and strengthening income generating capacity. Anelik Bank reported solid capital metrics with a Total Capital Adequacy ratio of 32.8% at 31 December 2016. Moody's expects Anelik Bank's capital position to remain strong over the next 12-18 months supported by strengthening internal capital generation.

In 2016, Anelik Bank's total regulatory capital increased by 165% to AMD 35.5 billion from AMD 13.4 billion as at YE2015, exceeding the minimum capital requirements of AMD 30 billion for Armenian banks effective from 2017. The increase was largely boosted by a capital injection of AMD 21.8 billion ($45 million) contributed by the bank's new shareholder FISTOCO LTD which acquired 59.68% equity stake and became Anelik Bank's majority shareholder . For 2016, Anelik Bank posted net profit of AMD 1.1 billion, up from AMD 215 million in 2015 which translated into a moderate Return on Average Assets of 0.6%. Moody's expects that Anelik Bank's recurring profitability will substantially improve over the next 12-18 months, supported by increased business volumes and strengthening interest margin due to declining funding cost. Moody's expects asset quality to remain adequate, supported by the stabilized operating environment and the bank's increased focus on secured lending products. As of 31 December 2016, the bank's problem loans (impaired corporate and retail loans overdue more than 90 days) accounted for 3.4% of gross loans.

Moody's expects Anelik Bank's liquidity and funding profiles to remain adequate over the next 12-18 months. Customer accounts, mainly comprising corporate deposits, accounted for 70% of total liabilities.  Interbank funding and issued local bonds constitute the remaining portion of the bank's funding and in Moody's view carry a low refinancing risk. In addition, Anelik Bank has maintained a sufficient buffer of liquid assets -- around 20% of total liabilities, consisted mainly cash and liquid government bonds.

According to the Financial Rating of the Armenian Banks prepared by the IA ArmInfo, Anelik Bank by the results of 2016 took the 5th position by assets - 283.5bln AMD, by the credit investments the 4th position - 218.8bln AMD, by the general obligations - the 4th position - 241.9 billion AMD, with the same position secured by time deposits of 156 billion AMD, the lion's share of which - about 70% - is the funds of legal entities. The volume of credit investments of Bank Anelik increased 3.6 times in 2016, which allowed to increase assets in the reporting year by 3 times, as a result of which the share of the loan portfolio in the bank's assets increased from 68% to 77%. The Bank increased its term deposits 3.5 times in the reporting year, which made it possible to increase liabilities almost as much (3.3 times). Net profit increased by 5.3 times to Anelik Bank for 1.2 billion AMD in 2016. (The calculated exchange rate of the AMD as of 31.12.2016 is 483.94 AMD/USD1). As of June 30, 2017, three tranches of Anelik Bank coupon bonds are listed on the NasdaqOMX Armenia exchange - two USD at $ 5 million and 1 billion in AMD. Moreover, the first - a USD tranche was issued in December 2016, and the remaining two fell in 2017. The fourth issue of the Bank's bonds-the next $ 5 million-was held on June 29 this year. And the placement is in progress.

To remind, Anelik Bank has been operating on the market since October 1996. After the additional share issue in November 2016, the membership of the Bank's shareholders changed - the entry of the Cypriot company FISTOCO LTD with a stake of 59.68% reduced the share of the former shareholder in the face of the Lebanese Bank CreditBank S.A.L from 100% to 40.32%. Indirect majority shareholders are physical persons: Tarek J. Khalefe (CreditBank S.A.L) and Vartan Dilanyan (FISTOCO LTD).

POST A COMMENT
Input digits     


News
Armenian deputy minister of economy hosts NDC Partnerhsip delegation Armenian deputy minister of economy hosts NDC Partnerhsip delegation 
Gevorg Papoyan, Minister of Agriculture and Food Security of France  discuss potential cooperation Gevorg Papoyan, Minister of Agriculture and Food Security of France  discuss potential cooperation 
Armenia`s wine heritage presented in London, Manchester Armenia`s wine heritage presented in London, Manchester 
Armenian Airlines suspends flights Armenian Airlines suspends flights 
The October beneficiary of The October beneficiary of "The Power of a Dram" is the Children of Armenia Fund
Head of Synopsys Armenia: IT sector accounts for 5.5% of Armenia`s  GDP, an indicator comparable to developed countries Head of Synopsys Armenia: IT sector accounts for 5.5% of Armenia`s  GDP, an indicator comparable to developed countries 
Armenian CB to establish control over nonpublic funds Armenian CB to establish control over nonpublic funds 
Armenia to take out loans to cover budget deficitArmenia to take out loans to cover budget deficit
Armenia`s deputy minister confirms his resignation Armenia`s deputy minister confirms his resignation 
Armenia`s deputy minister of economy resignsArmenia`s deputy minister of economy resigns
Top official in charge of energy sector dismissed Top official in charge of energy sector dismissed 
Garegin Baghramyan resigns as head of PSRCGaregin Baghramyan resigns as head of PSRC
Second Armenian-UAE business forum held in Abu DhabiSecond Armenian-UAE business forum held in Abu Dhabi
Wizz Air Group successfully promoted Armenia in international markets  - RA Ministry of EconomyWizz Air Group successfully promoted Armenia in international markets  - RA Ministry of Economy
AraratBank and Matenadaran: An Innovative Collaboration Across Science and CultureAraratBank and Matenadaran: An Innovative Collaboration Across Science and Culture
Armenian government approves import of 600 electric cars Armenian government approves import of 600 electric cars 
Armenian customs operation needs improving - official Armenian customs operation needs improving - official 
Taxi companies` turnover billions of drams - official Taxi companies` turnover billions of drams - official 
Simplified car registration procedure for forcibly displaced  Nagorno-Karabakh ArmeniansSimplified car registration procedure for forcibly displaced  Nagorno-Karabakh Armenians
Armenia`s vice-premier proposes recylcing fee for eletric cars Armenia`s vice-premier proposes recylcing fee for eletric cars 
AraratBank Allocates Over 6 Million Armenian drams to Innovative Ideas Over Two YearsAraratBank Allocates Over 6 Million Armenian drams to Innovative Ideas Over Two Years
"Synopsys" company among leaders of Armenia`s technology sector -  premier 
South Caucasus Railways reports 2.8% y/y increase in number of  passengers South Caucasus Railways reports 2.8% y/y increase in number of  passengers 
Balance of Attached Cards in the Idram&IDBank AppBalance of Attached Cards in the Idram&IDBank App
Funding for education, science, culture, and sport programs in  Armenia expected to rise by 5% in 2025Funding for education, science, culture, and sport programs in  Armenia expected to rise by 5% in 2025
Total healthcare expenditure in Armenia`s GDP to decrease in 2025Total healthcare expenditure in Armenia`s GDP to decrease in 2025
Converse Bank- Nelly Kocharyan: The exit of major foreign banks from  Armenia poses a new challenge for the country`s banking sector, as it  grapples with the issue of de-riskingConverse Bank- Nelly Kocharyan: The exit of major foreign banks from  Armenia poses a new challenge for the country`s banking sector, as it  grapples with the issue of de-risking
Ameriabank’s New Offer: Draw of Investment Portfolios for AMD 2MAmeriabank’s New Offer: Draw of Investment Portfolios for AMD 2M
Armenia`s Ministry of Finance on tax arrears and <optimization> of  budget expendituresArmenia`s Ministry of Finance on tax arrears and of  budget expenditures
Net investment flow into Armenian economy shifted from positive  $146.5 million to negative $91.3 millionNet investment flow into Armenian economy shifted from positive  $146.5 million to negative $91.3 million
Armenia Minister of Economy, Ambassador of Germany discuss  opportunities for enhancing bilateral cooperationArmenia Minister of Economy, Ambassador of Germany discuss  opportunities for enhancing bilateral cooperation
The winners of the 2024 joint program between SIA Armenia and The winners of the 2024 joint program between SIA Armenia and "The Power of One Dram" have been announced
WB, ADB collaborate on housing program for Nagorno-Karabakh IDPsWB, ADB collaborate on housing program for Nagorno-Karabakh IDPs
U.S remains dedicated to building economic resilience of Armenia -  ambassadorU.S remains dedicated to building economic resilience of Armenia -  ambassador
Armenia Deputy PM, World Bank discuss potential for enhancing  cooperationArmenia Deputy PM, World Bank discuss potential for enhancing  cooperation
Armenia`s industrial sector still experiencing double-digit growthArmenia`s industrial sector still experiencing double-digit growth
In January-August, electricity production in Armenia increased by  2.4%In January-August, electricity production in Armenia increased by  2.4%
Fixing over-ambitious and unrealistic goals most dangerous - expert Fixing over-ambitious and unrealistic goals most dangerous - expert 
Concept paper outlining creation of AI ecosystem global network to be  presented at  WCIT2024Concept paper outlining creation of AI ecosystem global network to be  presented at  WCIT2024
WCIT2024 officially launched with a focus on Artificial IntelligenceWCIT2024 officially launched with a focus on Artificial Intelligence
Ardshinbank started making international money transfers via UBPay systemArdshinbank started making international money transfers via UBPay system
Ameriabank - fintech partner of DigiTec2024Ameriabank - fintech partner of DigiTec2024
AraratBank Expands International Transfer Options with Golden Money SystemAraratBank Expands International Transfer Options with Golden Money System
10% idcoin with IDBank Mastercard cards10% idcoin with IDBank Mastercard cards
Armenia expects participation of French companies in implementation  of nuclear and renewable energy projects - PashinyanArmenia expects participation of French companies in implementation  of nuclear and renewable energy projects - Pashinyan
12.5% y/y increase in state budget revenues of Armenia in Jan-Sep  202412.5% y/y increase in state budget revenues of Armenia in Jan-Sep  2024
DigiTec2024 officially launched, with over 200 companies presenting  their innovative solutionsDigiTec2024 officially launched, with over 200 companies presenting  their innovative solutions
ACE interested in cooperating with Armenia in wine-makingACE interested in cooperating with Armenia in wine-making
Annual inflation in Armenia in September amounted to 0.6%Annual inflation in Armenia in September amounted to 0.6%
Armenian startups will have the opportunity to receive investments  from the foundation of the legendary Argentine footballer Lionel  MessiArmenian startups will have the opportunity to receive investments  from the foundation of the legendary Argentine footballer Lionel  Messi
More and more young people in Armenia dreaming of becoming nuclear  engineers More and more young people in Armenia dreaming of becoming nuclear  engineers 
Armenia improves its position in Global Innovation Index -2024Armenia improves its position in Global Innovation Index -2024
Ameriabank’s Special Offer for New Mastercard Holders.  1% Cashback and Lots of GiftsAmeriabank’s Special Offer for New Mastercard Holders. 1% Cashback and Lots of Gifts
Double-digit growth of import prices observed in Armenia`s foreign  tradeDouble-digit growth of import prices observed in Armenia`s foreign  trade
532.5mln transactions worth a total of AMD 9,782.7bln  effected in  Armenia in Jan-Sept 2024532.5mln transactions worth a total of AMD 9,782.7bln  effected in  Armenia in Jan-Sept 2024
We are conservative in making forecasts - ADB We are conservative in making forecasts - ADB 
Armenia takes over chairmanship of coordinating council of CIS  financial supervision bodies Armenia takes over chairmanship of coordinating council of CIS  financial supervision bodies 
Bakhytjan Sagintayev: Since the formation of the EAEU, the Union`s  foreign trade grown by 60%Bakhytjan Sagintayev: Since the formation of the EAEU, the Union`s  foreign trade grown by 60%
Cryptocurrency actively and uncontrollably cashed in ArmeniaCryptocurrency actively and uncontrollably cashed in Armenia
Armenia`s first regional landfill to be completed in HrazdanArmenia`s first regional landfill to be completed in Hrazdan
Read more
Exchange rates
14.10.2024
RUB4.030.00
USD387.13-0.04
EUR422.86-0.47
GBP505.55-0.13
CAD280.61-0.66
JPY25.89-0.08
CNY54.66-0.12
CHF449.79-1.46