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
Team launches powerful solar power plant in Gegharkunik with 16  million kWh annual production capacity Team launches powerful solar power plant in Gegharkunik with 16 million kWh annual production capacity
Armenia, Uruguay discuss opportunities for expanding economic  cooperationArmenia, Uruguay discuss opportunities for expanding economic cooperation
Situation with Armenian cognacs  improved in Russia, but challenges  persistSituation with Armenian cognacs  improved in Russia, but challenges  persist
Flower crisis: Armenia, Russia discuss delivery conditions,   producers suffer lossesFlower crisis: Armenia, Russia discuss delivery conditions,   producers suffer losses
Digital platform for public procurement to be introduced in ArmeniaDigital platform for public procurement to be introduced in Armenia
Sofia to host meeting of Armenian-Bulgarian Commission on economic  and scientific-technical cooperationSofia to host meeting of Armenian-Bulgarian Commission on economic  and scientific-technical cooperation
Economist on flower producers` issues: The Armenian government is  caught up in geopolitical games, with repercussions  ultimately  impacting the country`s citizensEconomist on flower producers` issues: The Armenian government is  caught up in geopolitical games, with repercussions  ultimately  impacting the country`s citizens
Etihad Airways to launch Abu Dhabi-Yerevan flight Etihad Airways to launch Abu Dhabi-Yerevan flight 
Gazprom Armenia working at gas transportation system facilitiesGazprom Armenia working at gas transportation system facilities
143 trucks with liquified gas enter Armenia in four days - minister 143 trucks with liquified gas enter Armenia in four days - minister 
1,775 trucks with Armenian apricots enter Russia - minister 1,775 trucks with Armenian apricots enter Russia - minister 
Armenian Ardshinbank planning to acquire HSBC MaltaArmenian Ardshinbank planning to acquire HSBC Malta
Armenia recognizes the need for direct flights with the Netherlands - David Khudatyan
Minister of Economy: 99 trucks with liquefied gas enter ArmeniaMinister of Economy: 99 trucks with liquefied gas enter Armenia
Rosselkhoznadzor to negotiate with competent Armenian agency on   Armenian flower supply issues Rosselkhoznadzor to negotiate with competent Armenian agency on Armenian flower supply issues
Armenia`s energy transformation rating remains unchanged for the past  9 years - Luys FoundationArmenia`s energy transformation rating remains unchanged for the past  9 years - Luys Foundation
In Armenian insurance market  loss ratio for OSAGO decreased to 73.3%  by July 2025In Armenian insurance market  loss ratio for OSAGO decreased to 73.3%  by July 2025
Yerevan Municipality records 88.5% budget performance in first half  of 2025 Yerevan Municipality records 88.5% budget performance in first half  of 2025 
Armenian NPP connected to country`s power grid ahead of schedule Armenian NPP connected to country`s power grid ahead of schedule 
In Armenian interbank foreign exchange market, dollar transactions decreased while ruble transactions increased from July 7-11, 2025In Armenian interbank foreign exchange market, dollar transactions decreased while ruble transactions increased from July 7-11, 2025
Seven organizations from Armenia to resume flower supplies to RussiaSeven organizations from Armenia to resume flower supplies to Russia
14,757 applications submitted under bad loan program 14,757 applications submitted under bad loan program 
Idram and Alipay+ Facilitate Cross-Border QR Payments in Armenia, Connecting Local Merchants with Global Digital Wallet UsersIdram and Alipay+ Facilitate Cross-Border QR Payments in Armenia, Connecting Local Merchants with Global Digital Wallet Users
Solid waste management program should be implemented throughout  Armenia - Vardan Kostanyan Solid waste management program should be implemented throughout  Armenia - Vardan Kostanyan 
Rossotrudnichestvo and South Caucasus Railways sign memorandum of  cooperationRossotrudnichestvo and South Caucasus Railways sign memorandum of  cooperation
Ardshinbank Participated in Tech Week Vanadzor 2025Ardshinbank Participated in Tech Week Vanadzor 2025
Armenia, WIPO discussed ways to enhance collaborationArmenia, WIPO discussed ways to enhance collaboration
Gevorg Papoyan: Effective protection of intellectual property is  crucial for sustainable economic growthGevorg Papoyan: Effective protection of intellectual property is  crucial for sustainable economic growth
Daily regulation reservoirs in Hovnanadzor to serve 9 villagesDaily regulation reservoirs in Hovnanadzor to serve 9 villages
Armenia`s government to develop cooperation with jewelry industry Armenia`s government to develop cooperation with jewelry industry 
ADB to provide Armenia with $3mln for school reconstruction in  Voskepat village ADB to provide Armenia with $3mln for school reconstruction in  Voskepat village 
Armenia`s government to direct huge funds to information and  cybersecurity Armenia`s government to direct huge funds to information and  cybersecurity 
Armenia top ratify EAEU agreement on Permissible Weights, Axle Loads and Dimensions of VehiclesArmenia top ratify EAEU agreement on Permissible Weights, Axle Loads and Dimensions of Vehicles
EIB to provide Armenia with EUR 50mln for Armenia - Resilient Syunik programme EIB to provide Armenia with EUR 50mln for Armenia - Resilient Syunik programme 
"Business Process Optimization with AI" – a Course for the Senior Management of AraratBank
IBRD to provide Armenia with EUR 96.4mln for implementation of Tourism and Regional Infrastructure Development programIBRD to provide Armenia with EUR 96.4mln for implementation of Tourism and Regional Infrastructure Development program
Armenia`s government to direct 1.189bln to co-financing of local communities development programmes Armenia`s government to direct 1.189bln to co-financing of local communities development programmes 
ANC condemns nationalization of ENA, violation of property rights ANC condemns nationalization of ENA, violation of property rights 
EAEU countries to start testing transportation digitalization in first half of 2026EAEU countries to start testing transportation digitalization in first half of 2026
Central Bank: RA Law Central Bank: RA Law "On Crypto Assets" entered into force in Armenia on July 4, 2025
Gohar Barseghyan:  EEC consistently promotes the enhancement of industrial cooperationGohar Barseghyan:  EEC consistently promotes the enhancement of industrial cooperation
Armenia`s foreign trade sees sharp decline after neutralization of diamond and gold re-export factorArmenia`s foreign trade sees sharp decline after neutralization of diamond and gold re-export factor
Every year, Lori region loses $40 million due to untapped tourism  potentialEvery year, Lori region loses $40 million due to untapped tourism  potential
We are going round in circles: Aram Kocharyan on  current IT  situation in ArmeniaWe are going round in circles: Aram Kocharyan on  current IT  situation in Armenia
Net direct foreign investments in Armenia`s economy up Net direct foreign investments in Armenia`s economy up 
RA president signs laws nationalizing ENA CJSCRA president signs laws nationalizing ENA CJSC
Responsible innovations instead of offshores - CB Responsible innovations instead of offshores - CB 
Armenia, Uruguay to increase bilateral trade turnover Armenia, Uruguay to increase bilateral trade turnover 
Armenian vice-premier takes part in EEC Council`s meeting Armenian vice-premier takes part in EEC Council`s meeting 
Yerevan to host Black Sea Trade and Development Bank`s Annual Meeting  Yerevan to host Black Sea Trade and Development Bank`s Annual Meeting  
Solid Municipal Waste Management project launched in HrazdanSolid Municipal Waste Management project launched in Hrazdan
Armenian IT sector`s output developed as compared with other regional states - expert Armenian IT sector`s output developed as compared with other regional states - expert 
Lawyer on `legal terror` surrounding ENA Lawyer on `legal terror` surrounding ENA 
AraratBank participated in the WEPs regional experience-sharing workshopAraratBank participated in the WEPs regional experience-sharing workshop
1,507 trucks with apricots leave for Russia since beginning of summer 1,507 trucks with apricots leave for Russia since beginning of summer 
TechWeek transforms Vanadzor into an innovation hubTechWeek transforms Vanadzor into an innovation hub
In Q1 2025, unemployment rate in Armenia decreased to 13.9%In Q1 2025, unemployment rate in Armenia decreased to 13.9%
Moody`s upgrades Converse Bank`s ratingsMoody`s upgrades Converse Bank`s ratings
Armenia`s industrial sector is experiencing a significant  declineArmenia`s industrial sector is experiencing a significant  decline
Power generation in Armenia increased by 3.6% in a yearPower generation in Armenia increased by 3.6% in a year
Read more
Exchange rates
15.07.2025
RUB4.910.01
USD384.12-0.02
EUR448.81-0.44
GBP516.87-1.22
CAD280.75-0.24
JPY26.00-0.09
CNY53.54-0.06
CHF482.620.21