Thursday, July 27 2017 11:02
Alina Hovhannisyan

INECOBANK increased net profit in first half of 2017 by 81.3% per annum to 3.6 billion AMD

INECOBANK increased net profit in first half of 2017 by 81.3% per annum to 3.6 billion AMD

ArmInfo. INECOBANK completed the first half of 2017 with a net profit of 3.6 billion AMD, providing an annual growth of 81.3%. As the press service of the Bank told ArmInfo, the level of return on equity - ROE was brought to 15.8%. INECOBANK has secured the leading position in these indicators.

Total assets reached AMD 240bln recording YTD growth of 1.6%. The gross loan portfolio is AMD 171bln, growing by 2.9% since YE 2016. In particular Retail loan portfolio grew by 6.1%, reaching AMD 63bln, while the Corporate loans maintained the YE 2016 level amounting to AMD 108bln.  The Liquidity Ratio (Liquid Assets divided by Total Assets) stood at 26.6% as at 30 June 2017, down from 27.2% as at 31 December 2016.

Total Liabilities reached AMD 194bln recording YTD growth of 0.7%. The bank has a well- diversified liabilities structure with 55.7% of liabilities being customer deposits and 27.6% loans received from IFI's. Total customer deposits stand at AMD 108bln as of 1H 2017. 77.6% of customer deposits are retail deposits, while 22.4% are corporate and institutional deposits.  

The asset quality is improving reaching the level of 2014-2015. The NPL ratio is 6.0% in 1H 2017, improving by 0.2 percentage points from 1H 2016. The NPL coverage ratio stands at 60.4%.

Total Shareholders' Equity as at 30 June 2017 equaled AMD 46bln, up by 5.6% from YE 2016. The Capital Adequacy Ratio as per the current CBA normative stands at 15.4%. 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 June 2017, with all prudential ratios.

Net Interest Income increased in 1H 2017 by 12.7% Y-o-Y to AMD 7.5bln. Total Operating Income in 1H 2017 reached AMD 9bln, an increase of 10.4% Y-o-Y. Our cost-cutting efforts resulted in 9.5 percentage point decrease in the Cost/Income Ratio, from 39.8% in YE 2016 to 30.4% in 1H 2017.  Total operating Costs reached AMD 2.8bln a 16.1% Y-o-Y decrease.

Credit impairment losses improved by 11.8% Y-o-Y and reached AMD 2.1bln in 1H 2017. Cost of credit risk ratio stands at 2.5%, a 0.5 percentage point decrease Y-o-Y.

The net-profit in 1H 2017 is AMD 3.6 bln, a growth of 81.3% Y-o-Y.

To note, "INECOBANK" CJSC, established in 1996, is one of the most dynamically developing banks on the financial market of Armenia. December 14, 2015, the process of merger of ProCredit Bank with INECOBANK was completed. December 16, 2015 EBRD registered as a shareholder of INECOBANK.  With the entry of the EBRD into the capital of INECOBANK, the share participation of the majority shareholders was distributed as follows: the total share of the two major shareholders - Avetis Baloyan and Karen Safaryan exceeded slightly more than 51% (against the previous total 65.57%), the EBRD share was 22.7% Other investors DEG and IFC, who did not take part in the transaction, naturally declined - to 9.6% and 7.1% respectively. (The calculated exchange rate of the AMDto the USD as of June 30, 2017 was 480.47 AMD/USD1).

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Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000