Evocabank strengthens leading positions in capital adequacy

ArmInfo.Armenian Evocabank, through the issue of shares in the amount of 2.050 billion AMD, replenished the authorized capital, bringing it to 20 billion AMD ($  41.1 million). Thus, the bank has increased the regulatory total  capital to almost 38 billion AMD ($ 78 million).  This, according to  AmRating analysts, significantly strengthened the bank's leading  positions in terms of capital adequacy.

According to the information posted on the bank's website, the  decision to replenish capital by issuing shares was made on May 29 at  the annual meeting of Evocabank shareholders. And registration of the  results of the issue in the Central Bank of Armenia took place on  August 26.

Karen Yeghiazaryan, Chairman of the Management Board of Evocabank,  stressed: "In their decision to replenish the capital, the  shareholders were guided by the bank's long-term development program  and the goal of contributing to the bank's further growth and  promotion, improving its competitive position and business expansion  policy."

As K. Yeghiazaryan explained in an interview with ArmInfo, as a  result of the issue of shares, the share of the majority shareholder  represented by Prometey-City LLC (RF) increased from 94.99% to  95.15%, and the remaining 4.85% (against the previous 5.01%) belong  to 16 individuals (residents and non-residents).

He explained that within the framework of the issue for 2.050 billion  AMD, 600 million ordinary shares and 1.450 billion preferred shares  were issued. As a result, the replenished authorized capital of 20  billion drams consists of ordinary shares for 15 billion drams and  preferred shares for 5 billion drams.

According to the Financial Rating of Banks of Armenia, prepared by  ArmInfo as of June 30, 2020, Evocabank's total regulatory capital was  35.4 billion drams ($ 73.4 million). In terms of total capital  adequacy, the bank is included in the TOP-5 with an indicator of  20.26% (with a regulatory minimum of 12%), and also occupies a  leading position in terms of capital adequacy with an indicator of  15.59% (with a regulatory minimum of 9% ). The bank finished the  first half of the year with a net profit of 1.01 billion drams ($ 2.1  million), having increased this indicator in y-o-y terms by 16%. As a  result, the accumulated profit of the bank reached 9.997 billion  drams by July 1, increasing the balance sheet capital to 33.1 billion  drams, in the structure of which 54.2% or 17.950 billion drams is the  share of the authorized capital.

To note, Evocabank has been operating in the Armenian financial  market since 1990. In 2017, the bank was re-branded (former Prometey  Bank - Ed. note), which was aimed, among other things, at  transferring banking operations to a modern technological platform  for mobile banking. The bank has developed a new application -  Evocatouch. The renaming led to a change of the bank's strategy,  style of work, business model, approaches, thinking, worldview. The  aspiration is to get out of the traditional concepts of banking and  continue to conduct business in the Mobile First format, i.e. when  developing a product, the focus is made on ensuring the maximum  usability of this format.