ArmInfo.AraratBank OJSC will begin paying dividends to shareholders from June 28, allocating 2.5 billion drams ($6.4 million) for this from the net profit received for 2023 of 10.8 billion drams ($27.9 million). The remaining 8.3 billion drams ($21.5 million) remain at the disposal of the bank and will be used for its development. This decision was made at the General Annual Meeting of AraratBank shareholders held on June 26.
As the bank explained, responding to a request from ArmInfo, dividends in the amount of 26.7% per common registered share will be paid from the amount provided for these purposes (versus 53.3% in 2022 and 4.65% in 2012). Earnings per share (EPS) at the end of 2023 amounted to 5,779 drams (versus 7,031 drams in 2022 and 2,762 drams in 2012). As a result of capital growth for 2012-2023, the book value of one share also increased significantly (2.5 times), amounting to 31.657 thousand drams at the end of 2023 (against 28.014 thousand drams in 2022 and 12.883 thousand drams in 2012), with an annual growth of 13%.
AraratBank has resumed paying dividends based on the results of 2021. Before that, since 2013, the bank's profits were allocated exclusively to development.
The bank's share capital is represented by 1,873,375 ordinary registered shares, each with a par value of 5 thousand drams. In 2023, AraratBank did not issue shares, but before that, in the fourth quarter of 2022, based on the results of an additional issue of shares in the amount of 2.8 billion drams, the authorized capital was increased by 2023 from 16.8 billion to 19.6 billion drams. As a result, the total capital of the bank increased by 39% in 2022, with a further increase in 2023 by 14.2% - to 59.9 billion drams. Moreover, the growth of total capital was ensured in 2022, including due to a significant increase in profit, the high level of which at 11 billion drams the bank managed to maintain in 2023.
According to AraratBank's annual financial statements for 2023, the bank's assets reached 403.5 billion drams, with an annual growth of 13%. In their structure, 70% or 282.4 billion drams fell to the share of credit investments (including interbank loans), with an annual growth of 41.4%. Moreover, the volume of corporate lending increased over the year by 17% to 104.8 billion drams, retail lending by 22.3% to 98.7 billion drams, and interbank loans jumped 4.6 times to 55.2 billion drams. In terms of lending to the economy, AraratBank placed the largest amount of funds in the trade sector (52.3 billion drams, annual growth by 15%), the construction sector (19.7 billion drams, annual growth by 43%) and the industrial sector (over 11 billion drams, annual growth by 36%).
Total liabilities increased over the year by the same amount - by 13% to 344.2 billion drams. In their structure, the share of liabilities to clients (deposits and current accounts) accounted for 80% or 275.7 billion drams, with an annual growth of 20.2%. The volume of funds raised from international financial organizations amounted to 51.3 billion drams or 15% of the bank's total liabilities.
In particular, in liabilities to clients, the bank managed to achieve high growth in 2023 in terms of funds from individuals: time deposits - by 34.2% to 94.6 billion drams, demand liabilities - by 38.6% to 77.2 billion drams. At the same time, time deposits and demand liabilities of legal entities increased slightly during the reporting year, amounting to 17.2 billion and 86.7 billion drams, respectively.
AraratBank is also active in the securities market, not only as an issuer, but also as an underwriter and market maker of corporate bonds of various issuers. Its activity as an issuer and the confidence of investors is evidenced by the high growth of funds received from the placement of its own bonds, by 42% in 2023 - up to 7.8 billion drams.
In 2023, the share of the majority shareholders of AraratBank OJSC remained at the level that was recorded following the results of the additional issue of shares carried out in the fourth quarter of 2022. Then the share of the Flash company (one of the largest oil traders in Armenia) decreased from 72.73% to 68.36%, the share of Barsegh Beglaryan (a well-known entrepreneur, head of Flash) decreased from 22.62% to 21.37%, and the share of the indirect holder in the person of the son of the owner of "Flash" Sanasar Beglaryan, on the contrary, increased from 4.29% to 9.94%. In total, the authorized capital of AraratBank OJSC is represented by 73 shareholders - residents of the Republic of Armenia, of which 72 are individuals. In terms of branch network coverage, ArartBank is in the TOP-5, having 50 branches, of which 22 are located in Yerevan and 28 in the regions of Armenia.
