ARARATBANK to become a powerful player on market of classic, digital and investment banking in Armenia
ArmInfo.In the midterm perspective ARARATBANK will become a powerful player on the Classic, Digital and Investment banking in Armenia, Chairman of the Bank Board Ashot Osipyan stated at the meeting with journalists. He noted that further development of the bank in the abovementioned three directions is envisaged by the new strategic program approved by the shareholders. To recall, the bank is currently in the process of acquisition of Armenian Development Bank, the Central Bank of Armenia has already given its agreement on the issue.
The deal will significantly strengthen the bank's positions on the market and its competitiveness, will increase the amount of transactions and will create favorable conditions for active introduction of new products and technologies.
Osipyan informed that despite unfavorable economic climate the bank as of today plays a significant role in lending to business and is actively involved in project financing in the fields of construction and small industrial production. Such success according to Osipyan became possible due to significant strengthening of the risk management system, which directly influences high level of quality of the bank's credit portfolio. Talking about technological development of the bank Osipyan emphasized that although the bank has a great number of branches it intends to take the path of digital improvement developing internet banking, mobile banking and the network of cash-in ATMS already installed by the bank. As for expanding investment activities of ARARATBANK its head mentioned serious experience the bank has in this field. Besides, the bank is an agent of placement of state securities and has the largest bond issues in the banking sector of the country. The bank intends to significantly expand the functions of underwriter and market maker on the stock market of the country. He agreed with the opinion that it is necessary to intensively develop the stock market of the country aimed at attracting capital for real sector of economy which seriously needs development.
Answering to journalists' questions Osipyan emphasized that due to drop of economic activity the country is facing a very serious situation. "On the one hand we see a developed banking system, on the other poorly developed real sector, part of which operates in shadow". This circumstance raises concerns and the question arises who will be stronger. That is why the real sector should be developed first of all by revising tax policy, reducing tax burden in order to create an environment ensuring fair competition in real sector. He expressed hope that the government will be able to solve these serious problems and next year business climate will be improved in the country, which in turn will significantly impact credit market and will allow the banks financing economy more actively. According to him in 2017 high competitive climate will be maintained in the banking sector and a lot of banks are revising their strategy in order to remain competitive on the market. "It is due to this that economic entities can receive cheap but qualitative banking services'', Osipyan stressed.
To recall, a month ago ARARATBANK issued shares aiming to replenish capital for meeting the new standard to come into force from 2017 and as a result ensured total capital amounting to 33 bln drams.
According to the Financial Rating of Armenian Banks by ArmInfo, as of 1 Oct 2016, the assets of ARARATBANK OJSC amounted to 137.5 bln AMD (up 9.3% versus a year before), general obligations - 113.4 bln AMD (up 9.7%), accumulated profit - 12.4 bln AMD, lending - 70 bln AMD (up 4.7%), time deposits - 22.5 bln AMD, call liabilities - 28.7 bln AMD, investments in government bonds - 26 bln AMD (up 2.3-fold). In Jan-Sept 2016, the net profit of ARARATBANK amounted to 732.8 mln AMD, including 406.5 mln AMD in Q3. Following the recent issue of shares in November, in the structure of the shareholders' capital 72.73% belongs to Flash oil trader, 18.14% - to the EBRD, 8.58% - to the Rural Impulse Fund II, with the remaining 0.55% distributed among 82 minority shareholders. ARARATBANK has 54 branches (4th position): 27 in Yerevan, 26 in the provinces and 1 in Nagorno-Karabakh