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