Ameriabank’s net profit built up 2% in 1st Q 2014

YEREVAN, April 30. /ARKA/. Ameriabank’s 2014 Q I net profit was 2% higher than that of the same quarter of the previous year, Gevorg Tarumyan, the deputy CEO, a member of the directorial board and the financial director of the bank, said Wednesday at a news conference while summarizing the quarter’s result.

He told journalists that Ameriabank built up its profit this quarter, while Armenian banks had their aggregate profits shrunk.

The banker explained this fall by the increased administrative spending at large banks, which was prompted by the allocations implied by the newly introduced fund pension system and the revision of salaries.

Besides, some banks had their profits reduced because they reserved considerable funds for possible risk of losing lending resources.

«To improve things it is necessary to pursue a more intelligent and economical policy,» he said. «This also shows some deterioration of the credit portfolio caused by the general things in the economy and the worsening financial state at some big borrower companies.»

Tarumyan is convinced that it is necessary to diversify assets and lending resources and to stop extending large loans.

He also pointed out the necessity of consistent accumulation of reserves and revision of lending terms.

«Of course, plenty depends also on things in partner countries, whose crises directly impact Armenia’s loan portfolio, but we see no high risks at the moment,» the expert said.

Ameriabank’s assets grew 8% over the first quarter of this year to AMD 339 billion.

Its liabilities totaled AMD 300 billion in late March after growing 9% over the quarter.
The bank’s loan portfolio grew 2.5% to AMD 181 billion.

Ameriabank is a universal bank that provides investment, corporate and retail banking services in packages. ($1 – AMD 413.59). -0—

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