YEREVAN, June 26. / ARKA /. In 2014 Araratbank earned 2.8 billion drams in net profit, the bank’s deputy board chairman David Harutyunyan told today the bank’s annual meeting.
He said the figure was 6.6% down from the previous year, largely due to increased reserve for possible losses of assets.
Harutyunyan said in 2014 the bank’s assets grew by 10.5% to 138.4 billion drams and its credit investments upped by 10.6% to about 66 billion drams. He noted that in 2014 the bank increased the share of SME lending, thanks to repayment of 44 billion drams worth loans by larger companies. Araratbank increased also agricultural lending and began providing leasing services.
In 2014 the bank increased investment in local bonds approximately by 15.5% to 15.4 billion drams with major investments made in short-term government bonds. Today investments in short-term bonds, maturing in less than 12 months, account for 70% of all such investments.
Araratbank is an active player in the stock market having bought 22 billion drams worth stock in the primary market last year and 60 billion drams worth government bonds in the secondary market. It also conducted repo transactions to the tune of 140 billion drams.
David Harutyunyan said the bank’s liabilities increased last year by 10.5% to 116.69 billion drams. It also attracted the equivalent of 40.4 million drams from international lending organizations which make 34.6% of the bank’s total liabilities.
The bank’s capital in 2014 amounted to 21.6 billion drams, having increased by 10.4%, mainly due to the accumulated profit. Araratbank’s ROE last year was 14.1%, while ROA was – 2, 3%. Both figures were higher than the local average, according to Harutyunyan.
The bank has now 50 branches while its clientele grew by 13.4% to 207,595 people.
Araratbank was established in 1996. The biggest shareholder of the bank is the oil trader company Flash (64.24%), the European Bank for Reconstruction and Development (EBRD) holds 25% and another 10% is owned by RURAL IMPULSE FUND II SA SICAV SIF Company. Araratbank joined NASDAQ OMX Armenia stock exchange in 2009.
The bank’s assets in 2014 increased by 10.48% to 138.36 billion drams, its liabilities amounted to 116.69 billion drams having grown by 10.5%, the bank’s capital saw an increase of 10.3% to 21.6 billion drams, its credit investments grew by 10.6% to 65.9 billion drams, while its net profit declined by 6.6% to 2.8 billion drams. -0-
