YEREVAN, December 14. /ARKA/. Taron Ganjalyan, executive director of Inecobank, which bought 100% of ProCredit Bank’s shares on Thursday, told journalists that the ProCredit Bank’s team will continue working.
Inecobank has bought 100% of ProCredit Bank, a subsidiary of ProCredit Holding AG & Co. KGa A.
The deal is financed from capital investments of the European bank for Reconstruction and Development (EBRD), replenishment of Inecobank two large shareholders’ capital and the $20 million attracted from the International Finance Corporation.
The EBRD made capital investment amounting to AMD 9.8 billion by purchasing 22.7% shares of Inecobank, and $20 million was attracted from the International Finance Corporation.
Ganjalyan said that ProCredit Bank had created a very strong team.
“We are happy that this team will join us. Its knowledge and skills will be useful to us,” he said adding that one of the aims of this deal was to unite with the ProCredit Bank team.
“This team will strengthen Inecobank and will continue working with us,” Ganjalyan said.
ProCredit Bank received its license from the Central Bank of Armenia on December 7, 2007. The bank’s assets totaled AMD 56.9 billion in late September 2015 (16.75% decline since the beginning of the year) and liabilities AMD 47.7 billion (16.75% decline).
Its capital amounted to AMD 9.2 billion (0.81% growth) and its loan portfolio AMD 44 billion (15.7% decline). The bank earned AMD 88.2 million in profits in Jan-Sept 2015 against AMD 330 million in the same period a year before.
Inecobank CJSC was registered on February 7, 1996. This was the first bank in Armenia to present the first installment lending program.
Before the EBRD bought 22.7%, the bank’s shares were distributed among Baloyan A. (35.23%), Safaryan K. (30.34%), DEG Deutsche Investitions-und Entwicklungsgesellschaft mbH (12.58%) and the International Finance Corporation (9.32%). Upon completion of the deal the two key shareholders will have a little more than 50%.
Inecobanks’ assets totaled AMD 158.1 billion in Jan-Sept 2015 (1% decline since the beginning of the year) and liabilities AMD 129 billion (3.5% decline). Its capital amounted to AMD 29 billion (11.3% growth) and loan portfolio 101 billion (6.5% decline).
The bank earned AMD 3.3 billion in profits in Jan-Sept 2015 – 4.4% year-on-year decline. ($1- AMD 484. 79). —0—-
