YEREVAN, December 22. /ARKA/. Araratbank’s shareholding structure will not change after the bank merge with the Armenian Development Bank, Ashot Osipayn, Araratbank executive director, told journalists on Wednesday.
The merger deal was sealed some 20 days ago, he said, and the Central Bank of Armenia has already given its preliminary consent. Shareholders of the two banks will gather for their joint session, and which a joint bank will be established.
“We will acquire the Armenian Development Bank completely – with its liabilities, assets and capital, which will fully move to Araratbank,” Osipyan said. “And the total cost of the deal will be revealed after it will be completely effected.”
As a result, Araratbank’s total capital will remain unchanged – at slightly more than AMD 32 billion, and it is planned to be built up the next year.
The banker said that the capital adequacy now stands at 28%, while the required minimum is 12%.
In his words, integration processes in this merger are difficult, since ‘there have been no such big mergers in a long time’.
“We will do whatever is necessary to complete the procedures as soon as possible and transparently, in accordance with international standards, and as a result, we will get a new bank – more powerful and large,” Osipyan said adding that changes will have absolutely no impacts on the bank’s clients and ‘all the procedures will be performed smoothly and without any shock’.
He said that the bank has 55 branches and intends to increase the number.
Speaking about development prospects, Osipyan didn’t rule out a probability of acquisition of another bank, though he refrained from pointing out this bank.
The Armenian Development Bank was established in 1990. Prior to 1996 it operated as Bank of Reconstruction and Development. Its shareholders are Ruben Hayrapetyan – 19.7%, Rafik Hayrapetyan – 19.4% and Grigor Termenjian – 16.6%.
The bank’s assets totaled AMD 68 billion in late September 2016 after shrinking 6% since the beginning of the year and liabilities totaled AMD 56.1 billion showing a 8.8% decline. Its capital amounted to AMD 11.8 billion showing 10.8% growth.
Araratbank, the heir of Armsvyaz bank, was established in 1991.
Flash petrol trader holds 64.25% of the bank’s shares, 25% of the shares belong to the European Bank for Reconstruction and Development and 10% to RURAL IMPULSE FUND II SA SICAV SIF.
Araratbank became a NASDAQ OMX Armenia stock exchange participant on January 30, 2009.
The bank’s assets totaled AMD 137.5 billion in the third quarter of this year (4.16% growth) and liabilities AMD 113.4 billion (3.53% growth).
It capital amounted to AMD 24 billion (7.2% growth). ($1 – AMD 481.60). –0—
