VTB Bank (Armenia) earns record high profit of 2 billion drams in 2020

YEREVAN, May 18. /ARKA/. VTB Bank (Armenia) CJSC has published its annual financial statements for 2020 in accordance with International Financial Reporting Standards (IFRS), the press service of the bank reported.

According to the bank, in 2020, it earned the record high profit of 2 billion drams over the past few years. Its net interest income amounted to 23.1 billion drams, having increased by 10% from the previous year, while net fee and commission income increased by 28% to 3 billion drams.

Also, the bank’s total assets increased by 8.6% year-on-year to 333.8 billion drams and the loan portfolio showed an increase of 7.7% growing to 227.7 billion drams, making 68.2% of the total assets of the bank.

Loans to individuals increased by 9.1% to 184 billion drams, and loans to legal entities grew  by 2.4% to 43.6 billion drams. The bank’s total liabilities grew by 9.5% to 284.1 billion drams, including 261 billion drams of attracted funds, which upped by 7%.

VTB Bank (Armenia) is the leading bank in Armenia in terms of several key indicators. Thus, its  consumer loan portfolio at the end of 2020 stood at 94 billion drams, or 21% of the sector’s total. The number of issued payment cards reached 360 thousand. (14% of the sector’s total), the number of salary cards grew to 96 thousand. (15% of the sector’s total), pension cards grew to 114 thousand (36%). The volume of paid remittances amounted to 88.3 billion drams or 13.5% of the total.

VTB also holds a leading position by size of providing services to government-funded programs, which increased by 28% in 2020, to 81.5 billion drams. In addition, the bank has the widest network of branches and ATMs.

In 2020, VTB continued to develop both its retail and corporate businesses, launching for the first time in the Armenian banking market online POS and consumer lending, payment rings, children’s, youth and student cards, as well as a number of new lending programs with major car dealers and developers.

The bank opened the first mortgage center in the country, which is the single comfortable and technological platform that combines all services related to the purchase of housing on a turnkey basis. By expanding the product line and remote service channels in 2020, the bank attracted new customers and increased the loyalty of its customers. The number of active individual clients reached 561 thousand, which is 44% of the economically active population of the country.

As part of brokerage services, VTB launched a brokerage service – an electronic access for concluding transactions in the Russian and foreign securities markets through the Quik online trading system and the VTB My Investments mobile application.

In the segment of medium and small businesses, VTB provided financing to Tel-Cell CJSC, Toyota Yerevan car dealership, Ardis LLC, Yerevan Sparkling Wine Factory OJSC and others.

CEO and Chairman of the Board of Directors of VTB Bank (Armenia) CJSC Ivan Telegin said that despite the objective difficulties of 2020, the bank managed to secure a record profit.

“We have improved the quality of our products and services, increased the efficiency and manageability of business processes. In 2021, as part of the bank’s strategy, we plan to launch such important projects as  transition to the Multicard processing center in order to improve the quality of service for cardholders, a new high-tech mobile and Internet bank,  a national tourist card based on the ArmenianGuide mobile application and our own money transfer system. In addition, VTB will continue to actively participate in all government programs and initiatives aimed at the economic development of the country, including support for agriculture and small business,” he said.

VTB Bank (Armenia) CJSC is regulated by the Central Bank of the Republic of Armenia. ($1 – 521.55 drams) -0-

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