Armeconombank earns AMD 345.5 million in profits in 2012

14.06.2013 18:07
Armeconombank earns AMD 345.5 million in profits in 2012

YERERVAN, June 14. /ARKA/. Armeconombank earned AMD 345.5 million in profits in 2012 against AMD 497.3 million in 2011, Armen Naljyan, chairman of the bank’s board, told journalists on Friday.

“The major cause of this decline is competition among banks,” he said. “There are 21 banks in Armenia now, and the banking sector is the only area with healthy competition and without monopolies.”

Naljyan said that this competition keeps interest rates on deposits high and drives interest rates on loans down. As a result, margin is narrowing and profits are shrinking.

As another profit-contracting factor, he pointed out large investments made by the bank in 2012 to modernize and re-equip its branches.

Naljyan said the bank’s assets grew 6% in 2012, compared with the previous year, to AMD 63.9 billion, and its outstanding loan portfolio grew 14.1% from AMD 29.3 billion in 2011 to AMD 33.4 billion in 2012.

“Armeconombank’s liabilities grew 6.6% from AMD 51.1 billion in 2011 to AMD 54.4 billion in 2012, and this shows the growing confidence of partners and clients in this bank,” he said.

The banker also said that Armeconombank’s total capital amounted to AMD 9.5 billion in 2012 after growing 2.5%, compared with 2011, thanks to profits.

He said the bank issued 25,500 plastic cards in 2012. As a result, their total number reached 143,000 by the end of that year.

The number of the bank’s clients exceeded 108,500 in 2012 showing 2.2% year-on-year growth. Of them 102,500 were individuals and 6,100 corporate clients.

Armeconombnak has 39 branches in Armenia and Artsakh (Nagorno-Karabakh Republic).
Armeconombank was registered on August 26, 1991.

European Bank for Reconstruction and Development holds 25%+one share, 53.4% of the bank shares belong to the Sukiasyans, the family that had established the bank and the remaining 20% belong to resident and nonresident individuals. ($1 – AMD 411.64). ---0----

Tags: , , Новости Армении АМИ Новости-Армения

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