YEREVAN, June 27. /ARKA/. Araratbank’s net profit for Jan-May 2014 was larger than that of the same period of two previous years and amounted to AMD 1.8 billion, Ashot Osipyan, chairman of the bank’s board, said Friday at a meeting of the bank’s shareholders.

“We expect quite positive indicators in 2014, since the first five months’ net profit amounted to AMD 1.8 billion, and this result is much higher than that of 2012 and 2013,” he said.

Osipyan stressed that the bank will continue efforts to attract credit resources, will expand its lending to farms and will also open new branches.

In his words, Araratbank attracted $34.4 million from various international organizations in 2013, and now it has arrangements for receiving $27 million in 2014. The bank is also going to sign a $10-million agreement with OPEC Fund for International Development (OFID) and is now negotiating with the Dutch Development Bank to borrow $15 million from it.

“As a whole, 2013 was a successful year for the bank – we have fulfilled our objectives, ensured the net profit of AMD 3.083 billion and are planning to pay dividends,” Osipyan said.

He said Araratbank was building up is net profit before 2013, and in 2013 it had its net profit shrank by AMD 100 million or 5% to AMD 3.083 billion.

The bank’s assets totaled AMD 125.2 billion in 2013 – 10.1% more than in 2012. Its credit investments surged 11.1% in 2013, while the lending saw an increase of 59.6 billion drams.

Individual time deposits grew 29.7% to AMD 22.4 billion. The bank’s total capital amounted to AMD 19.6 billion in late December 2013 after growing 19.3% over the year.

“In 2013 we recorded development in all direction, strengthened our positions in all the segments of the financial market, started extending loans to farms and providing leasing, carried out two bond emissions in dollars and in drams, built up its credit investments and made lending more available,” Osipyan said.

He stressed that Araratbank always had capacity to build up its lending, but there was no demand for sound credit resources in Armenia, and that is why the bank recorded an 11% growth instead of the projected 20 to 22%.

Araratbank, the heir of Armsvyaz bank, was established in 1991. European Bank for Reconstruction and Development holds 25% of the bank’s shares, 74.18% of the shares belong to Barsegh Beglaryan, owner of Flash petrol trader, and less than 1% to minority shareholders.

On January 30, 2009, the bank joined NASDAQ OMX Armenia Stock Exchange.

Araratbank’s assets totaled AMD 131.8 billion by early April, 2014 after growing 5.23% since the beginning of the year and its liabilities grew 5.31% over three months to AMD 111.2 billion. The bank’s capital grew 4.8% to AMD 20.5 billion, credit investments 3.13% to AMD 61.4 billion and liabilities to clients 3.97% to AMD 71.2 billion.

The bank earned AMD 1.1 billion in profits in the first quarter of this year – 51.4% growth. ($1 – AMD 408.12). -0---