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ARARATBANK INTENDS TO BECOME OPEN JOINT-STOCK COMPANY
Yerevan, January 31. ArmInfo. The Armenian commercial bank,
Araratbank, intends To increase its capital by 1 bln drams by an open
issue of shares, the Chairman of the Bank's Governing Board, Ashot
Osipyan, told ArmInfo. The transformation of Araratbank into an open
joint-stock bank proceeds from the adopted strategic development
plan. "Within the frames of these plans, we seriously study the market
prospects and prepare a program of transfer to a public status", he
said. Along with it, Osipyan stressed, negotiations for selection of
an investment company, that will deal with distribution of the Bank's
securities in an open market, are underway. "It is yet early to talk
about a specification, much depends on the market, on the situation in
the financial market, in the exchange market and on the degree of
successful functioning of the capital market in the country",
A. Osipyan said.
According to him, the own capital of the Bank in December, 2006, was
increased by 1.08 bln drams to 3,8 bln drams by the end of the
year. "Our plans for 2007 are very aggressive from viewpoint of both
the increase of assets and extension of the branch network, as well as
the cooperation with international organizations. The Bank implements
the international standards of risk-management, the new credit
products, it also works over special products for exporters",
A. Osipyan underlined.
To note, upon successful completion of the selection procedure, in
2007 the Ararartbank will participate in the credit program of the
German KfW state Bank for the hypothec market development. As a result
of activation of this direction, the Bank's hypothec portfolio will be
increased from the present 300 mln drams to 1 bln drams. The Bank
extends the credit market segments. As priority spheres of crediting,
it has chosen the financing of such areas of economy as energy,
construction, the processing industry. The Bank develops the business
of charge cards with increase of the number of card-holders 10 times
to 10,000. In this sphere, the Bank will shortly advance a special
product to the market. "We aim at reaching an equilibration of the
credit portfolio as an important component of the risk-management
policy. All the economy branches of the country will be presented in
the credit portfolio for this purpose.
It is envisaged to increase the portfolio of business and consumer
credits in 2007 by nearly 4 times, the Bank's assets will grow 1,8
times to 15,0 bln", A. Osipyan said, having also noted the Bank's
activation in the consumer crediting market. "As a universal bank, we
shall also develop the retail products and the network of
branches. Ten branches in different towns of Armenia will join the
functioning branches in Yerevan and Stepanakert. We intend to open 2
new branches in Yerevan till the end of March. Further, a branch
network will appear in Abovyan, Vanadzor, Gyumri,
Armavir. Negotiations on acquisition of office buildings and premises
are underway", A. Osipyan said.
As he underlined, the Bank has been earlier working t the expense of
the own capital an had insufficient volume of attracted means: "The
Bank successfully manages this important task for the attraction of
new clients and extension of the deposit base. In view of this, we are
preparing interesting projects for depositors. In February, we shall
announce new kinds of deposits, deposit and card products".
The Bank has completed the pilot program for the creation of an
electron banking system, which arouse the interest and high assessment
of the clients.
More attention is paid to the attraction and preparation of a
professional staff via contests and trainings.
>From the viewpoint of growth of non-percent incomes, in 2006 the Bank
has started to serve the Treasury and the communal payments, it has
become a dealer of state bonds and it shortly envisages to become the
Government's agent for the state internal debt control. The volumes of
transactions with state bonds have exceeded 4.5 bln drams within the
two last month, 2006. The Bank shows more activity in a work in the
currency market. "Our task in 2007 is to become a market-maker in the
internal currency market, assuring permanent direct and reverse
currency quotations", A. Osipyan said.
To remind, the Araratbank is an assignee of Armsvyazbank, having been
withdrawn from the regime of temporary administration of RA CB in
October, 2004.
The Bank has successfully passed the procedure of financial recovery,
the Bank's shares were acquired by the "Flash" Company, the country's
biggest oil-trader. In autumn, 2006, Ashot Osipyan, one of the
successful bank top-managers, has become the head of the Bank.
Yerevan, January 31. ArmInfo. The Armenian commercial bank,
Araratbank, intends To increase its capital by 1 bln drams by an open
issue of shares, the Chairman of the Bank's Governing Board, Ashot
Osipyan, told ArmInfo. The transformation of Araratbank into an open
joint-stock bank proceeds from the adopted strategic development
plan. "Within the frames of these plans, we seriously study the market
prospects and prepare a program of transfer to a public status", he
said. Along with it, Osipyan stressed, negotiations for selection of
an investment company, that will deal with distribution of the Bank's
securities in an open market, are underway. "It is yet early to talk
about a specification, much depends on the market, on the situation in
the financial market, in the exchange market and on the degree of
successful functioning of the capital market in the country",
A. Osipyan said.
According to him, the own capital of the Bank in December, 2006, was
increased by 1.08 bln drams to 3,8 bln drams by the end of the
year. "Our plans for 2007 are very aggressive from viewpoint of both
the increase of assets and extension of the branch network, as well as
the cooperation with international organizations. The Bank implements
the international standards of risk-management, the new credit
products, it also works over special products for exporters",
A. Osipyan underlined.
To note, upon successful completion of the selection procedure, in
2007 the Ararartbank will participate in the credit program of the
German KfW state Bank for the hypothec market development. As a result
of activation of this direction, the Bank's hypothec portfolio will be
increased from the present 300 mln drams to 1 bln drams. The Bank
extends the credit market segments. As priority spheres of crediting,
it has chosen the financing of such areas of economy as energy,
construction, the processing industry. The Bank develops the business
of charge cards with increase of the number of card-holders 10 times
to 10,000. In this sphere, the Bank will shortly advance a special
product to the market. "We aim at reaching an equilibration of the
credit portfolio as an important component of the risk-management
policy. All the economy branches of the country will be presented in
the credit portfolio for this purpose.
It is envisaged to increase the portfolio of business and consumer
credits in 2007 by nearly 4 times, the Bank's assets will grow 1,8
times to 15,0 bln", A. Osipyan said, having also noted the Bank's
activation in the consumer crediting market. "As a universal bank, we
shall also develop the retail products and the network of
branches. Ten branches in different towns of Armenia will join the
functioning branches in Yerevan and Stepanakert. We intend to open 2
new branches in Yerevan till the end of March. Further, a branch
network will appear in Abovyan, Vanadzor, Gyumri,
Armavir. Negotiations on acquisition of office buildings and premises
are underway", A. Osipyan said.
As he underlined, the Bank has been earlier working t the expense of
the own capital an had insufficient volume of attracted means: "The
Bank successfully manages this important task for the attraction of
new clients and extension of the deposit base. In view of this, we are
preparing interesting projects for depositors. In February, we shall
announce new kinds of deposits, deposit and card products".
The Bank has completed the pilot program for the creation of an
electron banking system, which arouse the interest and high assessment
of the clients.
More attention is paid to the attraction and preparation of a
professional staff via contests and trainings.
>From the viewpoint of growth of non-percent incomes, in 2006 the Bank
has started to serve the Treasury and the communal payments, it has
become a dealer of state bonds and it shortly envisages to become the
Government's agent for the state internal debt control. The volumes of
transactions with state bonds have exceeded 4.5 bln drams within the
two last month, 2006. The Bank shows more activity in a work in the
currency market. "Our task in 2007 is to become a market-maker in the
internal currency market, assuring permanent direct and reverse
currency quotations", A. Osipyan said.
To remind, the Araratbank is an assignee of Armsvyazbank, having been
withdrawn from the regime of temporary administration of RA CB in
October, 2004.
The Bank has successfully passed the procedure of financial recovery,
the Bank's shares were acquired by the "Flash" Company, the country's
biggest oil-trader. In autumn, 2006, Ashot Osipyan, one of the
successful bank top-managers, has become the head of the Bank.