YEREVAN. – The ARDSHININVESTBANK of Armenia on Tuesday announced the results of its activities for 2012, on the basis of its audited consolidated financial statements in compliance with the IFRS.

Notwithstanding the lasting volatility of the global economy and increasing competition pressures within the Armenian banking sector, the Bank demonstrated a robust growth in its main financial indicators.

The dynamics of the main elements of the Profit and Loss statement for 2012 compared to the same period of 2011:

• Operational costs to income ratio (CIR) decreased by 3,9%, making 47,5%;

• Net profit reached the level of AMD 4,2 bln, which exceeds the same indicator of 2011 by 79,4%;

• Net interest income increased by 18,7%;

• Net operational income  increased by 21,7%.

The above mentioned figures are the confirmation that ARDSHININVESTBANK continues holding leading positions on Armenian financial market.

The net profit of the Bank for 12 months of 2012 totaled to AMD 4,2 bln, exceeding the same indicator of the previous year by 1,8 times, which is the highest growth rate throughout the Bank’s history. Among the key contributors to the net profit growth was the increase of credit portfolio as well as improvement of both - efficiency of risk control systems and general operational efficiency.

In addition to the positive financial results, the Bank continued its efforts towards strengthening the risk management system and development of its operational system. As before, ARDSHININVESTBANK possesses one of the largest branch networks in the country - with the widest geographical coverage.  

The net interest income for 12 months of 2012 totaled to AMD 10,4 bln, increasing by 18,7% compared to the same indicator for 2011. The growth of this figure is supported by constant diversification of the Bank’s business-model and confirms the efficiency of its business.

The net operational income increased by 21,7% compared to the previous year, making AMD 15,1 bln. Such growth rate, unprecedented for the banking industry of any country, is related to reaching the asset distribution targets, as well as rising of the share of high-return assets in total assets (i.e. distribution of excess liquidity in the market through lending).

The relation of expenses to income (CIR), which is one of the main indicators of the profitability of the Bank’s business, made 47,5% as of 1st January 2013. This result is by 10,7% better than the average of the banking system, which is 58,2%. The task of cost management remains a priority and is under permanent control of the Bank’s management.

The assets totaled to AMD 198,5 bln as of 1st January 2013, rising by 23,8%. The Bank’s management didn’t pursue the goal of increasing the volume of assets; meanwhile the target was to maximize the efficiency of the placement of existing assets. As a result, by the end of 2012, the credit portfolio of the Bank reached AMD 136,1 bln, which is 43,0% higher than the year-end figure for 2011. The development of the Retail segment of the Bank has contributed to the sustainable growth of the loan portfolio.

The Retail loan portfolio reached the level of AMD 46,2 bln, rising by AMD 15,6 bln during the year (2012) and making 34% of the total credit portfolio by the end of 2012.

The volume of loans extended by the Bank to enterprises (corporate clients), grew by AMD 25,3 bln, totaling to AMD 89,9 bln, which makes 66% of the Bank’s total credit portfolio.

It is worth mentioning that in addition to the existing positive dynamics of the loan portfolio, the Bank managed to significantly improve the asset quality. For instance, the share of more than 90 days overdue loans (NPL) in total loan portfolio made just 0,83% by the end of 2012.

The equity of the Bank - as the main indicator of its financial stability, grew by 13,7%, totaling to AMD 35,8 bln as of 1st January 2013.

The ratios of profitability on the average equity (ROAE) and on average assets (ROAA), made 12,6% and 2,4% respectively.

Deepening the cooperation with the international financial institutions is an important factor for the Bank’s development, in particular during 2012 the Bank attracted additional resources amounting to USD 8,0 mln from BSTDB and USD 6,0 mln from ADB.

Talking about the results of the activities for the last year, the Chairman of the Management Board of the Bank Mher Grigoryan mentioned: “The achievements of ARDSHININVESTBANK in 2012 confirm the transformation of the Bank into universal financial institution, offering its clients a wide spectrum of quality products. The permanently growing client base is reassuring that the Bank is on the right way”.

As of 1st January 2013, the client base of ARDSHININVESTBANK counted for 9’700 legal and 175’350 physical entities, exceeding the same number for the year 2011 by 32%.

During 2012, the overall network of sales points of the Bank increased by 29 units, achieving a level of 330 units as of 1st January 2013 (including ATMs and POS terminals).

You can access the full version of audited consolidated financial statements of “ARDSHININVESTBANK” CJSC on the Banks web-site at www.ashib.am.