RESULTS OF BANK’S ACTIVITIES FOR THE YEAR 2012 ON THE BASIS OF AUDITED FINANCIAL STATEMENTS
On 30th of April 2013 ARDSHININVESTBANK has announced the results of its activities for the year 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 has demonstrated a robust growth of 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 here
ARDSHININVESTBANK JOINS STATE STUDYING LOAN PROGRAM
From 25 April 2013, "ARDSHININVESTBANK" CJSC launches providing loans in the frame of state studying loan program. Loans will be provided to the students of Bachelor’s or Master’s degrees without substantiate income documents by the following conditions:
- annual 12 percentage from which 2 percentage will be subsidized by the Government and 3 percentage for the student showing excellent academic progress
- maximum period is 10 years
- maximum amount is 1.800.000.00 AMD for the entire study period, but not more than the annual tuition fee for the academic year and at the same time not more than 450.000.00 AMD
- the guarantor is the student’s parent or guardian
- no other fees are charged
- the loan will be approved and provided during two working days
- the following documents are required: passport (student’s and guarantor’s) and reference from the Higher Educational Institution.
During the study period, only loan percentages will be paid and repayment of loan principal amount will start from the next month of the students’ graduation.
The loan will enable the students to pay their tuition fees on time by the best credit conditions provided by "ARDSHININVESTBANK" CJSC. The loans will be provided to the students of state and non-state accredited Higher Educational Institutions in "ARDSHININVESTBANK" CJSC headquarters and in all 55 branches.
For additional information, you may call by the following number: 060 270404. Addresses of the branches can be found here
ARDSHININVESTBANK LAUNCHES PROVIDING LOANS TO SOCIAL PACKAGE HOLDERS
From April 2, 2013, "ARDSHININVESTBANK" CJSC starts providing loans to social package holders up to six fold of the amount of social package by 12-14 annual percentage depending on the Customer’s credit history. The loans will be given in non-cash in headquarters and in all the branches of "ARDSHININVESTBANK" CJSC, for the services provided by the companies cooperating with the Bank approved by the Government of RA (the list is in the web site of the Bank), as well as for the repayment of mortgage loans provided by the Bank.
The loan will enable the beneficiaries to time make targeted expenses at any time for purposes direction intended by the social package by using the amount for their own and their family members’ health insurance, tuition payment, repayment of the mortgage loan and for organizing rest in the territory of RA and Nagorno Karabakh.
It takes two working days to provide the loan. The required documents for loan are the passport, the document of the acquisition of the appropriate service - a contract or an invoice.
The beneficiaries of the social package may receive additional information by visiting any branch
of the Bank, the loan's web page
or by calling 060 27 04 04.
ARDSHININVESTBANK LAUNCHES A NEW CAMPAIGN IN COOPERATION WITH THE INTERNATIONAL MONEY TRANSFER SYSTEMS
From March 1 to April 30, 2013 Ardshininvestbank is launching a campaign for the customers transferring or receiving money. In the framework of the campaign each 1000th customer sending or receiving money via Avers, IntelExpress, MoneyGram, Coinstar, UniStream, Ria and Bistraya pochta money transfer systems will win AMD 50,000 (fifty thousand).
In cooperation with its partner payment and settlement systems, Ardshininvestbank has been offering a variety of campaigns over the years, during which the customers have been awarded with money, plastic cards, travel tours, etc.
As the deputy chairman of the management board - the director of retail business Karapet Gevorgyan mentioned: "We always tend to provide our customers with high quality services. Using the services of Ardshininvestbank our Customers will get a nice surprise along with the high quality services. As more than one thousand transfers are operated daily in Ardshininvestbank, we will have a winner of the mentioned amount each day in the framework of the launching campaign".
Seven transfer systems are currently operating at the existing 55 branches and at the head office of Ardshininvestbank: Avers, IntelExpress, MoneyGram, Coinstar, UniStream, Ria and Bistraya Pochta.
ARDSHININVESTBANK STARTS TO SERVЕ SOCIAL PACKAGE ACCOUNTS АSSIGNED TO STATE EMPLOYEES WITH AN UNPRECEDENTED OFFER OF CREDITING
On February 11 “Ardshininvestbank” CJSC launches service of the social package accounts assigned to a number of state employees by the RA government.
In this important undertaking the Bank figures as a participant and in order to increase the impact of the program will give loans up to five times of the amount of the social package with low percentage, intended exclusively for payment of services available by that package.
This will give an opportunity to the beneficiaries to make target payments any time preferred, namely for health insurance, studies, rest or repayment of mortgage loan.
The service will be available at all 49 branches of “Ardshininvestbank” CJSC operating on the territory of RA.
ANOTHER AWARD TO ARDSHININVESTBANK
Today Yevgeni Bibin, the CEO of the "Electric Networks of Armenia" CJSC, handed out an award to Mher Grigoryan, wherein the Bank was recognized as the "Best financial Partner" of the Company.
ARDSHININVESTBANK CJSC SERVES NON-CASH OPERATIONS OF THE YEREVAN STATE UNIVERSITY
From now on tuition fees of the Yerevan State University (YSU) will be paid only in non-cash at any of the Ardshininvestbank’s operating 55 branches in Armenia and Nagorno-Karabakh into a deposit account 247010000906 free of charge.
Payments done at any of the Ardshininvestbank’s branches will be transferred to the main deposit account of the Yerevan State University. By paying tuition fees at the Ardshininvestbank CJSC students will have no need to submit their receipt of payment to the University. It will be sent to the University by the Bank. Payment can be done by any individual, mentioning such data as the student's first name, last name, middle name, learning system, faculty, specialty and course.
The employees of Yerevan State University will be paid their salaries in non-cash as well. As mentioned Karapet Gevorgyan, Deputy Chairman of the Management Board-Director of Retail Business,-“Being consistent to the policy adopted by the Bank, we aim to create the best options for customers’ financial service. Non-cash operations for Yerevan State University are one of these steps, which provide new opportunities for the University students and staff”.
ARDSHININVESTBANK HAS BEEN RECOGNIZED AS THE BEST PARTNER FINANCIAL INSTITUTION BY THE FINANCIAL SYSTEM MEDIATOR
On January 24, 2013, the Financial System Mediator of RA celebrated its fourth anniversary of professional activity. During these four years, the Office incessantly awarded diplomas to the best partners of the previous year.
It should be noted that “Ardshininvestbank” CJSC has been announced as the best partner by the results of 2012. Piruz Sargsyan, the Financial System Mediator presented the “Best Partner” certificate to the representative of “Arsdshininvestbank” CJSC. This approves the high level of efficient cooperation between “Ardshininvestbank” CJSC and Financial System Mediator.
The award is based on a number of criteria, especially the degree of cooperation during a general overview of the requirements (fast submission of the documents by the organization, their entirety and the willingness of the representative of the organization to assist in the investigation of the case), the outcome of the reconciliation of the examined cases. As well as amiable approach to those customers whose demand is subject to rejection.
In person of MherGrigoryan, Chairman of the Management Boardof “Ardshininvestbank” CJSC joins to all the congratulations and greetings towards the fourth anniversary of the Financial System Mediator and at the same time gives regards for professional work and high appreciation of the Bank.
We hope that the efficient cooperation between “Ardshininvestbank” CJSC and Financial System Mediator will be continuous.
TERMINATION OF TEMPORARY RELEASE OF PAYMENT CARDS
We inform you that the "Armenian Card" Processing Center, which provides the issuance and service of the Bank’s ArCa, Visa, MasterCard payment cards is launching works on changeover to new software in order to significantly improve the quality of the service of the cards.
On this occasion, starting from 29th of January the above-mentioned company announces a temporary service outage of the new cards issuance, cards replacement, as well as the installation of new POS terminals and ATM activation in points of trade and service.
Let us mention that the cards already existing in circulation and those serving equipment will continue operating. However, in the company’s regular work may occur some failures (so-called “transitional period” problems) until the end of the process of the changeover to a new software system, which are unavoidable during such large-scale projects.
We make an excuse for any inconvenience caused. For additional information, You are welcomed to call by the following numbers: 060270404 and 060270505.
ARDSHININVESTBANK PROVIDES TRADE FINANCE OF MAZDA AND SUZUKI CARS IMPORT TO ARMENIA
"Ardshininvestbank" CJSC continuously and actively finances the international trade contracts of its clients, using documentary and guarantee operations.
In order to execute the Bank's customer "Top Motors" LLC transactions, "Ardshininvestbank" CJSC periodically issues documentary letters of credit in favor of Japanese Mazda Corporation, which enables Mazda cars' importations to Armenia since Januray, 2013. The letters of credit issued by "Ardshininvestbank" CJSC are confirmed by primary foreign banks which allows Armenian importer to defer the payments under the contract on favorable terms.
In order to execute the Bank's customer "Royal Motors" LLC transactions as well, "Ardshininvestbank" CJSC has also guaranteed the regular importation of Japanese Suzuki car's newest models to Armenia.
"Ardshininvestbank" CJSC considers its customers' trade finance transactions to have a significant potential and, based on each individual deal's structure, offers optimal financial schemes, that allow importers to import goods with deferred payment without diverting their own working capital.
About "Top Motors" LLC and "Royal Motors" LLC
"Top Motors" LLC is the official representative of Japanese Mazda Corporation, and "Royal Motors" LLC is the official representative of Japanese Suzuki Corporation in Armenia. The companies activities include car import and sale, and the companies' high-qualified specialists provide Mazda and Suzuki cars with qualified technical service, which is available at specialized service center in Yerevan, Davitashen, 4 district, 26/1 (neighbouring to the car salon).
REOPENING OF “ARDSHININVESTBANK” CJSC MASHTOTS BRANCH
From now on “Ardshininvestbank” CJSC Mashtots branch will continue its activity at a newly renovated comfortable environment, which is located in 38/1, Shiraz Str., Ajapnyak District, Yerevan. The Branch has moved to more comfortable premises which meet today’s standards of good customer service by both its location and modern interior and exterior design as well as interior complied with Ardshininvestbank’s new brand standards.
In addition to the ongoing renovation works carried out in the branch a number of measures have been taken with the view of providing efficient and quick customer service and fully equipping and modernizing office and front desk.
In January 21, 2013 was the opening ceremony of the new branch with the participation of the Bank Management and authorities of the Ajapnyak district along with the branch customers and the district residents.
Congratulating the customers and the staff of the Mashtots branch with the opening of the branch, Deputy Chairman of the Management Board-Director of Retail Business Karapet Gevorgyan noted, that the opening of “Ardshininvestbank” CJSC Mashtots branch is the next step of the branch network development and implementation of complex measures towards modernization and which will create more convenient and actual environment for customer service.
During 2013 - 2015 branch network optimization the Bank will have a fully renovated branch network according to the standards adopted by the Bank.
ARDSHININVESTBANK HAS FINANCED THE IMPORT OF JOHN DEERE AGRICULTURAL MACHINERY TO ARMENIA
"Ardshininvestbank" CJSC provides a wide range of banking services, offering clients comprehensive solutions for foreign trade transactions, using documentary letters of credit and guarantee operations.
In December of 2012, "Ardshininvestbank" CJSC has financed the import of first set of agricultural equipment manufactured by John Deere – the world’s leading manufacturer of agricultural and road construction equipment. The financing has been provided by issuance of documentary letter of credit which has been post-financed for 5 years by German Landesbank Baden-Wurttemberg (LBBW) against German export insurance agency Euler Hermes Deutschland AG coverage. The agricultural equipment’s delivery will be finished by Spring, 2013, and the entire financing will be equal to approximately 1.4 mln. Euros.
The importing agricultural equipment has high productivity parameters and is transferred on long-term leasing conditions to Bank’s existing and potential clients - effectively developing agricultural companies.
"Ardshininvestbank" CJSC considers Armenian agricultural sector to have a significant potential and by financing of such projects contributes to development of middle business in this sector.
During the project realization "Ardshininvestbank" CJSC has strongly collaborated with "CARD Agroservice" CJSC – John Deere’s official representative in Armenia. "CARD Agroservice" CJSC has acted as the coordinator of negotiation process and has direct participation during the project’s further realization.
About John Deere
The company has been established in USA in 1837. Today, Deere & Company is one of the world’s most successful machinery producing companies and the biggest manufacturer of agricultural and road construction equipment. John Deere has been named a Thomson Reuters 2012 top 100 Global Innovator.
ARDSHININVESTBANK STARTS SERVICING AVERS INTERNATIONAL MONEY TRANSFER SYSTEM
Since January 9, 2013 Ardshininvestbank launched its cooperation with "AVERS" – a new international money transfer system.
This new system offers a possibility of making remittances to and from CIS countries in U.S. dollars, euros and Russian rubles. The commission fee to be paid for such transactions is 1.3% of the transferred amount, which will only be charged from the sender. The respective amount can be paid out immediately after its transfer.
By introducing this new service, Ardshininvestbank aims at giving its customers the opportunity of making fast and affordable international money transfers based on best available conditions in the market",- emphasized Mr. Karapet Gevorgyan, Deputy Chairman of Management Board, Director of Retail Business, speaking about the importance of this initiative.
Along with 6 other international money transfer systems, namely - MoneyGram, Coinstar, IntelExpress, Unistream, Ria, Fast Post served by Ardshininvestbank, “AVERS” is available in all its branches.