In 2016 Ardshinbank increased its net profit 2.3-fold to $9.4 mln and retained its position among TOP-3
ArmInfo. In 2016 Ardshinbank increased its net profit 2.3-fold to 4.6 bln AMD ($9.4 mln) and retained its position among the TOP-3. Due to this, the accumulated profit of the Bank grew by 16.8% to 29.9 bln AMD, increasing the total capital by 11.6% to 54 bln AMD.
According to ArmInfo's Express Ranking of Armenian Banks, Ardshinbank ensured such growth in net profit due to the considerable increase in lending and investments in government bonds. In particular, the loan book rose by 23% to 337.7 bln AMD, and the investments in government bonds - by 71.4% to 37.7 bln. Along with this, the Bank increased the disposable funds by 54.6% to 106.8 bln, and decreased the lending to banks and financial organizations 3.6-fold to 4.8 bln AMD. The assets of the Bank grew by 26% to 504.7 bln AMD.
In 2016, Ardshinbank's liabilities grew by 28% to 450.7 bln AMD due to the fact that the customers' time deposits and call liabilities of the customers rose by 22.9% to 250.8 bln AMD and the funds attracted from the banks and other financial organizations grew by 62.4% to 147.3 bln AMD. In the meantime, the funds attracted from the Bank's own corporate bonds dropped by 10.5% to 49.5 bln AMD.
In the total capital of Ardshinbank, the share of accumulated profit rose from 52.8% to 55.4% in 2016, and the share of authorized capital dropped from 39.3% to 36.3%. In 2014, the authorized capital of the Bank grew by 26.6% to 19.6 bln AMD (including the share premium), and this level was retained in the following two years. In 2016, the total regulatory capital of the Bank grew by 13% to 45.1 bln AMD, which is by 50.3% higher than the minimum capital standard (30 bln AMD), which came into effect on 1 Jan 2017. By 1 Jan 2017, the capital adequacy ratio made up 13.06% (N1, versus the required min 12%), total liquidity ratio - 26.28% (N2/1, versus the required min 15%), and the current liquidity ratio - 176.44% (N2/2, versus the required min 60%) against 13.25%, 23.97% and 179.61% by 1 Jan 2016.
To note, Ardshinbank CJSC (formerly called Ardshininvestbank before November 2014) was founded in 2003. Following the merger with Areximbank-Gazprombank Group in December 2016, now Ardshinbank has 72 branches (56 of its own and 16 Areximbank branches) and a representation in Paris. Due to the merger, Ardshinbank has become a leader in terms of the branch network in 2017. By the key balance sheet parameters, Ardshinbank is among the Top-3 banks of Armenia. The shareholders of Ardshinbank are the Center of Business Investments LLC - 97.52%, Aram Andreasyan - 1.57%, Karen Safaryan (RF) - 0.37%, Rudik Mkrtumyan and Khachik Zakaryan - 0.27% each, and International Business Center CJSC JV - 0.0005%.