ARMECONOMBANK PLANS TO MAKE PROFIT OF 1 BLN 200 MLN DRAMS THIS YEAR
YEREVAN, JUNE 4, NOYAN TAPAN. 2004 was a successful year for
Armeconombank – the bank achieved a growth in all indices. Executive
Director of the bank Ashot Osipian stated this at the annual meeting
of Armeconombank shareholders on June 3. According to him, in the year
under review, the bank assets grew by 45.3% to 27.5 bln drams (about
61.3 mln USD). Last year’s credit investments of the bank increased
by 38.2% to 12.1 bln drams, while on-call deposits by 71.3% to 11.5
bln drams. In 2004, the profit rose by 30.4% on 2003 and made about
1.1 bln drams. Thanks to this, the 1,450 shareholders of the bank
will be paid dividents of 250 drams per share or 10% of the annual
profitablity this year too. According to A. Osipian, the nominal value
of a share is currently 2,500 drams, its accounting value – 5,826
drams. The market value of shares has not been decided yet. According
to Executive Director, now Armeconombank has 27.5 thousand credit
recipients and 2 thousand depositors. The bank’s policy of low rates
accounts for the small number of depositors – the interest rates
on deposits were reduced twofold in 2004. A. Osipian said that the
bank mainly attracts funds from international organizations. It is
envisaged to increase the amount of credit resources to 14 bln drams
in 2005. This year the bank also plans a 60% increase in transfers
and a profit of 1.2 bln drams. Armeconombank will take an active
part in the mortgage market. According to A. Osipian, the bank has
provided mortgage loans of about 3 mln USD since 2004. At present,
the mortgage loans provided by the bank carry an annual interest rate
of 12-14% and are repayable in 5-7 years.