Arminfo.info



 Thursday, April 28 2016 06:44

Karina Melikyan

Central Bank of Armenia approves merger agreement of ProCredit Bank and INECOBANK

The Central Bank of Armenia has approved the merger agreement of ProCredit Bank and INECOBANK. The press office of INECOBANK told ArmInfo on April 28 that the Central Bank Board approved the merger agreement on April 26, 2016.    

The merger process was launched in December 2015 following the signing of the bilateral agreement on INECOBANK's acquisition of ProCredit Bank's 100% stake owned by ProCredit Holding.     

"The merger process of the two banks is nearing completion and starting from May 2016 the merged bank will function under the INECOBANK brand," Chairman of the Management Board of INECOBANK Taron Ganjalyan says, noting that INECOBANK has strengthened its team of professional specialists, extended its range of attractive products, and enhanced the efficiency of internal processes. "Demonstrating the leading indices in ROE and ROA for two years running, INECOBANK has also registered serious achievements in a number of directions following the acquisition of ProCredit Bank. The first result of the merger is the leading positions in micro- and SME lending, which has made it possible to enhance the quality of the services, including through expansion of the branch network. Due to the merger, the total capital of the Bank has considerably grown, exceeding the minimum threshold - over 12 bln AMD (versus the required 30 bln AMD effective on 1 Jan 2017)," he says. 

As of 13 Jan 2016, the shareholders of INECOBANK were Avetis Baloyan with a 27.4% stake (chairman of the Bank's Council), Karen Safaryan - 23.67% (member of the Council), EBRD - 22.7%, Deutsche Investitions und Entwicklungsgesellschaft - 9.58%, IFC - 7.1%, Vruyr Grigoryan - 3.81%, Aram Manukyan, Vardan Manukyan and Nune Gevorgyan - 1.29% each, Aghavni Zurnachyan and Alla Boyajyan - 0.92% each.

According to the Financial Rating of Armenian Banks by the Agency of Rating Marketing Information (ArmInfo), in 2015 INECOBANK increased its total capital by 56%, authorized capital - by 85.1%, assets - by 48.1%, lending - by 42%, liabilities - by 46.5%, time deposits - by 77.1%, net profit - 4.8 bln AMD (3rd position on the market), with 1.4 bln AMD of this amount registered in Q4 2015. In the loan book of the Bank, the share of lending to economy sectors was 71%, with 29% being retail lending. In 2015, the Bank increased the corporate lending by 56.8%, and retail lending - by 19.3%. In SME lending, INECOBANK rose to the 3rd position with 75.8 bln AMD (2-fold growth in 2015 due to merger with ProCredit Bank in Dec 2015). In terms of efficiency ratio, INECOBANK retained leadership in 2015, securing its ROE at 18.72% and ROA at 3.06%. (The average AMD/USD exchange rate was 483.75 AMD/$1).

As of 1 April 2016, INECOBANK held the 5th position in terms of total capital - 42.1 bln AMD, 6th position in terms of authorized capital (22.3 bln AMD), 7th position in terms of assets and liabilities - 226.8 bln AMD and 184.7 bln AMD, respectively, 5th position in terms of accumulated profit - 14.7 bln AMD, 2nd position in terms of net profit - 1.2 bln AMD (the average exchange rate was 480.79 AMD/$1).

Established in 1996, INECOBANK holds the leading positions in the banking system of Armenia in servicing individuals, as well as micro- and SME entities. It has over 200,000 individual customers and over 9,000 business clients. INECOBANK was the first Armenian bank to provide loans for acquisition of goods by installments, thereby stimulating the development of the consumer goods market. INECOBANK cooperates with more than 30 international organizations.

POST A COMMENT
Input digits     

News
Official voting results of Russian citizens in Armenia have been  announcedOfficial voting results of Russian citizens in Armenia have been  announced
With With "demarcation" going at this rate it will reach Yerevan:  Pashinyan points out to Tavush residents the need to quickly transfer  4 villages to Azerbaijan
Pashinyan meets with Tavush residents as promised earlier: Details of  meeting have not yet been providedPashinyan meets with Tavush residents as promised earlier: Details of  meeting have not yet been provided
Stoltenberg: Azerbaijani-Turkish armed forces close cooperation  strengthens Azerbaijan-NATO relationsStoltenberg: Azerbaijani-Turkish armed forces close cooperation  strengthens Azerbaijan-NATO relations
Armenia and Azerbaijan now have opportunity to achieve enduring peace  after years of conflict - NATO Sec GenArmenia and Azerbaijan now have opportunity to achieve enduring peace  after years of conflict - NATO Sec Gen
Armenian government`s intention to waive the claims filed against  Azerbaijan in international courts to cause irreparable damage to  Armenian people - human rights activists Armenian government`s intention to waive the claims filed against  Azerbaijan in international courts to cause irreparable damage to  Armenian people - human rights activists 
Ardshinbank cardholders can now enjoy a 10% cashback!Ardshinbank cardholders can now enjoy a 10% cashback!
Higher school buildings to be managed by international company -  premierHigher school buildings to be managed by international company -  premier
Armenian CEC rep observe U.S. primaries Armenian CEC rep observe U.S. primaries 
Contemporary Indian writer Arjun Krishna Lal`s book released in  Armenian Contemporary Indian writer Arjun Krishna Lal`s book released in  Armenian 
U.S reaffirms commitment to durable and dignified peace between  Azerbaijan and Armenia - Joe Biden U.S reaffirms commitment to durable and dignified peace between  Azerbaijan and Armenia - Joe Biden 
Deepening Armenian-Indian relations among Armenia`s foreign policy  priorities Deepening Armenian-Indian relations among Armenia`s foreign policy  priorities 
Moscow Moscow "testing" its relations with Yerevan
Armenia`s possible withdrawal from CSTO should take country`s real  needs into account - Russian foreign office rep Armenia`s possible withdrawal from CSTO should take country`s real  needs into account - Russian foreign office rep 
Region closer to peace than ever before - president of Azerbaijan Region closer to peace than ever before - president of Azerbaijan 
Three Sad Stories about FraudstersThree Sad Stories about Fraudsters
Armenia`s Deputy FM admits setback in Armenia-EU visa requirement  simplification Armenia`s Deputy FM admits setback in Armenia-EU visa requirement  simplification 
Opposition is denied access to draft peace treaty with Azerbaijan -  MPOpposition is denied access to draft peace treaty with Azerbaijan -  MP
Stoltenberg: NATO sought to support stronger partnerships with both  Armenia, Azerbaijan in 2023Stoltenberg: NATO sought to support stronger partnerships with both  Armenia, Azerbaijan in 2023
Peter Stano: Armenia may apply to join EUPeter Stano: Armenia may apply to join EU
Azerbaijanis destroy13th-century Armenian khachkar in village of  Tsar, Shaumyan region of occupied ArtsakhAzerbaijanis destroy13th-century Armenian khachkar in village of  Tsar, Shaumyan region of occupied Artsakh
Zatulin: Strengthening Armenian-EU relations to require  revision of  Armenia`s membership in EAEUZatulin: Strengthening Armenian-EU relations to require  revision of  Armenia`s membership in EAEU
Basic principles of settling Armenian-Azerbaijani relations remain  unchanged - MFABasic principles of settling Armenian-Azerbaijani relations remain  unchanged - MFA
Oppositionist: Armenian government has failed its program, including  through CSTOOppositionist: Armenian government has failed its program, including  through CSTO
Foreign Minister: We are not negotiating surrender of villages in  Tavush region to AzerbaijanForeign Minister: We are not negotiating surrender of villages in  Tavush region to Azerbaijan
Foreign office: Today, mutual understanding between Yerevan and Baku  regarding mutual recognition of territorial integrity is higher than  month agoForeign office: Today, mutual understanding between Yerevan and Baku  regarding mutual recognition of territorial integrity is higher than  month ago
Statue honoring Soghomon Tehlirian unveiled in MarseilleStatue honoring Soghomon Tehlirian unveiled in Marseille
Armenian Revolutionary Federation holds protest in front of Armenian  Consulate in Los AngelesArmenian Revolutionary Federation holds protest in front of Armenian  Consulate in Los Angeles
Azerbaijan-Iran conflict predestined - Stepan Danielyan Azerbaijan-Iran conflict predestined - Stepan Danielyan 
Turkmenistan and Austria aim to expand the boundaries of bilateral cooperationTurkmenistan and Austria aim to expand the boundaries of bilateral cooperation
Senior Russian diplomat discusses Ukraine, South Caucasus at talks in  AnkaraSenior Russian diplomat discusses Ukraine, South Caucasus at talks in  Ankara
Armenian, Artsakh political forces issue joint statement  Armenian, Artsakh political forces issue joint statement
Our main goal is to return to Artsakh soil - Andrei SergeenkoOur main goal is to return to Artsakh soil - Andrei Sergeenko
AAA disappointed with financial aid to Armenia next year AAA disappointed with financial aid to Armenia next year 
Armenia committed to work actively on implementation of provisions of  EU resolution - Armenia NA speaker Armenia committed to work actively on implementation of provisions of  EU resolution - Armenia NA speaker 
European Parliament approves resolution on closer ties between the EU and ArmeniaEuropean Parliament approves resolution on closer ties between the EU and Armenia
Armenia intends to bring its domestic legislation to conformity with  ICC requirementsArmenia intends to bring its domestic legislation to conformity with  ICC requirements
Artsakh information Center calls on mass media to refrain from unfounded accusations against Artsakh authoritiesArtsakh information Center calls on mass media to refrain from unfounded accusations against Artsakh authorities
4 villages in Tavush are not included in Armenia`s administrative  borders  - minister4 villages in Tavush are not included in Armenia`s administrative  borders  - minister
Defense Minister: Defense Minister: "Nobody gave the order not to open fire"
Ararat Mirzoyan, Louis Bono discuss current security situation in  South Caucasus Ararat Mirzoyan, Louis Bono discuss current security situation in  South Caucasus 
Kremlin: Moscow to clarify with Armenian side situation around  Yerevan`s withdrawal from CSTO Kremlin: Moscow to clarify with Armenian side situation around  Yerevan`s withdrawal from CSTO 
Armenia hosting Francophonie Days Armenia hosting Francophonie Days 
Armenia`s authorities realizing Aliyev`s agenda by starting border  delimitation from Tavush - Mane Tandilyan Armenia`s authorities realizing Aliyev`s agenda by starting border  delimitation from Tavush - Mane Tandilyan 
South Caucasus stability one of Turkiye`s prioritiesSouth Caucasus stability one of Turkiye`s priorities
Tragic events in Nagorno Karabakh made France develop security  cooperation with Armenia - ambassador Tragic events in Nagorno Karabakh made France develop security  cooperation with Armenia - ambassador 
EU applies anti-Russian EU applies anti-Russian "geopolitical optic" everywhere - Russian  official 
Deployment of the EU Civilian Mission in Armenia aimed at  establishing lasting peace and ensuring stability in region - Paruyr  HovhannisyanDeployment of the EU Civilian Mission in Armenia aimed at  establishing lasting peace and ensuring stability in region - Paruyr  Hovhannisyan
Crossroads of Peace project divorced from reality Crossroads of Peace project divorced from reality 
PM: Armenian border guards wto perform their duties at Zvartnots  airport from August 1PM: Armenian border guards wto perform their duties at Zvartnots  airport from August 1
Pashinyan on Arshak Karapetyan`s dismissal reason and his special  relations with MoscowPashinyan on Arshak Karapetyan`s dismissal reason and his special  relations with Moscow
Premier: Yerevan sees and feels Turkiye`s presence in  Armenia-Azerbaijan normalization process Premier: Yerevan sees and feels Turkiye`s presence in  Armenia-Azerbaijan normalization process 
At meeting with French Ambassador, head of Armenia faction, notes  importance of sanctioning Azerbaijan for atrocities in Artsakh At meeting with French Ambassador, head of Armenia faction, notes  importance of sanctioning Azerbaijan for atrocities in Artsakh 
Pashinyan: External forces also provoked main force organizing ethnic  cleansing in KarabakhPashinyan: External forces also provoked main force organizing ethnic  cleansing in Karabakh
Our political force will follow path of institutional solutions -  ex-mayor of Yerevan Our political force will follow path of institutional solutions -  ex-mayor of Yerevan 
Yerevan is ready to expand its agenda with BrusselsYerevan is ready to expand its agenda with Brussels
Soviet Encyclopedia `to help` Pashinyan; Armenia`s territory is less  than 29,800 sq. km.Soviet Encyclopedia `to help` Pashinyan; Armenia`s territory is less  than 29,800 sq. km.
Yerevan is working to return prisoners from Baku, although at times  it looks like `Sisyphean task` - PashinyanYerevan is working to return prisoners from Baku, although at times  it looks like `Sisyphean task` - Pashinyan
If Armenia`s borders are If Armenia`s borders are "red line" for CSTO, let them demonstrate it  - Pashinyan
Pashinyan specifies timeframe of Armenia`s new Constitution  referendum Pashinyan specifies timeframe of Armenia`s new Constitution  referendum 
Read more



Commented