In the nearest future ARARATBANK will hold additional closed issue of stocks, as a result of which the amount of total capital will increase by 8.5 bln drams from the current 22.7 bln drams. Thus, the bank will meet the minimal capital requirement, which according to the CBA's decision must not be less than 30 bln drams starting from 2017. The decision on additional issue of stocks was made on June 17 during the general meeting of the bank's shareholders on results of 2015. It was decided not to distribute the net profit ensured for 2015 amounted to 941.7 mln drams and to use it for the capital replenishment purposes.
The Chairman of ARATABANK Executive Board Ashot Osipyan informed that in the current year the bank will continue stable development introducing new banking technologies. As of today the bank has 12% market share of fast monetary transfers in Armenia, 20% growth was ensured in terms of utility payments, the client base grew by 6% within the year, the number of active banking cards grew by 4%, new sale options with active use of such social networks as Facebook and Instagram were used. In 2015 the bank introduced mobile-banking system and increased the operations via virtual operation systems to 120 mln drams. The bank proceeded with introduction of NFC (Near Field Communication) technology for servicing clients by ApplePay and SamsungPay.
Osipyan mentioned that the bank intends to significantly strengthen risk-management based on Basel III principles. New evaluation method will be applied to assess the operation of the bank branches basing not on the generated profit but on the overall level of work efficiency. The bank attaches great importance to the task of transition to Basel III from Basel II. It is a transition to new coefficient standards of liquidity, short-term liquidity and coefficient of sustainable financing. The system of operational risk management based on statistics will be reinforced. New principles for assessing credit risks are being introduced, in line with the best international practice. Osipyan considered timely introduction of Know your customer Basel standard aimed at raising the level of partnership with foreign counterparts. New standards are being implemented in the work of the bank's credit unit so called standard of responsible lending, in which the principle of the lending effectiveness is the most important factor. The bank will continue active lending to SME and implementing programs on trade financing. Much importance will be attached to the further development of mortgage lending, factoring services provided in cooperation with the EBRD, as well as leasing development. Osipyan put special emphasis on the fact that the bank successfully attracts non- expensive dram funding, due to which it can provide the clients with loans in drams in order not to burden them with currency risks.
The CEO of the bank stressed that the "financial supermarket" concept adopted several years ago has proved itself worth. Along with traditional services and products the clients are given a wide choice in the fields of insurance, investments, financial and juridical consultations. ARARATBANK for the first time on the financial market will launch publication of analytical data on macroeconomic and investment environment in Armenia and in the main partner countries. The bank will continue regularly monitor the level of the clients' satisfaction with its services, which as of today exceeds 80% and will try to ensure 100% result.
According to the Financial Rating of Armenian Banks prepared by ArmInfo News Agency, ARARATBANK'S assets totaled 132.6 bln AMD ($274.2 mln) as of January 1, 2016. In the structure of assets, the credit exposures and other loans made up 71.5 bln AMD ($147.8 mln) or 54%, ensuring the bank's place in top 10. ROA and ROE were 0.7% and 4.3% as of 2015. European Bank for Reconstruction and Development holds 25%+1 of the bank's shares, 64.24% of the shares belong to Flash petrol trader, and less than 10% Rural Impulse Fund II.