Interview of the Chairman of “Prometey Bank” Board of Directors Emil Soghomonyan to Mediamax Agency

- From the beginning of the year, “Prometey Bank” has replenished its authorized capital stock twice, as a result of which the structure of the bank shareholders changed: from now on, the biggest shareholder is Russian resident “Prometey City”. Would you, please, present your Russian partner?

- Negotiations on replenishing the authorized capital stock launched back in December, 2010, and following the results of those negotiations, the authorized capital stock of our bank doubled in the first quarter, 2011, from AMD 7.2bln to AMD 14.4bln due to participation of the Russian “Prometey-City” Company.

Our partnership with “Prometey-City” was not random. Shareholders of “Prometey-City” are at the same time shareholders of the Armenian “Zakneftegazstroy-Prometey” OJSC, which is the main founder of “Prometey Bank”. Besides, shareholder of our bank Vazgen Gevorgyan (non-resident individual) is a big shareholder in the above-mentioned two companies.

 “Prometey-City” specializes in tourism and hotel business, working in Russian, Armenian and European markets. The company owns hotel complexes and rest houses.

- How will attraction of resources influence the bank’s credit portfolio?

- The very fact of doubling the authorized capital stock is a symbolic event not only for our bank, but also for the entire financial-credit market of Armenia.

Today, together with the undivided profit, the aggregate capital of the bank makes about AMD 17.4bln. And due to the long-term subsidized credit of the Central Bank (CB) at the volume of AMD 3.6bln, the aggregate capital of the bank will make AMD 20bln in the nearest future.

It is natural that those means should contribute to increase of the bank’s credit portfolio. Only in 4 months, 2011, the bank’s credit portfolio increased approximately by AMD 5bln. This is quite a serious index here, since only in 4-5 months, the growth of the credit portfolio made 33%.

Today, we have the chance to meet serious credit applications of a large number of corporate customers. I should note that the average size of our recent business credits is in the range of USD 4mln.

According to the strategic program for 2011, we plan to make our credit portfolio reach AMD 25bln by the end of the year. Moreover, by 2013, we intend to enter the list of top ten banks as to the credit portfolio, making it reach AMD 35bln.

Using the occasion, I also want to note that this year we are expanding the bank’s deposit policy. From known on, the bank is registering deposits not only in the head office, but also in the branch network.

- Does the bank plan to stir up its activity in retail banking services’ segment?

- To more rationally distribute our means, the bank has made a decision and has carried out the corresponding work on entering the market of consumer crediting for purchase of goods by installments. We already have a number of agreements with a number of trade outlets, which realize sales of household appliances and cell phones.

I want to highlight that the bank has approved a simplified interest rate for the mentioned credits without any commission fees. In particular, the annual interest rate for purchasing goods by installment, depending on the price category of the particular good, makes 18% or 20%.

- How do the contacts with foreign partners develop and do you intend to continue cooperation with Swiss E.F.G. Zurich Bank on bond placement this year?

- Our cooperation with E.F.G. Zurich Bank is continuous; negotiations are underway today as well. The Swiss partner demonstrates interest towards the bank’s bonds, the only subject of negotiations is the interest rate, which we suggest to reduce. I think that in the nearest future we will come to common grounds.  

In any case, I am sure that capital replenishment is another step towards enhancing and increasing trust towards our bank by our foreign partner banks.

A proof of what has been said is the credit of German BAADER Investment Bank at the volume of EUR 2mln we received recently. It will allow us being more confident in implementing our plans in the capital market.

As it is known, we have introduced new investment tools, which give the bank’s customers the chance to invest means in numerous securities, which have been listed on leading exchanges worldwide.

- Do you believe that the time, when it will be possible to inspire customers with such offers, has come or is near?

- This time has not only come, but has passed too: today the Armenian capital market should take resolute steps to catch up. If a conservative banker with many years’ professional work experience says this, believe me, this is true.

Concerning the results, as to introduced investment tools, the bank has already started receiving dividends, in particular, at the expense of one recent deal, we received profit at the volume of EUR 13 thousand.