Inecobank announced its financial results for 1H 2017 (IFRS-based, unaudited) today, reporting Net profit of AMD 3.6bn (up by 81.3% year-over-year) and ROE of 15.8%.

“The bank has an excellent performance in 1H 2017, successfully maintaining its leadership position in the market by both Net profit and ROE,” the bank stated.

Total assets of Inecobank reached AMD 240bn, recording YTD growth of 1.6%. The gross loan portfolio is AMD 171bn, growing by 2.9%.

In particular, Retail loan portfolio grew by 6.1%, reaching AMD 63bn, while the Corporate loans maintained the YE 2016 level, amounting to AMD 108bln.  

The Liquidity Ratio (Liquid Assets divided by Total Assets) stood at 26.6% as of 30 June 2017, down from 27.2% as of the beginning of the year.

Total Liabilities reached AMD 194bn, recording YTD growth of 0.7%.

“The bank has a well-diversified liabilities structure with 55.7% of liabilities being customer deposits and 27.6% loans received from IFI’s,” the bank noted.

Inecobank’s Total customer deposits stand at AMD 108bn as of 1H 2017. 77.6% of customer deposits are retail deposits, while 22.4% are corporate and institutional deposits.   

The bank also informed that the asset quality is improving, having reached the level of 2014-2015. The NPL ratio is 6.0% in 1H 2017, improving by 0.2 percentage points from 1H 2016. The NPL coverage ratio stands at 60.4%.

Total Shareholders’ Equity as at 30 June 2017 equaled AMD 46bn, up by 5.6% from YE 2016.

“The Capital Adequacy Ratio as per the current CBA normative stands at 15.4%. All Armenian banks are required to be compliant with a minimum normative capital of AMD 30bn and capital adequacy ratio of 12%. The Bank was compliant, as of 30 June 2017, with all prudential ratios,” Inecobank stated.

Net Interest Income increased in 1H 2017 by 12.7% y-o-y to AMD 7.5bn. Total Operating Income in 1H 2017 reached AMD 9bn, an increase of 10.4% y-o-y.

“Our cost-cutting efforts resulted in 9.5 percentage point decrease in the Cost/Income Ratio, from 39.8% in YE 2016 to 30.4% in 1H 2017. Total operating Costs reached AMD 2.8bn a 16.1% y-o-y decrease,” the bank added.

Credit impairment losses improved by 11.8% y-o-y and reached AMD 2.1bn in 1H 2017. Cost of credit risk ratio stands at 2.5%, a 0.5 percentage point decrease y-o-y.

Inecobank’s net-profit in 1H 2017 is AMD 3.6bn, a growth of 81.3% y-o-y.