Inecobank has announced AMD 7 billion profit for 2017, taking the first position by Return on Equity (ROE).

“The success of the bank is continuous: owing to the right strategy and its careful implementation, we have improvement almost in all positions. The most important achievement, of course, is the high level of profit. AMD 7bn net profit ensured the first position by ROE in the system,” said Inecobank Chief Financial Officer Hayk Voskanyan.

In 2017, the assets grew by 18% amounting AMD 278bn. The growth of the loan portfolio and high liquidity assets was 8% and 30% respectively.

The loan portfolio amounted AMD 173bn, including:

- Retail loan portfolio amounted AMD 57bn, increasing by 15.2% compared to 2016,
- Corporate loan portfolio amounted AMD 121bn, increasing by 4% compared to 2016.

The ratio of liquid assets to total assets was 29%.

Liabilities increased by 19% over the beginning of the year, amounting AMD 230 bn. Customer deposits have increased by 28%; as a result, the share in total liabilities was 61%.

By the end of 2017, customer deposits made AMD 141bn, 75% out of which were from individuals.

“Our efforts to increase effectiveness provide continuous results. During 2017, the cost/income ratio declined by 5.6 percentage points, reaching 34.2%.

The bank continues the active use of new technologies, which had its positive effect on various financial indicators. In 2017, we upgraded and improved credit scoring system and as a result, our indicator of non-performing loans improved by 1.1 percentage points compared to previous year, the coverage ratio of non-performing loans increased to 62%.

We comply with all the prudential standards set by the Central Bank, ensuring internal buffers as well. The equity of Inecobank totaled AMD 48bn by the end of 2017, which ensured 14.6% capital adequacy ratio, compared to 12% of the CBA requirement.

The bank’s indicators allow us to deal with all the unexpected developments in the market,” added Hayk Voskanyan.

The net interest income increased by 13.5% compared to year-end 2016, amounting AMD 15.7bn. The amount of total operating income has increased by 12.4%, reaching AMD 19.9bn.

The impairment loss has improved by 9.6% amounting AMD 4.1bn. As a result, the credit risk improved by 0.5 percentage points, amounting 2.4%.