Yerevan /Mediamax/. “Armeconombank” managed to overcome both the political and the financial-economic crisis and will move forward with confidence, Chairman of the bank’s Board of Directors David Sukiasyan stated.

Mediamax reports that, speaking at the general annual meeting of “Armeconombank” shareholders in Yerevan today, David Sukiasyan thanked the shareholders for “not going into panic in crisis conditions and for managing to jointly direct efforts to preserving the quality of the bank’s credit portfolio”.

Talking about the indices of the bank following the results of 2008, David Sukiasyan informed that the bank’s assets as compared to 2007, reduced by 0.7%, making 49bln 913.1mln AMD.

“Correlation of the high-liquidity assets and poste restante assets of the bank following the results of 2008 made 120-130%, while the minimal level of the given index, allowed by the Central Bank of Armenia, makes 60%”, David Sukiasyan stated, accounting this for the reserved credit policy of the bank as a results of the global financial-economic crisis’ influence on the country. As a result, according to David Sukiasyan, the credit portfolio of the bank in 2008 reduced by 3.1%, making 27bln 059.4mln AMD.

According to David Sukiasyan, the share of overdue and prolonged credits following the results of last year made respectively 0.31% and 0.66%. He also informed that “Armeconombank” concluded the year of 2008 with profit of 517.8mln AMD. The liabilities of the bank following the results of the last year reduced by 1.3%, making 41bln 278.4mln AMD.

Touching upon the liabilities of the bank for customers, Chairman of the bank’s Board of Directors informed that following the results of 2008, the volume of the population’s time deposits in the bank made about 5bln AMD, having cut down, as compared to 2007, for 0.2bln. Following the results of the first five months of 2009, the time deposits of the population in the bank increased for 0.4bln AMD. The total capital of the bank, according to him, last year increased by 2.6%, making 8bln 634.7mln AMD.

David Sukiasyan stated that in 2008, the number of the bank’s customers reduced from 62.7 thousands to 53 thousands, but already in 2009, due to new services of the bank, the number of customers increased for 18 thousands.

Talking about the activity of the bank following the results of the first five months, 2009, David Sukiasyan stated that if in 2008 consumer credits prevailed in the structure of the credit portfolio, this year 60% of the credit portfolio make business credits, and 40% - consumer credits. He expressed opinion that by the end of the year the specific weight of business credits in the credit portfolio will make 65-70%.

Chairman of “Armeconombank” Board of Directors also informed on reconsidering the bank’s policy towards expanding crediting, expressing opinion that by the end of 2009, the credit portfolio of the bank will increase up to 28-30bln AMD.

Chief Accountant of the bank Vahram Babayan informed that as a result of the growth of absolute cost of the aggregate capital of “Armeconombank”, the book cost of its shares increased following the results of 2008 for 231 AMD, making 9251,4 AMD, while their nominal value makes 2500 AMD. Vahram Babayan informed on the decision of the bank to pay out dividends to shareholders at the volume of 10% of the nominal value of shares (250 AMD per each share).

Chairman of European Bank for Reconstruction and Development (EBRD) in “Armeconombank” Board Irakli Mekvabishvili noted the importance of the fact that the bank pays out dividends to shareholders in conditions of the global crisis, noting that EBRD will continue supporting “Armeconombank” in improving risks management, preservation of the volume of assets and the quality of the credit portfolio. He also noted the necessity to optimize the expenses of the bank and pay greater attention to the quality of its activity.

The Deputy Chairman of CB Vache Gabrielyan, who was present at the annual meeting of shareholders, noted the important place and the backbone role of “Armeconombank” in the banking sector of Armenia, noting that “the payment of dividends by the bank evidences its stable development”.