Ardshininvestbank publishes financial results for Jan-Sept, 2013

Ardshininvestbank published its financial results for nine months of the year on 15th October, 2013. In spite of the growing competition in Armenian banking services market, the bank continued the sustainable growth of its main financial indicators.

The dynamics of the bank’s main financial indicators compared to the same period of 2012 according to the latest statement on comprehensive financial results is as follows:

Cost to income ratio (CIR) has improved by 2.6% reaching 45.1%;

Net profit was 27.6% higher, reaching AMD 4.1 billion;

Net interest income was 29.8% higher, reaching AMD 9.6 billion;

Net commission income was 39.8% higher, reaching AMD 2.9 billion;

Net operating income was 28.8% higher, reaching AMD 14.2 billion.

During nine months of 2013, net profit of the bank totaled to AMD 4.1 billion, exceeding the same indicator for the previous year by over 1.3 times and registering the highest growth rate in the bank’s history.

Net interest income for nine months of the year amounted to AMD 9.6 billion, which is 29.8% higher than the indicator of the same period of the last year. Net commission income increased by 39.8% compared to the same period of the previous year, making AMD 2.9 billion. Net operating income rose by 28.8% over the same indicator of the last year, totaling to AMD 14.2 billion.

By 1^st October, 2013 the bank’s cost to income ratio (CIR) - one of the main indicators of its profitability, was at 45.1%.

The bank’s total assets as of 1st October, 2013 amounted to around AMD 262 billion, which equals to 31.9% growth since the beginning of the year.

As a result, the total client loan portfolio made AMD 166.1 billion by 1st October, 2013, reflecting a 23.5% increase since the end of 2012. The retail loan portfolio reached a new level of AMD 50.3 billion, growing by 13% and making 30% share in overall loan portfolio. The volume of loans to enterprises grew by 28.7% during the first 9 months and reached AMD 115.8 billion, making 70% of the bank’s total loan portfolio. The share of loans with above 90 days overdue payments (NPL) in overall loan portfolio was merely 2.7% as of 1st October, 2013.

The bank’s total capital - the main indicator of its stability, increased by 12.7% making AMD 40.4 billion, whereas profitability indicators - return on average equity (ROAE) and return on average assets (ROAA) made 14.5% and 2.4% respectively.

In the field of strengthening its collaboration with international financial institutions (IFIs), during the 9 months of 2013, the bank was able to attract additional resources of USD 5 million from World Business Capital, USD 6 million from Asian Development bank and EUR 1.8 million from Atlantic Forfeiting.

As of 1^st October, 2013 the bank’s client base comprised of 9,640 legal entities and 241,913 individuals, in aggregate 36% higher than at the end of year 2012. On the same date, the bank’s sales network comprised of 308 service points (including ATMs and POS-terminals).

Meanwhile, the sustainable growth of the bank has recently been affirmed by Moody’s Investors Service, which raised the outlook of the bank’s ratings to “stable”.

The complete version of Ardshininvestbank CJSC’s financial reports is available here.