ARARATBANK to become a powerful player on market of classic, digital  and investment banking in Armenia 

ArmInfo.In the midterm perspective ARARATBANK will become a powerful player on the Classic, Digital and Investment banking in Armenia, Chairman of the Bank Board Ashot Osipyan stated at the meeting with journalists. He noted that  further development of the bank in the abovementioned three  directions is envisaged by the new strategic program approved by the  shareholders.  To recall, the bank is currently in the process of  acquisition of Armenian Development Bank, the Central Bank of Armenia  has already given its agreement on the issue.

The deal will  significantly strengthen the bank's positions on the market and its  competitiveness, will increase the amount of transactions and will  create favorable conditions for active introduction of new products  and technologies. 

Osipyan informed that despite unfavorable economic climate the bank  as of today plays a significant role in lending to business and is  actively involved in project financing in the fields of construction  and small industrial production. Such success according to Osipyan  became possible due to significant strengthening of the risk  management system, which directly influences high level of quality of  the bank's credit portfolio. Talking about technological development  of the bank Osipyan emphasized that although the bank has a great  number of branches it intends to take the path of digital improvement  developing internet banking, mobile banking and the network of  cash-in ATMS already installed by the bank. As for expanding  investment activities of ARARATBANK its head mentioned serious  experience the bank has in this field. Besides, the bank is an agent  of placement of state securities and has the largest bond issues in  the banking sector of the country. The bank intends to significantly  expand the functions of underwriter and market maker on the stock  market of the country. He agreed with the opinion that it is  necessary to intensively develop the stock market of the country  aimed at attracting capital for real sector of economy which  seriously needs development. 

Answering to journalists' questions Osipyan emphasized that due to  drop of economic activity the country is facing a very serious  situation. "On the one hand we see a developed banking system, on the  other poorly developed real sector, part of which operates in  shadow". This circumstance raises concerns and the question arises  who will be stronger. That is why the real sector should be developed  first of all by revising tax policy, reducing tax burden in order to  create an environment ensuring fair competition in real sector. He  expressed hope that the government will be able to solve these  serious problems and next year business climate will be improved in  the country, which in turn will significantly impact credit market  and will allow the banks financing economy more actively. According  to him in 2017 high competitive climate will be maintained in the  banking sector and a lot of banks are revising their strategy in  order to remain competitive on the market. "It is due to this that  economic entities can receive cheap but qualitative banking  services'', Osipyan stressed. 

To recall, a month ago ARARATBANK issued shares aiming to replenish  capital for meeting the new standard to come into force from 2017 and  as a result ensured total capital amounting to 33 bln drams. 

According to the Financial Rating of Armenian Banks by ArmInfo, as of  1 Oct 2016, the assets of ARARATBANK OJSC amounted to 137.5 bln AMD  (up 9.3% versus a year before), general obligations - 113.4 bln AMD  (up 9.7%), accumulated profit - 12.4 bln AMD, lending - 70 bln AMD  (up 4.7%), time deposits - 22.5 bln AMD, call liabilities - 28.7 bln  AMD, investments in government bonds - 26 bln AMD (up 2.3-fold). In  Jan-Sept 2016, the net profit of ARARATBANK amounted to 732.8 mln  AMD, including 406.5 mln AMD in Q3.  Following the recent issue of  shares in November, in the structure of the shareholders' capital  72.73% belongs to Flash oil trader, 18.14% - to the EBRD, 8.58% - to  the Rural Impulse Fund II, with the remaining 0.55% distributed among  82 minority shareholders. ARARATBANK has 54 branches (4th position):   27 in Yerevan, 26 in the provinces and 1 in Nagorno-Karabakh