VTB Bank (Armenia) profits in five years surge by 478.3%: CEO
19.05.2011,
00:28
Russian-owned VTB Bank’s (Armenia) profits over the five years of its operations in Armenia have surged by 478.3%, its CEO Valery Ovsyannikov said to a news conference today at Novosti-Armenian international press center.
YEREVAN, May 18. / ARKA /. Russian-owned VTB Bank’s (Armenia) profits over the five years of its operations in Armenia have surged by 478.3%, its CEO Valery Ovsyannikov said to a news conference today at Novosti-Armenian international press center.
"This tells that five years ago the bank entered the local market with a serious intention to win a good position and offer the entire range of products and financial services which are in demand here," he said.
In comments on return on equity (ROE) dynamics Ovsyannikov said a decline in this indicator was seen since 2005 due to difficult situation of the bank and ineffectively operating branch network.
According to him, significant changes in the management of the bank, in business processes, procedures, and the branch network were made in 2007 resulting in improved income indicators in 2007-2008, but the late 2008 and 2009 were difficult years due to financial and economic crisis and earnings deteriorated, but the bank remained in a positive zone, and even managed to earn profits in 2009.
Speaking about five-year development dynamic, Ovsyannikov said that during this period of time the bank achieved growth in assets, total capital, loan portfolio and liabilities. For example, assets in 2010 grew by 307% if compared with 2005, the total capital grew by 336.1%, share capital by 184.8%, credit investments by 424.4%, total liabilities by 299.8% and total customer deposits by 221.6%.
As for the results of 2010, Ovsyannikov said in late December bank's total assets amounted to 127.5 billion drams, having increased in comparison with the end of 2009 by 7,2%, while loan portfolio amounted to 86.6 billion drams growing by 21.1%.
"The most important thing is net income indicator. We worked hard in 2010 earning 4.4 billion AMD in net profit. The growth was 406.6% and by the size of net profits we were second”, he said.
"We are present in virtually all industries, primarily in mining metallurgy, energy, telecommunications, food processing, transportation, construction,’ the banker said.
Bank VTB (Armenia) is owned by Russian Bank VTB. It has 68 branches across Armenia, 24 in Yerevan and 44 outside it. It also operates 59 ATMs and 400 POS terminals.($1 – 373.74 drams). -0-
"This tells that five years ago the bank entered the local market with a serious intention to win a good position and offer the entire range of products and financial services which are in demand here," he said.
In comments on return on equity (ROE) dynamics Ovsyannikov said a decline in this indicator was seen since 2005 due to difficult situation of the bank and ineffectively operating branch network.
According to him, significant changes in the management of the bank, in business processes, procedures, and the branch network were made in 2007 resulting in improved income indicators in 2007-2008, but the late 2008 and 2009 were difficult years due to financial and economic crisis and earnings deteriorated, but the bank remained in a positive zone, and even managed to earn profits in 2009.
Speaking about five-year development dynamic, Ovsyannikov said that during this period of time the bank achieved growth in assets, total capital, loan portfolio and liabilities. For example, assets in 2010 grew by 307% if compared with 2005, the total capital grew by 336.1%, share capital by 184.8%, credit investments by 424.4%, total liabilities by 299.8% and total customer deposits by 221.6%.
As for the results of 2010, Ovsyannikov said in late December bank's total assets amounted to 127.5 billion drams, having increased in comparison with the end of 2009 by 7,2%, while loan portfolio amounted to 86.6 billion drams growing by 21.1%.
"The most important thing is net income indicator. We worked hard in 2010 earning 4.4 billion AMD in net profit. The growth was 406.6% and by the size of net profits we were second”, he said.
"We are present in virtually all industries, primarily in mining metallurgy, energy, telecommunications, food processing, transportation, construction,’ the banker said.
Bank VTB (Armenia) is owned by Russian Bank VTB. It has 68 branches across Armenia, 24 in Yerevan and 44 outside it. It also operates 59 ATMs and 400 POS terminals.($1 – 373.74 drams). -0-
