Fitch Upgrades ACBA Bank to 'BB-'; Outlook Stable
YEREVAN, February 9. /ARKA/. Fitch Ratings has upgraded ACBA Bank Open Joint-Stock Company's (ACBA) Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+', and the bank's Viability Rating (VR) to 'bb-' from 'b+'.
The Outlook is Stable. A full list of rating actions is below. Fitch said the upgrade reflects sustainable, considerable improvements in the bank's operating profitability and capitalisation for 2022-2023.
According to Fitch Ratings, this is primarily driven by Armenia's buoyant economic growth, a strengthened sovereign credit profile, and resilient local currency, aided by the positive effects of migration from Russia.
Fitch forecasts that Acba Bank's profitability will increase due to a favorable business environment.
Acba Bank recorded significant results in 2023:
- A profit of over AMD 28.6 billion, and unprecedentedly high return on assets and return on equity of 3.9% and 23.6%, respectively;
- Deposit portfolio growth of 18.6%'
- Growth in the number of cards by approximately 35,300 - the first position in the market'
- Increase in the volume of transactions made via POS terminals by about 44% compared to the previous comparable period'
- Dividends amounting to AMD 4.4 bln were paid to the shareholders.
Besides, the bank's assets increased by 17.8%, capital - by 21.8%.
The bank is controlled by the Central Bank of Armenia. -0-
