ARARATBANK started payment of dividends to shareholders

ArmInfo. On June 28, ARARATBANK  OJSC started payment of dividends to shareholders, directing AMD 5  billion ($12.7 million) from the net profit of AMD 13.2 billion  ($33.5 million) received for 2022. The remaining AMD 8.2 billion  ($20.8 million) remain at the disposal of the Bank and will be  directed to its development. This decision was made at the General  Annual Meeting of ARARATBANK Shareholders held on June 27.

As the Bank explained to ArmInfo, dividends in the amount of 53.3%  per one ordinary registered share will be paid out of the amount  provided for these purposes (against 34.8% in 2021 and 4.65% in  2012). It should be noted that ARARATBANK resumed paying dividends  based on the results of 2021 (from accumulated profit), having  previously suspended this process for 7 years, since at that time a  decision was made to issue dividends to shareholders based on the  results of 2013 in the amount of 4.7% for the last time per share.

ARARATBANK also reported that earnings (dividend) per share (EPS) in  2022 amounted to AMD 7031 (against AMD 1704 in 2021 and AMD 2762 in  2012). As a result of the growth of capital in 2012-2022 by almost  3-fold, the book value of one share also increased significantly  (2.2-fold), amounting to AMD 28.014 thousand at the end of 2022  (against AMD 12.883 thousand in 2012 and AMD 23.071 thousand in  2021), ARARATBANK - DIVIDENDS - PROFIT - PAYMENTS with a y-o-y growth  of 21.4%.

The share capital of the bank is represented by 1873375 ordinary  registered shares, each with a nominal value of AMD 5 thousand. In Q4  2022, the bank issued shares in the amount of AMD 2.8 billion,  increasing the authorized capital by January 1, 2023 to AMD 19.6  billion. As a result, a high double-digit growth of the total capital  was also recorded - up to AMD 52.5 billion, including due to a  significant increase in profits in the reporting year.

As a result of the additional issue of shares in Q4 2022, the shares  of the majority shareholders of ARARATBANK OJSC changed as follows:  the share of Flash LLC (one of the largest oil traders in Armenia)  decreased from 72.73% to 68.36%, the share of Barsegh Beglaryan (the  well-known Entrepreneur, president of "Flash" LLC) - decreased from  22.62% to 21.37%, while the share of the indirect holder in the  person of Sanasar Beglaryan, on the contrary, increased from 4.29% to  9.94%. In total, the authorized capital of "ARARATBANK" OJSC is  represented by 73 shareholders - residents of the Republic of  Armenia, of which 72 are individuals.

According to the 2022 annual indicators of ARARATBANK, over the past  year, the bank's total assets increased by 32.0% and stood at AMD  357,510 million, while the average growth rate of the past ten years  stood at 12.1% (since 2012). The share of earning assets amounted to  72.5%. Total liabilities increased by 32.5% compared to 2021 and  stood at AMD 305,031 million, while the average growth rate since  2012 stood at 12.1%.

Total capital increased by 29.2% in 2022, with a ten-year growth of  19.3%. The bank's net profit increased almost 8-fold in 2022,  reaching AMD 13.2 billion. ARARATBANK efficiency ratios increased  significantly in 2022: return on equity (ROE) - from 5.7% to 28.3%,  return on assets (ROA) - from 0.9% to 4.2%, exceeding even the  ten-year-old indicators - respectively 23.7% and 3.2% in 2012.  Moreover, the bank managed to bring ROE at the end of 2022 to a  record level in the context of the last 10 years.

Term deposits increased by 22.8% and stood at AMD 87,677 million,  while the average growth rate since 2012 was 15.4%. Over the past  year, funds of individuals increased by 19.0%, and funds of legal  entities - by 40.9%.

The volume of credit investments by January 1, 2023 reached AMD 166.5  billion, with a y-o-y growth of 10%, with an average y-o-y growth  rate of 12% over the past 10 years. Corporate loans make up 52.7% of  the bank's loan portfolio, and retail loans make up 47.3%.  Investments in securities over the past 10 years have grown on  average by 20.5% annually, reaching AMD 51.5 billion by 2023. Term  deposits increased by 22.8% and stood at AMD 87,677 million, while  the average growth rate since 2012 was 15.4%. Over the past year,  funds of individuals increased by 19.0%, and funds of legal entities  - by 40.9%.  Demand liabilities (current accounts and demand  deposits) increased 2.8-fold in 2022, reaching AMD 141.7 billion,  where the funds of legal entities dominate, 60.7%, and the remaining  39.3% are the funds of individuals. (The settlement exchange rate of  the dram against the US dollar as of December 31, 2022 was 393.57  AMD/$1).