YEREVAN (Arka)—All of the shares of the Yerevan-based and Russian-owned Areximbank-Gazprombank Group were acquired on October 7 by a Russia-based financial and industrial corporation called Region, whose sole shareholder is the ultimate beneficiary and chairman of board of Armenian Ardshinbank Karen Safaryan.
In a joint statement, the banks said the next stage of the deal is their merger as prescribed by Armenian legislation.
“As a result of the acquisition, Ardshinbank will become the largest bank in Armenia, including, by size of capital, assets and branch network. After the merger, Ardshinbank ‘s total capital will grow to 74 billion drams, the assets will increase up to about 540 billion drams and the sales network will expand to 72 universal branches ,” according to the statement.
The press release says the deal will significantly enhance the ability of Ardshinbank to provide customers with a wider range of quality banking services both to corporate and retail businesses. ‘Thus, Ardshinbank will further strengthen its leading position in the Armenian banking system and get a competitive advantage in the market,’ the statement says.
Ardshinbank (until November 2014 Ardshininvestbank CJSC) was founded in 2003. It has 56 branches, one service point and an office in Paris.
At the end of the second quarter Ardshinbank’s assets stood at 452.7 billion drams (a 13% growth from the beginning of the year), liabilities – at 401.5 billion drams (14% growth), total capital – at 51.3 billion drams (5.9% growth), the authorized capital – at 19.6 billion drams, credit investments – at 310.5 billion drams (13.16% growth). The bank’s profit in the first half of the current year amounted to over 2.2 billion drams (47.56% growth).
Areximbank-Gazprombank Group was founded in 1998; it has 16 branches and 1 service point. Its assets at the end of the second quarter amounted to 97.9 billion drams (4.8% growth), liabilities –at 75 billion drams (growth of 6. 6%), total capital – at 22.9 billion drams (decline by 0.74%), the authorized capital – at 30.59 billion drams, credit investments – at 39.7 billion drams (decline of 5.17%). The bank closed the first half of 2016 with a loss of 183.4 million drams.
The financial and industrial corporation Region was founded in 2006 and since its inception it has been engaged in investment activities in the Republic of Armenia. ($ 1 – 475.34 drams).