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Mrs. Petrosyan, please tell a little about yourself. How long have you been working at ARMECONOMBANK OJSC and when were you appointed as a member of the Bank’s Board?

I was hired by ARMECONOMBANK OJSC in 2015, immediately after graduating from HEI. I started from the position of a specialist. I worked at International Operations department of ARMECONOMBANK OJSC for a long time holding various positions.

In 2013, I was elected as ARMECONOMBANK OJSC Board Member and up to date I have been holding a position of a Board Member, Secretary of the Board.

Let’s pass on the Bank’s activities.  In July of this year, ARMECONOMBANK OJSC announced about another distribution of shares. What’s the volume this time and in what terms have the new shares been placed?

44.700 common shares were submitted for distribution, each with a nominal value of AMD 10.400 and market value of AMD 17.900. The total volume of shares submitted to the placement amounts to 800 mln. 130 thousand Armenian drams. The placement has already started and will end on 30^th of December. All those who want to obtain shares and become a shareholder of ARMECONOMBANK OJSC, can get more detailed information on the Bank and the terms of distribution from the Prospectus of the shares allocation, which is posted on the Bank’s website.

The previous placement of common shares by ARMECONOMBANK OJSC was executed last year. How would you assess the results of the placement? Can we consider it succeeded?

As a result of the previous distribution, the capital of ARMECONOMBANK OJSC was supplemented with 500 mln. 500 thousand drams, moreover approximately 36% of the placed shares was acquired by small shareholders resulting in the increase of the number of small shareholders by 1400.  This is a proof of continuous growth of peoples’ trust towards the Bank and the latters’ increasing interest towards the shares as an alternative option of investment.

Currently, the Bank has about 4800 shareholders.

Are there any factors which make investments with ARMECONOMBANK OJSC more attractive? Why would the investor choose shares of ARMECONOMBANK OJSC over the shares of other companies?

The shares of ARMECONOMBANK OJSC are listed in B platform of “Armenia Securities Exchange” OJSC and allowed to trading which means that any shareholder, if desired, can immediately realize his/her shares. The fact of the shares being listed and the public placement of shares make the company more attractive for the investors, since the listed companies have transparent working style and comply with the principles of corporate governance, which is driven by every investor’s interests. 

To be listed in B platform of Armenia Securities Exchange, the free float of a company shall be at least 10%. The "free float" is the proportion of stocks of a company that is not directly or indirectly held by major shareholders. Therefore, the higher is the free float among the total shares, the more attractive is the company for new investors, shareholders. The free float of ARMECONOMBANK OJSC exceeds 25%.

The continuous increase of balance- sheet/ market value of the Bank’s shares is another component making the shares of ARMECONOMBANK OJSC more attractive. If during the distribution carried out last year the value of shares was AMD 16.220, this year it is already AMD 17.900.

Another important factor which I would like to emphasize is the dividends. In this regard, the Bank has adopted a conservative policy and every year pays annual dividends to its shareholders.

Each company has its development principles, its priorities.  Can you point out the cornerstones of ARMECONOMBANK OJSC development strategy?

ARMECONOMBANK OJSC attaches significant importance to the international cooperation. For many years, European Bank for Reconstruction and Development has been a shareholder of ARMECONOMBANK OJSC. In this regard, the mutually beneficial cooperation between ARMECONOMBANK OJSC and EBRD has lasted for 15 years. For years, the Bank has cooperated with European Bank for Reconstruction and Development, German-Armenian Fund, International Financial Corporation, Dutch Development Bank (FMO) and with other reputable institutions.

The bank is constantly working towards the attraction of new customers, retention of existing ones and increasing of service quality. The loyal and satisfied customer is the guarantee of the Bank’s success; such customers attract new ones and promote the further growth of the Bank.

The introduction and development of new digital banking technologies, the expansion of the list of modern banking technologies are in the focus of the Bank’s attention.

What are the Bank’s plans for the upcoming years? In what directions the Bank is planning to develop? Has the epidemic forced the Bank to make changes in its plans?

Despite the challenges conditioned with the pandemic, the Bank will proceed with the implementation of its strategic plan; of course, some amendments and revisions have been made to bring the plan to conformity with the current situation. For example, within the programs aimed at neutralizing the economic consequences of the coronavirus, ARMECONOMBANK OJSC has already provided AMD 12 bn. loan at the expense of its own resources.  

As I have already mentioned, ARMECONOMBANK OJSC gives highest priority to its customers, accordingly, all the possible measures will be taken to meet their needs; the scope of the services provided by the Bank will be expanded including the application of new loan and deposit types, expansion of the network of cards service, introduction of package offers and so on. 

In the conditions of the pandemic, the importance of digital technologies became more obvious. Recently, ARMECONOMBANK OJSC has introduced updated “AEB Mobile Banking” application and “AEB Payments” online payment system which ensure fast, high quality service of customers without the necessity of visiting the Bank.  I would like to remind that the Bank’s NANO branch equipped with modern technologies operates round-the-clock rendering the clients nearly all banking services.

The introduction of new technologies in the Bank will be continuous.

ARMECONOMBANK OJSC will continue to cooperate with international institutions expanding the scope of cooperation in terms of attraction of both new projects and companies.

New branches will be launched; technical refurbishments will be periodically carried out in the existing ones to bring the quality of the services to conformity with the international standards.

The management of the Bank is certain, that due to the measures taken, the Bank will not only retain but also increase its portion in the market.

Source of the material: https://www.araratnews.am/show/3261