Friday, June 23 2017 17:37

ArmInfo. Fitch Ratings assigned ACBA-Credit Agricole a "B +" rating with a "Long-term Issuer Default Rating" (IDR) rating. In the Fitch report, a solid core of internal  financial viability determines assigning this very rating level to the bank.

This is the highest level of the rating, which can be appropriated to  organizations/companies functioning in Armenia. In fact, the bank is  assigned a rating similar to the country rating, which in world  practice is considered a high valuation. And this assessment of Fitch  Ratings of ACBA-Credit Agricole's activities confirms the leading  position and transparency of this financial structure.

Fitch in the published report also emphasizes that, in the difficult  macroeconomic conditions of recent years, the bank has focused on  improving the quality of assets, and as a consequence, has limited  the rapid growth of the loan portfolio. This in turn has led and in  the future will help to reduce the riskiness of assets and increase  profitability.

Fitch in the analysis took into account such criteria as the Bank's  leading position in the agricultural credit market, high liquidity  level, infrastructural saturation, in particular, the maximum  coverage by the branch network of all regions of Armenia.

To recall, from Armenian banks, the credit ratings of the agency  Fitch have since 2015 also Ameriabank ("B +" forecast "Stable") and  Ardshinbank ("B +" forecast "Stable").

According to the Financial Rating of Armenian Banks as of April 1,  2017, prepared by IC ArmInfo, ACBA-Credit Agricole Bank is included  in the TOP-5 branch network coverage, and the third position is  retained in the number of regional branches. The total capital of the  bank at that date was 58.3 bln AMD (3rd position), assets - 308.3 bln  (4th position), loan portfolio - 196.3 bln (5th position), total  liabilities - 250 bln (4th position). In the first quarter of 2017,  ACBA-Credit Agricole Bank completed with a net profit of 1.5 bln AMD  (4th position), increasing it by 32% in the annual section. According  to efficiency coefficients, the bank was entrenched in TOP-5: ROE  -10.5% and ROA - 2%. ACBA-Credit Agricole Bank - a permanent leader  in the agricultural credit market - 79.2 billion AMD or about 40% of  the loan portfolio of the bank, and in the total agro-loans of the  banking system, the share of ACBA-Credit Agricole is 53%.  37.5  billion AMD or about 20% of the bank's loan portfolio were invested  in the SME sector. 

To note, "ACBA-Credit Agricole Bank" CJSC has been operating in  Armenia since 1995. Since September 2006, the largest European  banking group Credit Agricole SA has been the majority shareholder of  the bank. With a 15.56% interest in the capital, followed by the  participation of SJSC Sacam International (a member of the Credit  Agricole SA group) in the amount of 12.44%, along with which there  are 10 regional Unions of Villagers Mutual Assistance).