Moody’s upgraded Ameriabank’s outlook to “stable”, reaffirmed Ba3 rating

by times news cr

Moody’s rating agency raised Ameriabank’s basic credit rating (BCA) from b1 to bа3, reaffirming the Ba3 long-term deposit rating, and revised the latter’s outlook to “stable” instead of the previous “negative”.

The bank’s long-term counterparty risk rating (CRR) was also raised from Ba3 to Ba2, and the rating from Ba3(cr) to Ba2(cr).

These improvements are due to a number of factors, in particular, the stability of the quality of the bank’s assets in the conditions of the epidemic, along with the sharp improvement of the capital adequacy and profitability indicators.

Moody’s also notes that Ameriabank continues to provide stable indicators, as evidenced by the very high return on tangible assets: 3.6% in 2022. and 3.5% (annualized) in 2023. during the 1st quarter. At the same time, the bank has ensured high income before provisioning, low cost of lending and good indicators of cost efficiency. 2023 In the 1st quarter, the cost-to-income ratio was 45%.

According to Moody’s, in 2021-2022 In the post-epidemic period, Ameriabank significantly improved the quality of its assets. As of the 1st quarter, it was 2.5%, decreasing in 2020. from 4.2% registered at the end. 2023 According to the results of the 1st quarter, the coverage of problem loans with reserves is estimated to be stable and is 80%.

In recent years, Ameriabank’s capital buffer has also significantly improved amid high profitability and moderate growth of the loan portfolio.

Ameriabank’s long-term deposit rating forecast is “stable” and reflects Moody’s view that the bank will maintain high indicators over the next 12-18 months.

Ameriabank’s rating outlook upgrade followed a revision of Armenia’s sovereign rating outlook from “negative” to “stable”.

About Ameriabank

Ameriabank is a leading financial and technological institution, one of the significant actors of the RA economic sector, whose assets exceed AMD 1 trillion. Following the path of digitalization, the Bank has implemented a number of innovative programs and platforms, and continues to improve them, aimed at meeting the various needs of people. dynamically developing financial and technological environment.

Ameria was the first in Armenia to create ecosystems for SMEs and individuals, providing access to a number of banking and non-banking services on a one-stop basis: Estate.ameriabank.am, Automarket.ameriabank.am, Business.ameriabank.am.

Being customer-oriented, Ameria strives to provide a high quality of service in the modern digital world by offering complete solutions to improve the quality of life in a trusted and secure environment.

You may also like

Leave a Comment

Statcounter code invalid. Insert a fresh copy.