Moody’s confirms rating of Unibank’s long-term deposits at B3, changing outlook to «Positive»

09/01/2016

Moody’s Investors Service rating agency confirmed the rating of Unibank’s long-term deposits in drams and foreign currencies at B3 in August 2016, changing the outlook to ‘Positive’, the bank’s press office reported on Friday.

Arka, 2 September 2016

The change of the outlook was due to the circumstance that Unibank has strengthened its positions on capital.

Unibank has carried out three issues of stocks over the last 12 months and has auctioned all these securities significantly building up its capital and ensuring the further advancement at the market.

“Taking into account significant interest of public and investors in its activities and stocks, Unibank intends to embark on another issue amounting to AMD 4 billion,” the bank says in its press release.

According to the Moody’s forecast, Unibank’s normative capital will grow by more than 50%.

This means that the bank will fully comply with the central banks’ requirement to the size of capital.

In late December 2014, the Central Bank of Armenia decided to oblige banks to increase their total capital at least to AMD 30 billion from the AMD 5 billion requited before.

The demand comes into force on January 1, 2017.

In its press release, Unibank says that it accounted for positive financial results in all the segments of its activity and that it continued building up its profits.

The bank’s assets total about AMD 167 billion and liabilities AMD 138 billion. Its total capital exceeded AMD 28.8 billion this year after growing 27%, compared with the previous year, thanks to the increase of the authorized capital and profits.

Unibank’s profit for the second quarter amounts to AMD 570 million. The bank’s head office is in Yerevan, and it also has 46 branches and 54 promotional points.

Unibank serves more than 300,000 clients.

The bank also says in the press release that its baseline credit assessment is set at caa1 and its counterparty risk assessment at B1(cr)/NP(cr).