MICROCAPITAL BRIEF: ProCredit Bank Armenia Launches Visa Business Card

ProCredit Bank Armenia, a microfinance institution (MFI) and member of Germany’s ProCredit Holding, recently launched its Visa Business Card, which is supported by the 170-country network of US-based payment services firm Visa. The service allows businesses to access accounts remotely, withdraw cash from automated teller machines (ATMs), make payments and receive SMS (text message) notifications confirming internet transactions. The card carries an annual service fee of AMD 15,000 (USD 36) with internet transaction access and AMD 8,000 (USD 19) without internet.

For the year 2011, ProCredit Bank Armenia reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 78.4 million, a gross loan portfolio of USD 62.4 million, deposits of USD 29.1 million, return on assets (ROA) of -1.15 percent and return on equity (ROE) of -5.63 percent. The number of active borrowers and depositors is not available. For the year 2011, ProCredit Holding, which has operations in 21 countries, reported total assets of EUR 5.49 billion (USD 7.18 billion), a gross loan portfolio of EUR 4.03 billion (USD 5.27 billion), 2.92 million clients customer deposits of 3.42 billion, 3.65 million deposit accounts and return on equity (ROE) of 10.4 percent. For the year 2012, Visa reported total assets of USD 40 billion.

By Brendan Millan, Research Associate

About ProCredit Bank Armenia
Established in 2007, ProCredit Bank Armenia is a financial institution specializing in serving micro-, small and medium-sized Armenian enterprises. The bank is a member of ProCredit Holding, a Germany-based development banking group. For the year 2011, ProCredit Bank Armenia reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 78.4 million, a gross loan portfolio of USD 62.4 million, deposits of USD 29.1 million, return on assets (ROA) of -1.15 percent and return on equity (ROE) of -5.63 percent. The number of active borrowers and depositors is not available.

About ProCredit Holding
Headquartered in Germany, ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin American and Africa. ProCredit’s core business is the provision of credit and other financial services to very small, small and medium-sized enterprises as well as lower- and middle-income savers. For the year 2011, ProCredit reported total assets of EUR 5.49 billion (USD 7.18 billion), a gross loan portfolio of EUR 4.03 billion (USD 5.27 billion), 2.92 million clients customer deposits of 3.42 billion, 3.65 million deposit accounts and return on equity (ROE) of 10.4 percent [2].

About Visa
Founded in 1958, Visa is a US-based financial services corporation.  For the year 2012, Visa reported total assets of USD 40 billion. Visa cards are accepted in approximately 170 countries.

Sources and Additional Resources:

[1] ProCredit Bank Armenia: “Press Release: ProCredit Bank Launches VISA Business Card”, http://www.procreditbank.am/

[2] ProCredit Holding: “2011 Annual Report”, http://www.procredit-holding.com/upload/pdf/AnnualReports/Annual_Report_2011/pch_AR_2011_15-05.pdf

MicroCapital.org story, March 19, 2013, “ProCredit Bank Ukraine Opens New Branch in Kharkiv”, https://www.microcapital.org/microcapital-brief-procredit-bank-ukraine-opens-new-branch-in-kharkiv/

MicroCapital.org story, January 8, 2013, “European Fund for Southeast Europe (EFSE) Loans $4.9m to Banka Respublika of Azerbaijan, $3.2m to ProCredit Bank Bosnia and Herzegovina”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-4-9m-to-banka-respublika-of-azerbaijan-3-2m-to-procredit-bank-bosnia-and-herzegovina/

MicroCapital.org story, August 6, 2012, “European Fund for Southeast Europe (EFSE) Loans $10m to ProCredit Bank of Georgia”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-10m-to-procredit-bank-of-georgia/

MicroCapital.org story, July 27, 2012, “responsAbility Loans $7.8m to ProCredit Moldova, $1.2m to Noa of Albania”, https://www.microcapital.org/microcapital-brief-responsability-loans-7-8m-to-procredit-moldova-1-2m-to-noa-of-albania/

MicroCapital’s Universe Profile: ProCredit Bank Armenia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Armenia

MicroCapital’s Universe Profile: ProCredit Holding,  https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding#Description_140_word_limit_

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