T. SARGSYAN: HSBC PRESENCE IN ARMENIA HAS SPURRED ARMENIAN BANKS’ DEVELOPMENT
Arka News Agency, Armenia
Sept 25 2006
YEREVAN, September 25. /ARKA/. For a decade of its activity in Armenia,
HSBC Bank Armenia has proved that there is favorable ground in the
country for successful banking business, Tigran Sargsyan, chairman of
the Central Bank of Armenia, said Saturday at the ceremony of marking
10th anniversary of HSBC Bank Armenia activity in the republic.
Sargsyan pointed out that the bank started functioning here in
the years of turmoil and suffering. "Courage was needed to start
negotiating with the government and make this step believing in the
country’s future", he said.
In his words, in 90s, Armenian banks feared that they would fail to
stand competition and the offshore bank would humble national banking
system. Contrary to their anticipations, HSBC presence in Armenia
has laid favorable ground for national banks’ activities and spurred
their development.
There are 21 commercial banks in Armenia with their AMD 465.2 billion
aggregate assets and AMD 102.3 billion total capital. Their net profit
for the first half of 2006 was AMD 8.2 billion.
HSBC Bank Armenia, whose parent bank is HSBC Bank plc, was registered
on September 25, 1995.
HSBC Bank plc, a branch of HSBC Holdings plc, possesses 70% of HSBC
Bank Armenia shares, and 30% belong to overseas Armenian investors.
Balance profit of HSBC Bank Armenia totaled AMD 4.6 billion by June
30, 2006 and profit for Jan-June 2006 made 1.5 billion. The bank’s
statutory fund is AMD 2.4, assets are AMD 71.5 billion and total
capital is AMD 7.3 billion. Aggregate credit portfolio of HSBC Bank
Armenia was AMD 22.9 billion by June 30, 2006.
HSBC Bank Armenia is the country’s leading bank on many indices. His
share in commercial banks’ aggregate assets is 15%, in credit
investments is more than 10%, investments in securities is more than
21%. Over 23% of individuals’ and legal entities’ aggregate deposits
in Armenian banks are in HSBC Bank Armenia. ($1 – AMD 384.03).
