HSBC HOLDINGS PLANS TO INCREASE INVESTMENTS IN ARMENIAN ECONOMY
Arminfo
2007-04-05 17:50:00
HSBC Holdings is planning to increase its investments in the Armenian
economy, Head of International of HSBC Bank Armenia Jonathan Crichton
said during a press-conference today.
Crichton noted that HSBC Holdings gives preference to markets with
developed economic basis, particularly, Russia, Poland, the Czech
Republic, Slovakia, Hungary. As regards Armenia, it has high capacities
and HSBC Holdings can no longer imagine its further progress without
the support of its Armenian partners – the employees of HSBC Bank
Armenia and its clients.
In his turn, HSBC CEO Tony Turner said that during the first years of
its work in Armenia the bank was seriously criticized for passivity
but, in fact, it was studying the market and its prospects, assessing
risks and acquiring experience. In the last two years the bank has
substantially increased the amount of crediting due mostly to stable
economic growth in Armenia (13.5% in 2006). Turner noted that,
considering the big share of construction in GDP growth, the bank
has decided to increase its mortgage credit portfolio: in 2006 HSBC
Bank Armenia showed the highest index in this sector – 10.4bln AMD
($28.7mln)
Today, the bank is among the leading creditors in Armenia – due to
the colossal resources of HSBC Holdings – and is ready to further
increase its investments in the country’s economy. One of the key
priorities of the bank in Armenia is further development of its branch
network. This year the bank is planning to open 3 new branches as
well as 21 bancomats.
To note, in 2006 HSBC Bank Armenia showed the biggest net profit in
the banking sector of Armenia – 2.856bn AMD or $7.9mln. The bank was
the leader in mortgage crediting and showed high growth in banking
retail – $39mln of $98mln were lent through banking retail.
According to the Ranking of the Commercial Banks of Armenia by the
Agency of Rating Marketing Information (ArmInfo), as of Jan 1 2007
the bank’s capital totalled $19.8mln (5th place), assets – $220.6mln
(1st place), crediting – $85mln (3rd place), amount of deposits by
individuals – $103.4mln (1st place).