ASSETS OF HSBC BANK ARMENIA GROW BY 30% TO ABOUT 337.4 MILLION DOLLARS IN 2007

Noyan Tapan

Ma y 20, 2008

YEREVAN, MAY 20, NOYAN TAPAN. The results registered by HSBC Bank
Armenia in 2007 were notable in terms of increased investments and
the improved quality of services provided to customers, the bank’s
CEO Tim Slater stated at the May 20 press conference.

In his words, last year the assets of the bank grew by 30% and made
104 bln drams (about 337.4 mln USD), and by this index the bank took a
leading position among the 22 commercial banks of Armenia. 70% increase
of crediting contributed to the indicated growth. The revenues of HSBC
Bank Armenia grew by 24% in 2007 and amounted to 9.16 bln drams in late
2007, while the after-tax profit grew by 5.4% and made 3.3 bln drams.

T. Slater explained a small growth of the profit as compared with
the revenues by the large amount of investments made by the bank in
2007. In particular, invetsments were made for opening a new head
office in Yerevan and 4 branches of HSBC Bank Armenia. The bank’s
shareholders reinvested the sums to be received as dividents.

A large – 32% share of HSBC Bank Armenia in the Armenian mortgage
market bears evidence of a high quality of services provided by
the bank to its customers, while the bank’s share in the deposit
attraction market grew to 26%. According to T. Slater, among the bank’s
customers are about 40 thousand natural persons and 3.6 thousand legal
entities. The staff of the bank increased by 78% to 339 people in 2007.

T. Slater added that the tendencies to the improvement of the bank’s
economic indices and customer services and the growth of investments
will continue in 2008. It is planned to open 3 branches in 2008, the
bank’s national service center (in May), to launch the provision of
Internet banking services (by late 2008). In late May the bank will
also increase the duration of its daily work.

T. Slater announced the 2007 results of HSBC Bank Group in 84
countries: the revenues grew by 24% to 87.6 bln USD, while the pre-tax
profit grew by a record 16% to 24.2 bln USD.