HSBC BANK ARMENIA INTENDS TO INCREASE ITS ADVANCES PORTFOLIO BY 30% FOCUSING ON BUSINESS CREDITING IN 2007
Arminfo
2007-04-05 18:42:00
In 2007, the HSBC Bank Armenia is going to increase its advances
portfolio by 30% to $130 mln at the mean. The bank intends to
focus on issuing business credits which make up less than 5% of the
advances portfolio, the Chief Executive Director of the HSBC Bank
Armenia, Tony Turner, said at today’s press-conference devoted to
the inauguration of a new head office in a high-class new building
in the center of Yerevan. The Chief Financial Director of the bank,
Rouzanna Shahinyan, emphasized that the advances portfolio of the
bank increased by 40% in 2006. She noted that in 2007 the HSBC Bank
Armenia is going to enlarge its services in the sphere of mortgage
credit lending where the bank holds the leading positions, as well as
to introduce a number of new services such as crediting of construction
and repairs. T.Turner attached much importance to the fact that the
bank is gradually reducing the credit rates to 11% yearly interest at
the mean, moreover, it introduces a mechanism of crediting at floating
rates. In this connection, he expressed confidence that the interest
rates will be dropping in the country.
In 2006, the HSBC Bank Armenia demonstrated the highest level of net
profit – 2.856 bln AMD ($7.9 mln). Answering ArmInfo correspondent’s
question about the decisions of today’s annual meeting of the bank’s
shareholders, including the issue of dividends, the head of the HSBC
Bank Armenia pointed out that traditionally and "historically" half
of the profit is spent on dividends before taxation. The bank issued
1.4 bln AMD as dividends to the shareholders in 2005, and effected
intermediate payments worth 500 mln AMD in 2006. In total, since 1999
(the bank has been operating in the Armenian market since 1995) its
shareholders representing the HSBC international banking giant (70%)
and the Wings Establishment companies of Vache Manoukyan, a British
entrepreneur (30%), have received $21 mln as dividends. To note, the
HSBC Bank Armenia demonstrated a high growth of banking retail, its
share currently being 40% of the total volume of credits issued. In
T.Turner’s opinion, the banking retail services are increasing at
such high rates that this ratio may change in a year.
The HSBC Bank Armenia pays special attention to the retraining of bank
specialists. Every year about 6-8 people from the middle management
attend training courses in London and other countries. Training courses
are also held in Yerevan with participation of foreign specialists.
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 $19.8 mln (5th place), assets – $220.6 mln
(1st place), crediting – $85 mln (3rd place), amount of deposits by
individuals – $103.4 mln (1st place).