Monday, September 19 2011 18:22

HSBC to continue developing its business in Armenia


ArmInfo. HSBC will continue investing money in the development of its business in Armenia, CEO of HSBC Bank Armenia Astried Clifford said during a press-conference on Monday, when asked to comment on HSBC's decision to withdraw from Georgia.

She said that the bank has already earmarked almost $1mln for upgrading HSBC Bank Armenia's plastic card service software. Within a month HSBC Bank Armenia will restart its branch at Karcomauto LLC and next year will open two more branches. The ATM network will be enlarged, with more cash-in ATMs to be launched.

Clifford said that in May 2011 HSBC adopted a new strategy stipulating the application of new approaches and methodology, based on the objective analysis of potential countries and markets, where HSBC might use its resources with higher activity and profitability. The analysis is based on five criteria: potential of economic development, extent of integration, margin of profit, cost efficiency and liquidity and self-sufficiency of financing. According to Clifford, Armenia has passed this test. In Armenia return on capital is 22% - higher than in Georgia and even the target level of HSBC Group.

Clifford said that HSBC has always been successful in Armenia. In 1997 the bank has worked at profit and today has quite a big share of the local market – 20-30% depending on the type of product or service. The loan book of HSBC Bank Armenia is growing due to deposits, which is not the case in Georgia.

In terms of integration, Armenia has a big advantage - vast Diaspora, and HSBC is actively working to use the capacities of Diaspora Armenians by providing them with products and services in line with the laws of the countries they live in. HSBC Bank Armenia will have representatives in the delegation that will accompany the Armenian President during his Sept visit to the United States. They will visit the US-based branches of HSBC so as to find out what products and services can be in demand among US Armenians.

Clifford said that HSBC is interested in China and Asia-Pacific.

According to ArmInfo's Ranking of Commercial Banks of Armenia, as of July 1 2011 the loan book of HSBC Bank Armenia totaled 104.7bln AMD (4th place in Armenia's banking sector) - 32% more than on July 1 2010 and 12% more than on May 1 2011. 67% of the loans were given to the economy (70.6bln AMD, 3rd). Trade received 29.4% (2nd), industry - 22.9% (4th), mortgage - 15.9% (1st), construction - 14.6% (2nd). The assets totaled 155.2bln AMD (3rd). ROE made up 10.35% (3rd), ROA - 1.8% (5th).

The shareholders of HSBC Bank Armenia are HSBC Europe B.V. (70%) and Wings Establishment (30%).
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