Monday, October 3 2011 17:21
UNIBANK celebrates its 10th Anniversary
ArmInfo. In October 2011 one of the leading banks in Armenia- Unibank CJSC will celebrates its 10th anniversary. Thanks to its successful work, the bank has become a reliable partner of both privates and corporate customers. Thousands of customers have entrusted their savings and business to the bank. Today, Unibank is a popular bank serving 37 branches throughout the country.
Gagik Zakaryan, co-promoter and chairman of Unibank Board, speaks on the activity and perspectives of development of the bank in an interview with ArmInfo.
Over the past 10 years Unibank has become one of the largest banks in Armenia. How do you assess the path Unibank has passed?
Unibank was being created during a rather complicated period of tough competition in the market, when the banking system of Armenia had already been formed. There were seven of us when we launched our activities, but we had quite ambitious plans for development, and the bank was going to turn into one of the most demanded universal financial institutions of the republic within a short period of time. We managed to fulfill our plans successfully and to justify the customers’ confidence. As a result, Unibank is on the list of the top seven largest banks of the country. At present we are going to make the bank a leader in the retail market.
By a number of indices, Unibank is already the leader in the banking market and the Bank’s activity makes an essential impact on the financial system of the country. What is the importance of Unibank for Armenia’s economy in general, and what key directions of work will be relevant for the Bank in the near future?
Our goal is to enhance the availability of banking service for the wide layers of population and to create more opportunities for development of small and medium businesses. This has a direct
positive impact on the economic growth of the country. I think the bank's activities can be effective only in case our activity results in growth of the customers' welfare. This may be reflected in well-timed provision of a loan for purchase of a flat or a car with minimal savings or for replenishment of cash funds and ensuring of ceaseless operation of an enterprise. At the same time, we are trying to introduce new models of banking development in the Armenian
market. The considerable growth of financial results and the good dynamics of
the bank's indices prove that a right path has been chosen. Unibank's assets exceeded 112.9 bln AMD, credit portfolio - 74.8 bln AMD. By the volume of time deposits (80.3 bln AMD), Unibank is in the lead in the Armenian banking system.
The long-term deposits in the portfolio are the best evidence of public confidence. On the
threshold of its 10th anniversary, the bank has launched the "Holiday-10" deposit at 12.5% p.a. This deposit allows the depositors to make use of the multicurrency regime, capitalize the interest, replenish or partly withdraw the deposit amount, receive an opportunity of free insurance or participate in drawing of valuable prizes. At the end of the first half of 2011, the net profit of Unibank exceeded 1 bln AMD and demonstrated the biggest annual growth in the banking system (over 5 times), thanks to which the bank has joined the list of top 50 largest taxpayers of Armenia.
The year 2010 is distinguished for Unibank by dynamical development of retail business. The Bank diversified the credit portfolio, giving the preference to personal lending. How perspective do you think this policy of the Bank is?
2010 was a crucial year for the bank, with retail banking (consumer lending and card business) proclaimed as its priority. As I have already mentioned, Unibank is going to become the leader of Armenia's retail banking market. We seek to become the most popular retail bank in Armenia. To this end, we give special priority to personal lending and issue a big amount of small loans (less than 1.5mln AMD).
Unibank offers consumer loans and overdrafts upon preferential terms (with no security) for any needs: purchase of domestic appliances, computers and furniture, repair, medical services, recreation. Our key advantages in serving individual customers are quickness in decision making and no red tape. As of Jan-June 2011 the bank lent 23.6bln AMD to individuals (31.6% of its total lending). The number of consumer loans has increased sevenfold as compared with the last year.
Unibank's success on the consumer lending market has encouraged it to open specialized consumer and card lending offices with a view to make relevant procedures faster and simper. The bank continues enlarging its promo point network. It already has ones in furniture and equipment shops, Aviatrans travel agency, Orange Armenia's offices in Yerevan, Gyumri and Vanadzor.
By the number of emitted cards, Unibank is on the list of top five commercial banks of Armenia. At present the number of the cards issued by Unibank is 73,000 (the lion's share falls on Visa cards), and the overdraft portfolio exceeds 11 bln AMD. 90% of the card portfolio falls on credit cards. The Bank is going to complete the year 2011 with 110,000 cards. Unibank envisages emission of Visa chip cards within its own processing center for early November. About 1
mln USD was allocated for creation of this center. The transition to its own processing center will allow Unibank to considerably expand the range of card products and to launch joint projects with manufacturers and trade networks.
In late Q1 2012 Unibank will launch a Mobile Commerce project, an opportunity for customers to pay for goods and service by means of their mobile phones. Developed business is crucial for any economy. So, business lending is a promising activity for Unibank. In Jan-June 2011 the amount of the bank's business loans grew by 1.5 times. For small companies we have a loan requiring no security. A guarantee by individual or company will be enough.
Unibank has conquered the major part of the money transfers market. Why are UNISTREAM transfers so demanded, and how are you going to develop this direction in the Armenian market?
UNISTREAM is the leader of Armenia's money transfer market. In Jan-July 2011 its turnover exceeded $349mln (27% growth) with the number of transfers amounting to 436,600. "Armenia is one of the most promising money transfer markets in the CIS, and Unibank is going to
intensify its activities here. We are planning to further enlarge our presence on the market by optimizing our tariffs and enhancing our customers' loyalty. In 2011 we expect $670mln turnover.
UNISTREAM has operated in Armenia since 2002 through the agency of its exclusive partner Unibank and its 37 branches. The key advantage of UNISTREAM is its client-oriented policy. UNISTREAM has a function allowing customers to receive money at any of Unibank's 37 branches irrespective of where exactly the money was sent. The system also has a unified card (a service allowing enabling customers to send money as soon as possible) and a recipient's card. The other advantages are low cost (0.35%) and wide geography (over 220,000 service points worldwide).
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