Monday, February 27 2012 20:49
Business crediting is a primary tool for Anelik Bank
ArmInfo. ArmInfo's Interview with First Deputy Chairman of Board of Anelik Bank Bagrat Chzmachyan
In 2011 Anelik Bank CJSC actively increased the portfolio of liabilities by attracting financial resources from international structures and deposits of the population. How favorable was the year 2011 for placement of these resources in the market?
In 2011 Anelik Bank managed to attract about USD 10 mln from the international structures, as well as to considerably increase the deposit portfolio. In particular, in 2011 the deposits of the population exceeded AMD 12 bln. As a result, the Bank was able to provide loans worth a total of USD 70 mln. I think these indices demonstrate the dynamic development of the Bank. Moreover, the year 2011 was considered as a pre-crisis period against the background of the developments in the United States and in a number of European countries.
What was the dynamic of the margin between the rates of the funds attracted and placed? Did the Bank ensure the profit of its development program?
In general, the commercial banks work with a comparatively low margin when crediting business. Business crediting is a primary tool for Anelik Bank. The share of business loans in the credit portfolio of the Bank prevails (70%). This is why the Bank works with a rather small margin. Our strategy is to compensate for the low margin by the turnover volumes. Both our customers and we benefit from this. As regards the profit, the Bank did not gain high results in 2011, as the quality of the credit portfolio worsened in the sphere of finance, particularly, in the banking system, and this increased the loss provisions. As a result, the profit of the Bank totaled about AMD 150 mln - it is insufficient. But given the specified growth dynamics of the credit and deposit portfolios, we will try to ensure the targeted profit in 2012-2014. However, it is also necessary to take into account the second crisis wave expected in 2012-2013.
In 2011 the banking sector of the country directed the smallest volume of credit resources to the spheres of construction, transport and communication. What was the structure of Anelik Bank's credit portfolio?
In 2011 the Bank focused on business crediting, which was up 21% to AMD 28 bln. Seeking to diversify its revenues, in 2011 the Bank resumed consumer crediting, which we will try to expand in 2012. The Bank did not keep aloof from mortgage lending either. In 2011 the portfolio of mortgage loans grew by AMD 1.3 bln to AMD 2.4 bln. The other types of consumer loans, particularly, card loans (credit cards and overdrafts) also grew. In 2011 the Bank effectively provided loans for education. It is very important because we realize that education is the pledge of well-being. Though this type of loans is unable to ensure a big portfolio, nevertheless, the number of its borrowers is growing. This means that we have managed to help many students pay for their education. Over 2011 the Bank provided 300 loans to the students.
Over the past few years, Anelik Bank has been giving high priority to up-to-date technologies and approaches. Which of them could you single out as "drivers" for growth?
Anelik Bank has always attached much importance to innovations and has sought to use them in banking tools. The use of innovative technologies allows being in step with the times. Last year the Bank completely switched to online operation, and this online communication between the head office and the branches has considerably enhanced the efficiency of the structures' activities and essentially accelerated the sale of banking products. Loyal to its strategy, in 2011 the Bank introduced a new product - customs payments under the Bank-Customer system. This is a novelty in the banking system of Armenia, as Anelik Bank is the first and still the only bank that provides this service. It is not yet so popular among the customers, but some time is needed for that.
What results did the Anelik money transfer system fix in 2011?
The year 2011 was quite successful for the Anelik money transfer system. The total turnover of money transfers in 2011 exceeded USD 1 bln. Though this index is lower than in 2008, however, its growth made up 13% as compared to the growth in 2010. Anelik Bank does its best to develop the system of money transfers and to maintain the high image of the Anelik brand not only in Armenia, but also all over the world, since the system operates in 63,000 service points in over 90 countries of the world.
How do you assess the stability of Armenia's banking system and what is its key driving force today?
Being the driving force of economy, the banking system has proved its stability and steadiness over the past 20 years. One can say without any exaggeration that the banking system is the most accomplished economic sphere, which remained stable even over the period of the global financial and economic crisis. A number of factors contributed to this, and the healthy competition among the Armenian banks should be especially singled out. This is the key driving force of the Armenian banking system. Certainly, one should especially stress the legal and normative regulation of this sphere carried out by the Central Bank of Armenia.
Some experts believe that the system will be overcoming the consequences of the crisis until 2013. What do you think of it given the latest developments in the world?
The financial and economic crisis, which started in 2008, has left deep scars on the world economy. This could not help affecting Armenia's economy, which is part of the global economy. In 2011 the crisis became a bit moderate, however, many well-known economists believe that the second crisis wave will strike in 2012 given the developments in the Eurozone and the USA. I think this shock will last long, and it is natural, because crises do not emerge instantly; nor are they overcome immediately. I think, the next 3-4 years will be a period of recovery and moderate growth, which are to completely bring the economy out of the crisis.
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