Wednesday, July 14 2010 15:56
Anelik system is going to enter the Near East
ArmInfo. Interview of First Deputy Chairman of Anelik Bank Board Bagrat Chzmachyan with ArmInfo news agency
Mr. Chzmachyan, over the first months of 2010 the market of private transfers of Armenia demonstrated promising indices. However, according to the recent indices, these expectations are not completely justified. What can you say about Anelik system in this matter?
This year Anelik system is demonstrating growth dynamics though its rates yield to our expectations. In particular, this was mostly conditioned by the political events in Kyrgyzstan, where we failed to receive up to 40 mln USD of the turnover. As a result, the turnover of the Anelik international money transfer system grew by 10% in the first half-year of 2010 as against the same period of 2009, having reached $450 mln. I think no sharp jumps will be noticed in Q3, but Anelik turnover will grow much by the end of the year.
No changes are observed in the quantity. In the first half-year of 2010, a total of 600 thsd money transfers were implemented via the Anelik system, the average size of a transfer was $750. The Anelik commission fee is one of lowest ones in the market – starting from 0,5% and 0.8% depending on the sum and direction of the transfer.
What share does Armenia have in the total turnover of Anelik?
Over the past few years, Armenia has been ensuring 10% of the Anelik turnover. The average growth of transfers in Armenia does not exceed the growth rates of the system in general. In the first half-year the Anelik turnover in Armenia grew by 18% as compared with the same period of 2009, having totaled $45 mln, $6.1 mln of them being transfers from Armenia (49% annual growth). The number of transfers in Armenia via Anelik is 60000.
It is noteworthy that this year the money transfer in Russian rubles has grown much. If in the second half-year of 2009 transfers in Russian rubles amounted to 15 mln roubles, in Jan-Jun 2010 they reached 45 mln rubles. This is explained by the fact that the major part of the transfers come from Russia and at present many customers prefer not to convert money and transfer it directly in rubles, since Anelik gives them such an opportunity.
Anelik Bank has had a new majority shareholder in the person of the Lebanese CreditBank, which was going to extend the Anelik system geography to the Near East. Have any specific steps been taken in this direction?
As the availability of its own money transfer system was new experience for the Lebanese CreditBank, before launching it we held technical audit of the system to make sure of its absolute security. The Russian representative office of KPMG company held the audit in Q1 2010, and the CreditBank became a member of the Anelik system. Technical problems are still being solved, and I think Anelik will start implementing transfers to Lebanon in Q3 20l0.
As our shareholder in the person of the Lebanese CreditBank promised, further the geography of transfers via the system will extend to the Near East. We hope that by the end of the current year the sight of activity in Lebanon will be obvious, although sharp growth in this direction is not expected yet. Though there is a big Armenian community in Lebanon, nevertheless, it will be preferable for us to develop the system not only via transfers to Armenia, but also in a wider aspect, i.e. between the countries of the Near East. It is known that in these countries there are various money transfer systems, the commission fees of which are much higher than those offered by the Anelik system.
Mr. Chzmachyan, how does Anelik Bank work with the new shareholder after the first crisis wave, particularly, in the credit market?
As regards crediting, we observe positive dynamics here. Over the first half-year of 2010, the credit portfolio of Anelik Bank grew by 8% to 26.2 bln AMD as of 1 July 2010, or over 51% of the bank's assets, which amounted to 51 bln AMD. At present we are conducting active crediting policy, and in the crediting sphere we focus on small and medium-sized business. Recently Anelik Bank, jointly with CreditBank, has provided a big loan worth 8 mln USD to a company with an enlarged scope of activity. We are currently considering new credit applications. Anelik Bank is going to increase its credit portfolio by 38,3% to 35 bln AMD before the end of the year, and this index will be secured at the expense of both the bank’s own resources and the expected financial resources from international financial organizations, with which the bank is currently holding intensive negotiations. The matter concerns attraction of resources under the programs in both the small and medium-sized business sphere and in the field of energy.
What was the situation with the attracted resources from the local market in the first half-year of 2010?
Over January-June 2010 Anelik Bank increased its portfolio of time deposits by 17% to 9.8 bln AMD, and the lion's share of these deposits (about 90%) fell on USD deposits. The small AMD deposits mostly belong to legal entities. This shows the poor confidence in AMD.
The interest rates of USD resources are declining in the market. What rates does Anelik Bank have today?
At present only the interest rates of foreign exchange deposits may be reduced. Reduction in rates of AMD resources is out of question now, taking into account that the Central Bank has changed the reserve requirements. Though more and more USD resources are coming to the bank from the market and increasing the USD liabilities, the load on AMD resources is growing. For instance, if before the Central Bank revised the reserve requirements, our bank had reserved 400 mln AMD in the Central Bank, now this amount is over 1 bln AMD. In this situation I see no premises for reduction in AMD resources rates. Today Anelik Bank attracts AMD deposits at 12% p.a., and USD deposits at 9% p.a., and the average interest rate for loans is 16% p.a.
Anelik Bank was the first in the market to simultaneously cooperate with three payment systems: ArCa, Visa and MasterCard. Is the bank
providing loans by means of plastic cards at present?
We are chiefly providing loans to the salary project clients, as well as to VIP-clients that have been serviced by our bank for a long time. At present, the number of active cards issued by Anelik Bank is 32000, and the growth since the beginning of the year is about 10%. We have recently signed contracts with various trade and servicing points, at which the holders of the cards issued by our bank will be able to receive discounts ranging from 10% to 30%. And in the near future, booklets with the full list of partners, i.e. trade and servicing points will be published.
Mr. Chzmachyan, when is the head office of the bank going to move to a new building?
The bank is going to move to a new head office in December 2010. Further extension of the branch network of the bank is scheduled for 2011. Next year we are going to open 2-3 more offices, one of them in the town of Sevan.
What net profit did Anelik Bank ensure in the first half-year of 2010?
Over Q2 2010 Anelik Bank ensured considerable profit. If over Q1 2010 the net profit of the bank was 40 mln AMD, by the end of the first half-year of 2010 it amounted to 267 mln AMD.
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