Thursday, September 27 2012 17:54
HSBC keeps its trade financing tariffs relatively low despite growing costs on financial market after the crisis
ArmInfo. HSBC has kept its trade financing tariffs relatively low despite growing costs on the financial market after the crisis, Head of Trade Financing Department of HSBC Bank Armenia Arthur Petrosyan said during a bank-sponsored workshop of the Trade Financing Academy on Thursday.
He said that now that confidence between import-export partners has dropped, the role of financial intermediation is growing.
"Trade financing is a short-term product generally provided for 180 days at longest but our schemes allow us to offer them for two years and to save substantial funds for our big customers," Petrosyan said.
He said that HSBC enjoys dominance in the field of trade financing – almost 9% of the market or $0.5trl. As regards HSBC Bank Armenia, according to S.W.I.F.T., it holds almost 36% of the market.
Petrosyan said that the bank is a bit concerned about the low awareness of local borrowers. "That's why we are organizing such workshops," he said.
As of July 1 2012 the bank's trade financing portfolio totaled 10bln AMD (27% growth in Jan-June 2012).
According to ArmInfo's Ranking of Commercial Banks of Armenia, in Jan- June 2012 the assets of HSBC Bank Armenia grew by 10% to 198bln AMD, the loans by 15% to 124bln AMD. 83% of the loans were corporate loans (17% growth in Jan-June 2012). The net profit during the period was 3.5bln AMD (28% more than a year before).
Since 1996 the assets of HSBC Bank Armenia has grown from $5mln to $480mln. The bank has 35,000 individual and 5,000 corporate customers. The shareholders of the bank are HSBC Europe B.V. (70%) and Wings Establishment (30%).