Friday, July 12 2013 15:43
Areximbank-Gazprombank Group offers customers reliable mechanisms to protect savings from currency risks
ArmInfo. Areximbank-Gazprombank Group offers its customers reliable mechanisms to protect savings from currency risks and diversify currency risks, says Narine Sargsyan, Head of the Department for Financial Operations at Areximbank-GPB Group.
The bank's pres-service told ArmInfo that the market is highly volatile now, especially when it comes to the gold price and foreign currency.
"I think that with changing market situation and the foreign exchange rate fluctuations, it would be right if customers diversified the currency risks i.e. held savings both in the national and foreign currencies, mainly in the US dollars, as the role of the dollar in our economy is significant and the interests on deposits in terms of other foreign currencies are much lower and the volatility risk is higher. So, the national dram and higher interests are preferable, indeed," she said.
At present, she said, expectations from the exchange rate of the main foreign currencies are very contradictory and deposits of customers, which make up rather a high percentage in the liabilities of the banking system, are constantly being converted from one currency into another.
"Nevertheless, despite higher interests rates on the deposits in terms of the Armenian dram, the share of foreign currency deposits in total is still tangible," she said.
Banks offer their customers convertible deposits and conversion of deposit amount is possible at any time without losing the accrued interests.
"Our bank offers also other mechanisms to protect savings - intangible metal accounts and "Gold Standard" deposit. These mechanisms allow linking the customers' savings and deposits with the gold price to get additional revenue from growth of the gold prices in the international markets," Sargsyan said.
According to the Financial Rating of Armenian Banks prepared by ArmInfo Agency, Areximbank-GPB Group is among top five banks in terms of net profits from currency operations for Q1 2013 - 243.7 mln drams with a 7% growth versus the same period of 2012. Net profits from purchase-and-sale of foreign currency made up 223.7 mln drams or 92% of total. The bank is among top ten banks in terms of time deposits as of April 1 2013 - 32.9 bln drams (with a 19.2% growth versus the same period of 2012 and 11.3% for Q1 2013). Personal times deposits in the bank's total time deposits accounted for 28.1 bln drams. Time deposits in total liabilities of the bank accounted for 31%.
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