Friday, December 12 2014 17:51
HSBC Bank Armenia and Italian Embassy in Armenia hold 13th Trade Finance Academy workshop
ArmInfo. On December 12, HSBC Bank Armenia held the 13th Trade Finance Academy workshop. During the event, HSBC Bank Armenia CEO Thies Clemenz said that this time the workshop has been organized jointly with the Italian Embassy in Armenia. He expressed confidence that the workshop will contribute to development of the two countries' trade and economic relations. Clemenz pointed out that when entering foreign markets Armenian businessmen come across the same problems as the businessmen worldwide. In particular, he mentioned the unfamiliar business environment, the difference between business legislations and trade documents, lack of experience in foreign markets, exchange rate fluctuations, and doubts about return on investment. He thinks that Armenian companies, like all the other companies, constantly have to make a choice between expanding their business in the domestic market, where the situation is familiar and clear, and entering foreign markets, where they cannot avoid legal and logistic problems and different trade culture. In this light, Thies Clemenz said that the event is very useful for the Armenian entrepreneurs wishing to enter foreign markets. He recalled that in 2014 HSBC was recognized as "The Best Global Trade Finance Bank" by Global Trade Review (GTR) magazine. This happened because most of the customers voted for HSBC.
Maurizio Crociatelli, Vice Ambassador of Italy to Armenia, stressed the significance of such events and pointed out that according to the latest data, Italian-Armenian trade is continuously growing. He presented the development trends for the past few years. Italy is providing its entrepreneurs with instruments boosting the relationship with other countries, including Armenia. Italy does not consider Armenia a risk-related country, he said. Italy is the seventh biggest trade partner of Armenia. According to the statistics, Italy's share in Armenia's foreign trade turnover in Jan-Oct 2014 made up 3.8%. In Jan-Oct 2014, the commodity turnover between Armenia and Italy totaled $183.4 mln, 19.7% more than in Jan-Oct 2013.
Kamo Margaryan, Head of Global Trade and Receivables Finance at HSBC Bank Armenia CJSC, said that about 37% of the documentary letters of credit issued by the Bank in 2014 to finance equipment import falls on Italy, with the total amount being $8 mln. From Italy Armenia mostly imports industrial equipment, belt lines and clothes. In 2013 HSBC Bank Armenia's trade finance rose by 14% as compared to 2012 and totaled 18 bln AMD. The revenues from the trade finance grew by 11%. In 2013, HSBC Bank Armenia occupied 37% of the Armenian trade finance market. In the given portfolio of the Bank, imports make up about 90%, with exports being 10%. In Jan-Jun 2014 versus Jan-Jun 2013 the Bank's trade finance increased more than twofold (4-fold growth in LCs).
To note, HSBC Bank Armenia launched the Trade Finance Academy in 2010. The Small and Medium Entrepreneurship Development National Centre of Armenia (SMEDNC) was a co-initiator. Nearly 300 export- and import-oriented enterprises have participated in the workshops. HSBC Group has been engaged in trade finance since 1865 and seeks to become a world leader in trade finance (at the moment it covers 10% of the market). HSBC's presence in both developed and developing countries provides access to 87% of the international market of trade finance. HSBC customers can make such transactions in over 60 countries. HSBC Group has 6,200 offices on 5 continents and makes 1mln USD trade transactions worldwide per minute.
According to the Financial Rating prepared by the Agency of Rating Marketing Information (ArmInfo), as of 1 October 2014, the assets of HSBC Bank Armenia amounted to 641.2 mln (5th position in the market), with a 14.7% year-over-year growth and a 6.4% growth in Q3 2014. The Bank's lending totaled 476.1 mln (4th position), with a 37.1% y-o-y rise and a 7.9% rise in Q3 2014. In the Bank's loan book, over 76% is lending to economy sectors - $362.8 mln (2nd position in the market), with a 33.2% y-o-y rise and a 5.1% rise in Q3 2014. The loan book mostly focuses on industry - 27.5% and trade - 24.2% (2nd position). SME lending totaled $257 mln (64.4% of the loan book, 1st position). As of 1 Oct 2014, the Bank's total capital was $115 mln (3rd position). In Jan-Sept 2014, the Bank's net profit totaled $13.7 mln (1st position). The shareholders of HSBC Bank Armenia are HSBC Europe B.V. (70%) and Wings Establishment (30%).
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