Friday, September 30 2016 16:34
Alina Hovhannisyan

Yuri Gusev: No more than 10% of restructured loans in Armenia become overdue again

Yuri Gusev: No more than 10% of restructured loans in Armenia become overdue again

ArmInfo. VTB Bank (Armenia) satisfies one in two applications of individuals for loan restructuring, Director General, Chairman of Directorate of VTB Bank (Armenia) Yuri Gusev said at today's press conference in Yerevan, when replying to ArmInfo's question.

Zadornov said that at present nearly 1.2 thsd out of the 2.5 thsd applications have been satisfied. No more than 10% of the restructured loans become overdue again, which he considers to be a good indicator demonstrating the Bank's correct strategy on customer service. In this context, Gusev pointed at the situation on the Russian market where the specified customer segment makes up 35%, which is quite an admissible indicator. 

Overall, the banker takes a positive view of the situation on the Armenian market of retail lending. "It is very important to us to maintain close ties with the customers so that when coming across payment problems the borrowers could apply to us and could be sure that the Bank would support them," he said.  However, he noted, it would be wrong to say that the major part of the overdue loans is restructured. "Part of the problems is settled by other instruments in the Bank," he said.

Gusev pointed out that VTB Bank (Armenia) will focus on further development of retail business. "The level of NPLs in the loan book of VTB Bank (Armenia) is now the same as in 2013 - 5% and this demonstrates that we can exert additional efforts here. The matter concerns not only development of lending, but also the need to use the best practices of the Russian market from the viewpoint of integrated customer service in terms of all products and services, including bankcards and acquiring," Gusev stressed.  When asked by ArmInfo about the structure of revenues from retail, Gusev replied that the level of interest income from retail business is quite high - about 90%, but the ratio will be changing: the structure will become more balanced and the share of non-interest income will be increased through technological development and new products. He said that the Bank's customer base consists of 300 thsd clients, 70% of which are loyal and low-risky. In the meantime, he thinks one of the key tasks of further activities is to recover the overdue loans.

According to the Financial Rating of Armenian Banks by the Agency of Rating Marketing Information (ArmInfo), VTB Bank (Armenia) is traditionally among the leaders of the Armenian banking system in terms of key parameters. As of 1 July 2016, the Bank's total capital amounted to 41.2 bln AMD (5th position), assets - 278.3 bln AMD (4th position), lending - 186.4 bln AMD (5th position), personal time deposits - 92 bln AMD (4th position), corporate call liabilities - 39.7 bln AMD (3rd position). The Bank holds the 5th position in terms of corporate lending - 107.4 bln AMD, and the 3rd position in terms of retail lending - 78.8 bln AMD. The share of NPLs (unrecoverable loans inclusive) in the total loan book of VTB Bank (Armenia) grew from 16.9% to 29.14% over year, while the share of NPLs in the consumer lending segment in the total loan book dropped from 3.5% to 3.1%. The Bank has the largest branch network (67 branches) in Armenia. VTB Bank (Armenia) joined VTB Group in April 2004. VTB Bank OJSC, the second largest bank in Russia, is the sole owner of VTB Bank (Armenia).

POST A COMMENT
Input digits     


News
Leasing EXPO -2024 officially opened in YerevanLeasing EXPO -2024 officially opened in Yerevan
Araratbank to double leasing portfolio by end of 2024Araratbank to double leasing portfolio by end of 2024
Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis 
Economy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s productsEconomy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s products
Info about IT specialists leaving Armenia en masse has nothing to do  with reality - premierInfo about IT specialists leaving Armenia en masse has nothing to do  with reality - premier
WB improves Armenia`s   economic growth forecast for 2024 from 4.7%  to 5.5% WB improves Armenia`s   economic growth forecast for 2024 from 4.7%  to 5.5% 
Government is ready to share risks with agricultural insurersGovernment is ready to share risks with agricultural insurers
EIB to issue loan under energy efficiency programme to Armenia EIB to issue loan under energy efficiency programme to Armenia 
Deadline for filing personal income declarations in Armenia may be  extendedDeadline for filing personal income declarations in Armenia may be  extended
ADB intends to expand its areas of activity in ArmeniaADB intends to expand its areas of activity in Armenia
ADB forecasts 5.7% economic growth for Armenia in 2024ADB forecasts 5.7% economic growth for Armenia in 2024
Conversebank to present its Converse Leasing product at annual  Leasing ExpoConversebank to present its Converse Leasing product at annual  Leasing Expo
By rebranding, INGO Armenia IC begins new stage of developmentBy rebranding, INGO Armenia IC begins new stage of development
Some countries refusal to service Russian Mir bank cards against  common interests - Elvira NabiullinaSome countries refusal to service Russian Mir bank cards against  common interests - Elvira Nabiullina
USAID to invest additional $33mln in Armenia`s economy USAID to invest additional $33mln in Armenia`s economy 
Idplus Bonuses in Idram&IDBank ApplicationIdplus Bonuses in Idram&IDBank Application
Deputy PM: we are ready for any assistance to contribute cargo  aviation establishmentDeputy PM: we are ready for any assistance to contribute cargo  aviation establishment
Mkhitar Hayrapetyan on TV broadcasting agreement with RF: If our  proposals are not taken into account, we do not rule out possibility  of terminating agreement unilaterallyMkhitar Hayrapetyan on TV broadcasting agreement with RF: If our  proposals are not taken into account, we do not rule out possibility  of terminating agreement unilaterally
Armenia, Iran discuss organization of joint production in various  branches of economy Armenia, Iran discuss organization of joint production in various  branches of economy 
ADB ready to fund northern section of Sisian-Kajaran highway of  North-South transport corridor  ADB ready to fund northern section of Sisian-Kajaran highway of  North-South transport corridor  
Armenia`s Ministry of High-Tech Industry developing sectoral strategy Armenia`s Ministry of High-Tech Industry developing sectoral strategy 
Armenia`s footwear exports to Russia 11 times up Armenia`s footwear exports to Russia 11 times up 
EDB sets course for digital future of transportation at joint EEC and  ESCAP eventEDB sets course for digital future of transportation at joint EEC and  ESCAP event
Team`s Next Generation Networ is already available in AshtarakTeam`s Next Generation Networ is already available in Ashtarak
Kazakhstan`s potential exports to Armenia total $350mln - minister Kazakhstan`s potential exports to Armenia total $350mln - minister 
Armenia`s economy to face crisis if Moscow severs economic ties with  Yerevan - ex-premier Armenia`s economy to face crisis if Moscow severs economic ties with  Yerevan - ex-premier 
Acquisition of Ameriabank by BOGG PLC int`l financial group completedAcquisition of Ameriabank by BOGG PLC int`l financial group completed
Armenian service sector generated revenue of $1.2 billion in first  two monthsArmenian service sector generated revenue of $1.2 billion in first  two months
EEC: EAEU common electricity market is at high level of readinessEEC: EAEU common electricity market is at high level of readiness
Armenia`s metallurgical industry increased production volumes by 37%  in first 2 monthsArmenia`s metallurgical industry increased production volumes by 37%  in first 2 months
Idram and IDBank participated in the signing ceremony of the Declaration of Women`s Empowerment PrinciplesIdram and IDBank participated in the signing ceremony of the Declaration of Women`s Empowerment Principles
US supports building of strong transport corridor from Turkiye  to  Central AsiaUS supports building of strong transport corridor from Turkiye  to  Central Asia
EFSD contributes to modernization of Armenia`s irrigation systemEFSD contributes to modernization of Armenia`s irrigation system
ADB to issue EUR 60.09mln loan to Armenia for urban development  programmes ADB to issue EUR 60.09mln loan to Armenia for urban development  programmes 
EIB to issue EUR 25mln loan to Armenia for 2nd phase of energy  efficiency programme in Yerevan EIB to issue EUR 25mln loan to Armenia for 2nd phase of energy  efficiency programme in Yerevan 
Armenia`s clothing exports to Russia 1.5 times up Armenia`s clothing exports to Russia 1.5 times up 
Armenia needs alternative if leaves EAEU - expert Armenia needs alternative if leaves EAEU - expert 
Diagnosis from Prime Minister: Armenia`s irrigation system is deadDiagnosis from Prime Minister: Armenia`s irrigation system is dead
CECC business mission to visit Armenia  CECC business mission to visit Armenia  
Armenia joins International Solar AllianceArmenia joins International Solar Alliance
Armenian NPP to be under maintenance repair Armenian NPP to be under maintenance repair 
Brett King: Banks should be ready to implement AIBrett King: Banks should be ready to implement AI
Expert: There is no alternative to digital transformationExpert: There is no alternative to digital transformation
Arman Barseghyan: technically, Ameriabank is a digital bank Arman Barseghyan: technically, Ameriabank is a digital bank 
1.2% y-o-y inflation in Armenia`s consumer market in March 2024 was  caused by drop in food prices 1.2% y-o-y inflation in Armenia`s consumer market in March 2024 was  caused by drop in food prices 
Zakharova assures: consequences of stopping service of MIR cards in  Armenia to be higher than hypothetical damage of Western restrictionsZakharova assures: consequences of stopping service of MIR cards in  Armenia to be higher than hypothetical damage of Western restrictions
Amulsar`s development to start in late 2024 or early 2025: Babken  TunyanAmulsar`s development to start in late 2024 or early 2025: Babken  Tunyan
Armenia`s economic authorities ready to reduce size of proposed state  duty on export of gold, platinum and palladium barsArmenia`s economic authorities ready to reduce size of proposed state  duty on export of gold, platinum and palladium bars
Armenia`s government proposes new mechanism top encourage honest  taxpayers Armenia`s government proposes new mechanism top encourage honest  taxpayers 
Delay in Armenia-Georgia power line construction directly related to  Yerevan`s Delay in Armenia-Georgia power line construction directly related to  Yerevan`s "enclave policy" - professor 
4.017.648 Drams to My Forest Armenia: April Beneficiary of The Power of One Dram is 4090 Foundation4.017.648 Drams to My Forest Armenia: April Beneficiary of The Power of One Dram is 4090 Foundation
AraratBank: General Partner of Face-to-Face Regional ForumAraratBank: General Partner of Face-to-Face Regional Forum
"Ucom", "Team Telecom" and "Rostelecom" also turned off broadcast of  TV show with participation of Vladimir Solovyov
Armenia`s State Revenue Committee to tighten rules for duty-free  import of goods for personal use  Armenia`s State Revenue Committee to tighten rules for duty-free  import of goods for personal use  
CBA gives preliminary consent to purchase of Ameriabank by Bank of  GeorgiaCBA gives preliminary consent to purchase of Ameriabank by Bank of  Georgia
Government is working to diversify sales markets so as not to depend  on one market - MPGovernment is working to diversify sales markets so as not to depend  on one market - MP
Armenia intends to join electronic information exchange protocol  between tax authorities of EAEU statesArmenia intends to join electronic information exchange protocol  between tax authorities of EAEU states
Deputy Minister of Labor and Social Affairs assures: There is no  limit to number of beneficiaries of Artsakh employment program in  ArmeniaDeputy Minister of Labor and Social Affairs assures: There is no  limit to number of beneficiaries of Artsakh employment program in  Armenia
Kremlin does not regard Armenian banks` refusal to service Russian  Mir cards as unfriendly stepKremlin does not regard Armenian banks` refusal to service Russian  Mir cards as unfriendly step
Yerevan hosts discussion of Armenia`s EAEU chairmanship  Yerevan hosts discussion of Armenia`s EAEU chairmanship  
Read more


Exchange rates
12.04.2024
RUB4.210.03
USD393.842.38
EUR419.32-0.72
GBP491.120.27
CAD286.450.42
JPY25.700.13
CNY54.420.33
CHF431.131.94