Tuesday, March 19 2019 20:04
Karine Melikyan

HSBC Bank Armenia increases efficiency and focuses on digital services

HSBC Bank Armenia increases efficiency and focuses on digital services

ArmInfo.HSBC Bank Armenia CJSC (HSBC Armenia) has strong principles of corporate social responsibility.  In line with these principles, the bank has recently held an Open door event to increase the financial literacy in community and ensure awareness of banking services and products. During this event, the bank's management presented to visitors a number of topics including effective management of savings, clients’ rights protection, management and risk assessment of banking products and cost optimization.

HSBC Armenia attaches high importance to financial literacy as one of the prerequisites of success in the modern world. HSBC Armenia’s Deputy Chief Executive Officer/Chief Risk Officer Aram Pinajyan explained in detail the activities and development plans of the bank in an interview to our ArmInfo correspondent.

 

The report on the credit risk of HSBC Armenia, published at year end 2018, indicates a reduction in the volume of non-performing loans. And judging by the sharp increase in profits (from loss making to profit), we can conclude that the bank managed to solve the problem of non-performing loans through repayments, rather than write-offs. And since the bank does not publish credit risk by economic sectors, and the dominant part of loans are accounted for by industry, trade, catering and the service sector, it would be interesting to learn about the quality of loans to these sectors.

 

You have rightly noted that in 2018 a significant reduction in the share of non-performing loans was recorded in the loan portfolio of HSBC Armenia. I would like to emphasize that this was the result of the return of a notable share of such loans, which was partially caused by improvements in the country's economy. But basically this was ensured by specialists who, by maintaining an active dialogue with problematic clients, were able to find the most efficient and profitable solutions not only for the bank, but also for the borrowers themselves.

 

As for the second part of the question related to the indicated sectors of the economy, no specific risks were recorded, and a roughly proportional reduction of this portfolio was seen across all sectors.

 

What clientele does HSBC Armenia intend to focus on in 2019 - individuals or legal entities? And what are the reasons of this?

 

As in the previous years, in 2019 as well, HSBC Armenia intends to increase its market share in three main areas - banking retail services, wholesale banking including trade finance and financial market operations. We expect growth both from cooperation with retail customers and from partnership with corporate ones. The bank will continue to actively provide international trade finance services, adhering to its long-term policy of supporting international commerce.

 

Why did HSBC Armenia reduce investments in such key sectors of economy as industry and the agricultural sector, while activating trade and services financing? And if this trend continues in 2019, what are the reasons for it?

 

I want to emphasize that according to the results of 2018, the loans placed by the bank in the industrial sector occupy the second place in terms of share in the total portfolio (about 20%).

 

Being a member of an international group, HSBC Armenia adheres to the investment policy developed by the HSBC group, which envisages greater involvement in some areas and limited participation in others. This approach is determined by the specifics of the domestic market and the prerequisites for development. In total, the bank's policy is aimed at diversifying the loan portfolio and ensuring a presence in various sectors of the Armenian economy.

 

In 2019, we consider wholesale and retail trade (referring to export and import), services (including transport and communications), industry and energy, as well as financing the purchase of residential real estate as the main areas of growth.

 

What are the main tasks (priorities) for 2019 laid down in the strategic development plan of HSBC Armenia?

HSBC Armenia will continue to follow its mission, which is maintaining the status of a leading international bank in Armenia. The goal of the bank is to participate in the development of the economy by promoting entrepreneurship, opening up new opportunities for customers and businessmen, and creating the prerequisites for development.

HSBC Armenia will continue working closely with other banks and financial institutions of the HSBC Group in order to provide customers with a wide range of quality banking services.

The bank will continue adhering to strict qualitative and quantitative criteria in the context of compliance with the law and the prevention of financial crimes (money laundering, sanctions, corruption), as well as ensuring effective management and control of operational and credit risks.

What growth of assets, credit investments, profits are you planning to ensure in 2019?

 

The goal of HSBC Armenia is to be profitable and to take a market share envisaged by the development strategy in the areas that are priority for us. As I noted earlier, the Bank seeks to promote business development and open up new opportunities for entrepreneurs, while at the same time creating strong foundations for economic development.

 

Do you feel that the customers make a shift towards remote service channels in Armenia? Is the bank giving a greater preference to these channels and what services have already become remote? Could this be the reason for the reluctance of HSBC Armenia to expand its branch network?

 

I want to note that in recent years there has been a sharp increase in the volume of remote / digital banking services.

 

One of the key areas of development for HSBC Armenia is the introduction of digital technologies. The range of digital services of the Bank includes the most popular non-cash financial transactions, such as transfers, opening of urgent deposit accounts, secure communication with the Bank. According to the latest statistics, over 57% of retail customers and over 80% of corporate clients of HSBC Armenia actively use digital banking services. This, in turn, eliminates the urgent need to expand the branch network.

POST A COMMENT
Input digits     


News
Minister: Until the end of 2019, Armenia may come close to the  inflation target of 4% (+ 1.5%)Minister: Until the end of 2019, Armenia may come close to the  inflation target of 4% (+ 1.5%)
Armenia strongly encourages tourism from the Middle Kingdom -  Implementation of UnionPay payment system is just around the cornerArmenia strongly encourages tourism from the Middle Kingdom -  Implementation of UnionPay payment system is just around the corner
Minister of Economy: According to the results of 2019, export from  Armenia will grow by about 7%.Minister of Economy: According to the results of 2019, export from  Armenia will grow by about 7%.
ID Bank redeemed its 5th tranche of USD bonds in the volume of $5mlnID Bank redeemed its 5th tranche of USD bonds in the volume of $5mln
Expert: The draft state budget of Armenia for 2020 does not create  the prerequisites for the implementation of the economic revolutionExpert: The draft state budget of Armenia for 2020 does not create  the prerequisites for the implementation of the economic revolution
Nikol Pashinyan: Double-digit growth of tourism sector will continue  in Armenia in 2020Nikol Pashinyan: Double-digit growth of tourism sector will continue  in Armenia in 2020
Economist: Underfulfillment of capital expenditures by the state  threatens economic recovery as early as in 2020-2021Economist: Underfulfillment of capital expenditures by the state  threatens economic recovery as early as in 2020-2021
Pashinyan:  Armenia will close the 2019 with economic growth within  7%, against 4.9% budgeted  Pashinyan:  Armenia will close the 2019 with economic growth within  7%, against 4.9% budgeted  
Three programs to increase the birth rate will be launched in Armenia  starting from 2020Three programs to increase the birth rate will be launched in Armenia  starting from 2020
Grape procurement process completed in Tavush region of ArmeniaGrape procurement process completed in Tavush region of Armenia
Deputy Foreign Minister of Chile: High-level cooperation with Armenia  in the economic sector is a necessityDeputy Foreign Minister of Chile: High-level cooperation with Armenia  in the economic sector is a necessity
Result exceeded expectations! Arshaluys Margaryan tells how Armenian financial authorities promoted Armenian Eurobonds in international marketsResult exceeded expectations! Arshaluys Margaryan tells how Armenian financial authorities promoted Armenian Eurobonds in international markets
Schneider Group Company proposes to hold a Schneider Group Company proposes to hold a "From Lisbon to  Vladivostok" conference   in Armenia
Vladimir Zharikhin does not exclude the possibility of opening  freight traffic through the Abkhaz railwayVladimir Zharikhin does not exclude the possibility of opening  freight traffic through the Abkhaz railway
At a forum in Chisinau on topic At a forum in Chisinau on topic "Strength of financing in national  currency", CBA representative introduced Armenian experience to  participants
Armenia and World Bank discuss further areas of cooperationArmenia and World Bank discuss further areas of cooperation
Ardshinbank: another step towards customerArdshinbank: another step towards customer
VTB Bank (Armenia) opened its 72nd branch -VTB Bank (Armenia) opened its 72nd branch -"Ararat"
EFSE provides multi-currency loan to ARARATBANKEFSE provides multi-currency loan to ARARATBANK
Executive Director of Armswissbank Gevorg Machanyan received the  honorary title  Executive Director of Armswissbank Gevorg Machanyan received the  honorary title  "Friend of Echmiadzin"
Statistical Committee: Production of alcoholic beverages grows in  ArmeniaStatistical Committee: Production of alcoholic beverages grows in  Armenia
In the GDP structure of Armenia, the service sector continues to lead  in terms of growthIn the GDP structure of Armenia, the service sector continues to lead  in terms of growth
EDB forecasts economic growth in Armenia at the end of 2019 at 6%EDB forecasts economic growth in Armenia at the end of 2019 at 6%
"Contour Global Hydro Cascade" company will make additional AMD 27.5  billion investment in  modernization of Vorotan Cascade of HPP 
In January-August 2019, the metallurgical industry of Armenia  launched a trend towards growthIn January-August 2019, the metallurgical industry of Armenia  launched a trend towards growth
Freight volume in Armenia in January-August 2019 decreased by 54%  with the growth of passenger transportation by 4.3%Freight volume in Armenia in January-August 2019 decreased by 54%  with the growth of passenger transportation by 4.3%
Revenues of Armenia`s communications sector in January-August 2019  accelerated growthRevenues of Armenia`s communications sector in January-August 2019  accelerated growth
TPL system in Armenia to use digital technologiesTPL system in Armenia to use digital technologies
EBRD to provide EUR 4.6 million grant to Armenia to continue Gyumri  city road rehabilitation programEBRD to provide EUR 4.6 million grant to Armenia to continue Gyumri  city road rehabilitation program
Aluminum foil production declines in ArmeniaAluminum foil production declines in Armenia


Exchange rates
14.10.2019
RUB7.420.00
USD476.44-0.29
EUR525.850.49
GBP598.272.21
CAD360.341.06
JPY44.05-0.04
CNY67.37-0.03
CHF478.791.15


Experts
Head of PSRC: Whatever the agreement, the domestic tariff is  dependent on the price at the borderHead of PSRC: Whatever the agreement, the domestic tariff is  dependent on the price at the border
IMF: Armenia needs to achieve sustainable inclusive growthIMF: Armenia needs to achieve sustainable inclusive growth
Artur Atoyan: Problems of fish farmers are solved by the communist  method, that is, they are not solved at allArtur Atoyan: Problems of fish farmers are solved by the communist  method, that is, they are not solved at all
HSBC Bank Armenia digitalizes cooperation with retail clients HSBC Bank Armenia digitalizes cooperation with retail clients 
AmRating agency in cooperation with European Rating-Agentur Expert RA  GmbH has issued regular research on Armenia`s banking systemAmRating agency in cooperation with European Rating-Agentur Expert RA  GmbH has issued regular research on Armenia`s banking system
Yulia Ustyugova: Armenia can get access to IMF “insurance line”Yulia Ustyugova: Armenia can get access to IMF “insurance line”
Armand Arton: The question whether citizenship should be granted in  return for investments is rather rhetoricalArmand Arton: The question whether citizenship should be granted in  return for investments is rather rhetorical
Former head of the Ministry of Finance: <Confrontation> with Lydian may cost much to ArmeniaFormer head of the Ministry of Finance: with Lydian may cost much to Armenia
Vardan Aramyan: It will be unreasonable if the government goes to revise the allowable national debt ceiling in GDPVardan Aramyan: It will be unreasonable if the government goes to revise the allowable national debt ceiling in GDP
HSBC Bank Armenia increases efficiency and focuses on digital servicesHSBC Bank Armenia increases efficiency and focuses on digital services
Bulgarian Minister: The level of Armenian-Bulgarian economic  cooperation is still unsatisfactoryBulgarian Minister: The level of Armenian-Bulgarian economic  cooperation is still unsatisfactory
Expert: Recruitment market in Armenia from the point of view of  supply and demand is sleepingExpert: Recruitment market in Armenia from the point of view of  supply and demand is sleeping
Expert: Despite the adequacy of Armenian banks` capitals, the  opportunities for its optimal use are severely limitedExpert: Despite the adequacy of Armenian banks` capitals, the  opportunities for its optimal use are severely limited
Association of Organic Agriculture is being created in ArmeniaAssociation of Organic Agriculture is being created in Armenia
Pailak Tadevosyan: Governments change in Armenia, but taxation  approaches do not changePailak Tadevosyan: Governments change in Armenia, but taxation  approaches do not change
Rouben Indjikian: Everyone should follow the established unified and fair rules of the gameRouben Indjikian: Everyone should follow the established unified and fair rules of the game
Mher Arakelyan:  Armenia`s payment business has great prospectsMher Arakelyan:  Armenia`s payment business has great prospects
Rating-Agentur Expert RA GmbH and AmRating issued an industry report  on Armenia`s banking systemRating-Agentur Expert RA GmbH and AmRating issued an industry report on Armenia`s banking system
Igor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care ofIgor Nazaruk: Each planted sprout has the right to a successful prospect if it is cherished and taken care of
Ara Khzmalyan: Armenia is comfortable to Russian touristAra Khzmalyan: Armenia is comfortable to Russian tourist

Search by date

Government Bonds

Issue volume

10 billion

Volume of T-bills for placement

200 million

Volume of submitted competitive applications

200 million

Volume of satisfied bids

200 million

Yield at cut-off price

 5.8314%

Maximum yield

 5.8314%

Мinimum yield

 5.8314%

Weighted average yield

 5.8314%

Number of participants

2

The maturity date of T-bills

03.02.2020

ArmEx

 

СПРОС (Покупка)

USD

Средневзв. Цена

482,00

ПРЕДЛОЖЕНИЕ (Продажа)

  USD

Средневзв. Цена

-

СДЕЛКИ

USD

Цена откр.

482,00

Цена закр.

482,00

Мин. Цена

482,00

Макс. Цена

482,00

Ср/взв. Цена

482,00

-0.16

Кол-во сделок

1

Объем (инвал.)

200 000

0бъем (драм)

96 400 000

Commented
$ 270 Million to be invested in the construction of the first  skyscraper in Yerevan$ 270 Million to be invested in the construction of the first  skyscraper in Yerevan
The AGBU Women Entrepreneurs Program Launched in Artsakh: FRUITFUL  ARMENIA Foundation is the partnerThe AGBU Women Entrepreneurs Program Launched in Artsakh: FRUITFUL  ARMENIA Foundation is the partner
Forecast: Armenia has good prospects for expanding its presence in  the Polish marketForecast: Armenia has good prospects for expanding its presence in  the Polish market
Armenian government`s delegation headed by Prime Minister will take  part in the St. Petersburg International Economic Forum on June 6-7Armenian government`s delegation headed by Prime Minister will take  part in the St. Petersburg International Economic Forum on June 6-7
Concessionaire of Zvartnots International Airport promises to become  one of the best operators in the worldConcessionaire of Zvartnots International Airport promises to become  one of the best operators in the world
Arthur Javadyan: Central banks are not responsible for economic  growthArthur Javadyan: Central banks are not responsible for economic  growth
Forecast: Electricity exports to the Middle East through Iran are a  key component of Armenia`s geo- economic strategyForecast: Electricity exports to the Middle East through Iran are a  key component of Armenia`s geo- economic strategy
ArmInfo IC: In Armenia,  CMTPL loss ratio increased up to 64.5% in Q1  2019ArmInfo IC: In Armenia,  CMTPL loss ratio increased up to 64.5% in Q1  2019
From January 1, 2020, the cost of customs clearance of cars from  non-EEU countries in Armenia will increase by at least 4-5 fold:  whether the market for used cars is going upFrom January 1, 2020, the cost of customs clearance of cars from  non-EEU countries in Armenia will increase by at least 4-5 fold:  whether the market for used cars is going up
Overdue loans accelerate growth in banking system of ArmeniaOverdue loans accelerate growth in banking system of Armenia
RA Prime Minister: European Union is not ready to finance 100% of  development programs implementation in ArmeniaRA Prime Minister: European Union is not ready to finance 100% of  development programs implementation in Armenia
Converse Bank offers online loans at a low effective interest rateConverse Bank offers online loans at a low effective interest rate
Renco company will attract additional shareholders and partners to  the project of building a new thermal-power plant in ArmeniaRenco company will attract additional shareholders and partners to  the project of building a new thermal-power plant in Armenia
T.Avinyan: The Government is open for cooperation and encourages  active dialogue and interaction in all areas T.Avinyan: The Government is open for cooperation and encourages  active dialogue and interaction in all areas 
Agreement on construction of a new unit with combined gas cycle  signed in YerevanAgreement on construction of a new unit with combined gas cycle  signed in Yerevan
Veolia Jur: Regulatory charges are false and unfoundedVeolia Jur: Regulatory charges are false and unfounded
Armenian Prime Minister: We are gaining momentum for economic takeoffArmenian Prime Minister: We are gaining momentum for economic takeoff
Through the mobile banking application of Ardshinbank you can get a  loan in seconds.Through the mobile banking application of Ardshinbank you can get a  loan in seconds.
By the end of 2018, By the end of 2018, "Galburdjian Group" will launch the production of  sesame oil in Armenia
Expert: Armenia has a problem with effective use of water resources,  rather than small hydropower stationsExpert: Armenia has a problem with effective use of water resources,  rather than small hydropower stations
Investment forum Investment forum "Energy Week 2018" to be held in Armenia
Expert: It is necessary to start implementing the program for the  construction of a new nuclear unitExpert: It is necessary to start implementing the program for the  construction of a new nuclear unit
The Armenian government suggests raising the minimum pension by 60%The Armenian government suggests raising the minimum pension by 60%