HSBC Bank Armenia announces start of "Big Family" mortgage program

ArmInfo. HSBC Bank Armenia announced the launch of the "Big Family" mortgage  program, in which  the effective interest rate for borrowers on a mortgage loan will be  reduced by 0.25% for each child born or adopted, and for three  children the maximum reduction is envisaged by 0.75 % This was  announced on September 14 at a press conference dedicated to the  launch of this program, said Paul Edgar, Chief Executive Officer of  HSBC Bank of Armenia.

According to P. Edgar, the program contains both financial and social  benefits. In particular, the financial advantage from the point of  view of the client is to reduce the interest rate on the mortgage  loan, and the social advantage is to help families waiting for  replenishment, but having a mortgage loan, for which we provide  support under this program in the form of reducing the burden in  fulfilling loan obligations. "HSBC Bank Armenia, within the framework  of corporate social responsibility, decided through this program to  help those borrowers who are waiting for replenishment in the family.  HSBC Bank Armenia adheres to a client-oriented policy aimed at  supporting the client in the implementation of a major event in his  life, such as the birth of a child Thus, HSBC Bank Armenia makes its  contribution to improving the demographic situation in the country,  "ArmInfo P. Edgar answered the question.

He noted that given the focus of the Big Family program, clients with  children were invited to the presentation event, during which it was  planned to present them with a certificate of participation in this  program. "And of course, the symbol of replenishment of the family is  depicted on the certificate - a stork is a harbinger of the birth of  a child," P. Edgar noted.

Migran Muradyan, Director of HSBC Bank Armenia's Retail Banking  Department, answering ArmInfo's question, explained that within the  framework of this proposal, the mortgage rate is reduced from the  current 11% per annum, but 0.75% per three children are considered a  restrictive threshold 0.25% reduction for each. Moreover, the reduced  rate will be valid throughout the entire period of the mortgage  agreement.  "The reduction in the mortgage rate under the Big Family  program begins to operate on September 16, 2019. Mortgage borrowers  who have a child born or adopted after September 16, 2016 need to  submit an application with the attached birth / adoption certificate,  and those of our clients who are already expecting a family  replenishment today and who are planning to have a baby in the  future, will automatically become the beneficiaries of this program.  families waiting for replenishment, and therefore we decided to  launch a targeted support program for them. HSBC Bank Armenia,  adhering to the principles of corporate social responsibility and  building stable and long-term relationships, puts customer focus at  the forefront, " M.  Muradyan said.

Pleasant surprises awaited the customers and their children invited  to the bank's presentation event - the performance of the  clown-juggler, an entertaining program for children, refreshments,  and gifts. At the culmination of the event, M. Muradyan presented the  clients awaiting replenishment with the certificate of beneficiary of  the "Big Family" program.

According to the Financial Rating of the Banks of Armenia as of July  1, 2019, prepared by ArmInfo IC, HSBC Bank Armenia's assets amounted  to $ 410.5 million, in the structure of which credit investments  accounted for over 64% or $ 263.4 million. Corporate loans dominate  in the bank's loan portfolio - about 71%, but in terms of growth  rates, retail lending is ahead of 24.6% y / y. Moreover, in the  structure of the last 58.8% or $ 34.3 million it is concentrated on  mortgage loans, with an annual growth of 12.9%, of which 7.6% growth  was recorded only for the II quarter. In terms of mortgage lending,  HSBC Bank Armenia holds the 5th position in the market. Mortgages  account for 13% of the bank's loan portfolio (versus 10.1% a year  earlier), and Bank Armenia covers 5.4% of the total mortgage loans in  the HSBC banking sector (versus 6.5% a year earlier). It is  noteworthy that almost the entire volume of the HSBC Bank Armenia  mortgage portfolio is working loans (standard group). HSBC Bank  Armenia completed the first half of 2019 with a net profit of $ 2.8  million, the bulk of which the bank secured for the II quarter. In  annual and quarterly terms, the bank managed to increase its net  profit by several times.  It should be noted that HSBC Bank Armenia,  representing the HSBC Bank plc Group in Armenia, has been operating  since June 20, 1995. HSBC Bank Armenia shareholders are HSBC Europe  BV - 70% and Wings Establishment - 30%. 7 branches of the bank are  located only in Yerevan. And this small number of branches in the  case of HSBC Bank Armenia is explained by the inherent nature of a  foreign bank, the very active use of remote methods of customer  service and the digital transformation of banking services.