ArmInfo. European Bank for Reconstruction and Development (EBRD) for the second year in a row, this time following the results of 2019, names its trade finance partner, Armswissbank, as the most active issuing bank in Armenia. As the Bank's press service told ArmInfo, the TFP Awards ceremony, which was to be held at the annual meeting and the EBRD business forum in May 2020, had to be canceled due to the Covid-19 pandemic, but the list of winners is presented on the EBRD published on June 4. The winners of the honorary award were 27 banks, along with Armswissbank TBC (Georgia), Belinvestbank (Belarus) and JSC Bank Centercredit (Kazakhstan) are also on the list.
This award comes to attest the Bank's successful and year by year growing activity within the scope of Trade Finance with EBRD. Currently, ARMSWISSBANK has USD 22 mln limit approved by EBRD. It is noteworthy that last year the Bank, as result of its multilateral and effective cooperation with EBRD, has been granted with three other awards as well, namely;
"Most Active Issuing Bank in Armenia in 2018" at EBRD's annual meeting held in Sarajevo
"Agent For Change 2018" for its role in supporting green investments in the food industry, as result of its efficient activity in the field of renewable energy and energy efficient equipment introduction.
Special award by Frontclear for repo transactions amounting AMD 6.6 bln (USD 13.5 mln) within the framework of the Global General Repo Agreement (GMRA) concluded between the Bank and EBRD on January 2018.
The collaboration between ARMSWISSBANK CJSC and EBRD dates back to 2010. The cooperation has developed in a number of directions, particularly, within the scope of SME Lending Program, Trade Finance Program, GCF-GEFF Armenia Energy Efficiency Program and Global Master Repo Agreement (GMRA), which regulates the process of concluding repo transactions with securities in international financial markets.
The list of winners is published on EBRD website under the following link: https://www.ebrd.com/news/2020/- ebrd-tfpawards-recognise-successful-partner-banks-from-three-continents- .html?fbclid=IwAR3rN6f1rnQloWoQ9Np3Yo9n0OJMF3xfYHappGZvQ4HcnHvAoGnYABgzhTY
According to the Financial Rating of the Banks of Armenia prepared by ArmInfo IC as of January 1, 2020, Armswissbank increased its loan portfolio by 27.5% per annum. About 80% of it accounts for corporate lending, the volume of which the bank increased by 24% in 2019. About 34% of the bank's loan portfolio is credited to the industrial sector (including the energy complex), and almost 12% each to the agricultural sector, construction, and the retail sector. SME lending accounts for over 37% of Armswissbank's loan portfolio, with y-o-y growth of 27.3%. The bank completed the year 2019 with a net profit of 9 billion drams ($ 18.8 million), ensuring a y-o-y growth of 78.1%. Armswissbank is a leader in terms of efficiency ratios: the first position in terms of return on assets (ROA) and the second position in terms of return on equity (ROE).
To recall, Armswissbank CJSC was established on October 7, 2004. As of April 1, 2020, the holder of 85.53% stake in Armswissbank is HVS Holding LLC, managed by Vartan Sirmakes and registered in Luxembourg, and the remaining 12.47% are owned by FMTM Distribution Ltd, and indirect shareholder is Vartan Sirmakes and Chrono Star International Participations Group Franck Muller S.a.r.l.
To note, EBRD is a major international institutional investor. Since the start of EBRD activities in Armenia, namely since 1992, to this day 1.4 billion euros have been invested in the implementation of 180 programs in the financial, corporate, infrastructure, energy sectors. Moreover, 87% of these investments are directed to the development of private enterprise. Since 2006, EBRD has allocated a total of 26 billion euros to 38 countries around the world, where the Bank has representative offices for the transition to a green economy. The EBRD portfolio of the trade finance program currently exceeds 5 billion euros in 30 countries. In 2020, the program TFP stepped up its support by securing increased trade finance for a record 1.5 billion euros in the first five months.
