ArmInfo. The decision to sell HSBC Armenia follows a strategic review, and aligns with the HSBC Group strategy to redeploy capital from less strategic or low-connectivity businesses into higher-growth opportunities globally. This is stated in the official News Release of HSBC Armenia Bank regarding its sale to the largest Armenian banking group, Ardshinbank CJSC.
As the HSBC holding said in a statement, "The decision to sell HSBC Armenia follows a strategic review, and aligns with the HSBC Group strategy to redeploy capital from less strategic or low- connectivity businesses into higher-growth opportunities globally.
HSBC Armenia will continue to serve its customers as usual until the transaction completes, which is expected within the next 12 months.
As part of this transaction, all staff members of HSBC Armenia will transfer to Ardshinbank at completion. The transfer will include all customer relationships held by HSBC Armenia at that time."
Meanwhile, as noted in Ardshinbank's statement, Latif & Company (L&C) is acting as exclusive financial advisor to Ardshinbank and Latham & Watkins is acting as legal advisor.
According to the ArmInfo rating service, Ardshinbank's assets totaled $4.04 at the end of 2023, taking a leading place in the Armenian market by this criterion. The size of total credit investments and other loans totaled $1.7 billion. The total capital of the bank was $472.7 million (2nd place). Total liabilities totaled $3.6 billion (1st place), of which $2.4 billion are liabilities to clients (1st place). Ardshinbank completed 2023 with a net profit of $154.8 million.
According to the ArmInfo rating, the assets of HSBC Armenia totaled $719.7 million at the end of 2023 (12th place). Total loan investments and other loans totaled 456.3 million dollars. The total capital of the bank is $149.8 million. Total liabilities are $569.9 million, of which $504.9 million are liabilities to clients. HSBC Bank Armenia completed 2023 with a net profit of $27.3 million, with a y-o-y growth of 38%.
Until 2022, the shareholders of HSBC Armenia were HSBC Europe B.B. with a 70% share in the capital and the Wings Establishment with a 30% share, owned by English businessman of Armenian origin Vache Manukyan. The latter sold his share in the first quarter of 2022. HSBC opened its branch in Armenia in 1996.
