{"id":32972,"date":"2012-02-06T13:12:06","date_gmt":"2012-02-06T13:12:06","guid":{"rendered":"https:\/\/armbanks.am\/2012\/02\/06\/234733\/"},"modified":"2024-12-15T12:55:09","modified_gmt":"2024-12-15T12:55:09","slug":"hsbc-bank-armenia-is-best-bank-in-2011-by-size-of-profit","status":"publish","type":"post","link":"https:\/\/armbanks.am\/en\/2012\/02\/06\/32972\/","title":{"rendered":"HSBC Bank Armenia is best bank in 2011 by size of profit"},"content":{"rendered":"

Exclusive interview with Astrid Clifford, Chief Executive Officer of\u00a0 HSBC Bank Armenia<\/a>
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ARKA – Ms. Clifford, how would you assess the bank\u2019s performance in 2011?
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Astrid Clifford –<\/strong> Last year was very successful.\u00a0Profit before tax amounted to 8.3 billion drams, almost a 50 percent increase compared to 2010, which also was quite successful.\u00a0By this indicator we are the best bank in Armenia.\u00a0Our return on equity rate was 24 percent, a very high rate\u00a0The bank’s assets amounted to 179 billion drams, having increased by 23.5 percent from the beginning of the year, liabilities saw a 24 percent rise to around 149 billion drams, our liabilities to clients totaled 120 billion drams, having increased by 14\u00a04 percent.\u00a0The total capital exceeded 30 billion drams, a 23 percent increase as compared with the beginning of the year while the outstanding loan portfolio amounted to 108 billion drams, having increased by 26 percent. The bank was very active in lending market. In particular, the volume of corporate loans amounted to about $100 million, and loans to individuals to about $10 million.\u00a0The Bank also sold 2.5 thousand Casco, health, home and car insurances HSBC Bank was named the best bank in Armenia by the British The Banker Magazine.<\/p>\n

ARKA – HSBC Bank Armenia is among top Armenian banks in terms of a number of indicators and an undisputed leader by size of liabilities and profit.\u00a0How do you manage to maintain the plank so high in conditions of tough competition?
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Astrid Clifford \u2013 <\/strong>There is indeed a very tough competition.\u00a0In an effort to attract new customers, the banks reduce lending rates and increase rates on deposits.\u00a0But still we remain the market leader by size of deposits holding 14% -15% of the market.\u00a0We’re not trying to keep up with the market by reducing the rates, our competitive edge is our high quality services.\u00a0Our customers should receive the highest services and be happy. Therefore, we do not just lend them money, we are in a constant touch with them to help run their businesses and provide them with consulting. Our leading position by size of deposits is due to a large extent to HSBC\u2019s image, so it is very important to maintain it, and we do it by health index (a comprehensive method of studying the brand).\u00a0As for high profit rate, I would like to note that we do not want to achieve it at any cost.\u00a0We are very careful in choosing projects that are really profitable.<\/p>\n

ARKA \u2013 In 2011 HSBC Bank Armenia introduced the “Sunday Banking.”\u00a0How effective was it?
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Astrid Clifford –<\/strong> This idea has been materialized as a pilot program in connection with the 15th<\/sup> anniversary of the bank\u2019s operations in Armenia, and the result surpassed all our expectations.\u00a0The number of clients over the weekend was a little lower than on weekdays.\u00a0In the future we will offer banking on Sundays but not as often as it requires additional costs and resources.<\/p>\n

ARKA – HSBC Bank Armenia\u2019s ATMs resumed last year servicing Visa, MasterCard and local ArCa cards.\u00a0What results do you have?
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Astrid Clifford – <\/strong>It was very important for us to service these types of cards, so we resumed it in August and September and by the end of the year the cards were used to make $1 million worth transactions.\u00a0In 2011 the bank issued more than 20,000 cards, including 17,800 banking cards and 2,400 credit cards<\/a>.\u00a0The figure represented a 38% rise from 2010, when the bank issued a total of 14,600 cards, of which 3,600 were credit cards.<\/p>\n

ARKA – What Armenian economy sectors are the priorities of HSBC Bank Armenia lending?
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Astrid Clifford –<\/strong> Our priorities have not changed much.\u00a0Consumer, car and mortgage loans<\/a> for corporate customers. With regard to commercial lending, we provide a wide range of services to companies in various economic sectors.\u00a0HSBC Bank Armenia is also very active in lending to companies engaged in exports and imports operations, which is natural given the presence of the HSBC Group in more than 80 countries.\u00a0In general, cooperation with companies at foreign markets is in tune with the global policy of HSBC. Today, the outstanding credit portfolio of the bank is worth $280 million.\u00a0We expect it to grow by another $60-100 million in 2012.<\/p>\n

ARKA – What is the proportion of delinquent loans?<\/strong><\/p>\n

Astrid Clifford \u2013 <\/strong>Delinquent loans account for 3.7%, of which 3.2% are commercial loans.\u00a0We are not talking about non-repayment.\u00a0Simply, these borrowers have temporary difficulties, which they gradually will resolve and fulfill their obligations.<\/p>\n

ARKA – Does the bank plan consolidation of its portfolio by acquisition the assets of other financial institutions?<\/strong><\/p>\n

Astrid Clifford – <\/strong>We always keep our finger on the pulse, and if there is a profitable offer, we are ready to accept it.\u00a0For example, in September last year the bank bought a $1 million loan package from The First Mortgage Company.\u00a0In the future we will consider such proposals, if they are attractive from a financial point of view and are consistent with our strategy.<\/p>\n

ARKA \u2013 Are you considering the opportunity to participate in a syndicated lending to a major project in Armenia?<\/strong><\/p>\n

Astrid Clifford –<\/strong> In principle, we are open to it.\u00a0We have already a contract with a financial organization for a syndicated lending, but we did not issue such a loan due to lack of demand.\u00a0The fact is that Armenian companies do not have to attract very large sums of money, and banks prefer to lend from their own resources.\u00a0Besides, HSBC Armenia, like other banks with institutional shareholders, can provide syndications through their head offices.<\/p>\n

ARKA – How would you assess the increasing interest in the Armenian banks by the World Bank, EBRD, the EDB, and the ADB?<\/strong><\/p>\n

Astrid Clifford \u2013 <\/strong>We think that the growing partnership of Armenian banks and international institutions is very important.\u00a0Moreover, some banks have a long and successful record of cooperation with these institutions.\u00a0We also have this experience.\u00a0Last year we signed a $12 million loan agreement with EBRD for boosting small and medium businesses, developed also a program of syndicated co-financing.\u00a0In 2012 the cooperation in one or both directions will continue, probably, it will be about the same amount.\u00a0But for now I will refrain from further details.<\/p>\n

ARKA \u2013 To what extent is the Armenian banking sector ready to withstand a possible second wave of financial crisis?\u00a0What are the main risks that the banks may face in 2012 and what precautionary measures should be taken to counter these threats?<\/strong><\/p>\n

Astrid Clifford – <\/strong>The main risks are coming from Europe, plagued with huge external debt and euro\u2019s exchange rate fluctuations.\u00a0But we do not see very serious direct risks to Armenia, as Armenian banks did not acquire Eurobonds, and, in general, the country is not so much integrated into the European economy.<\/p>\n

The forecast 2-3% economic growth for this year, stability or a slight decline in oil prices, which is important in the context of Russia and the volume of transfers, as well as stability in base metal prices at world markets (which is the principal article of Armenian exports), allow us to think that Armenian economy and banks will not face serious threats this year. However, we can not exclude the shock situations, for example, connected with the possible collapse of the euro or escalation of the situation around Iran, which could lead to negative consequences for the global economy, and for the Armenian economy and its banking sector.<\/p>\n

ARKA \u2013 Are you planning a revision in your strategy in anticipation of a possible second wave of crisis?<\/strong><\/p>\n

Astrid Clifford \u2013 <\/strong>We do not plan any specific changes.\u00a0We have always been a conservative bank, very selective in lending and customer choosing.<\/p>\n

ARKA – What new services will the bank offer this year?<\/strong><\/p>\n

Astrid Clifford – <\/strong>This year we plan to open two new branches in Yerevan, bringing the total to ten. Also currently we are working to introduce insurance services for our clients against all sorts of scams and frauds with credit cards.\u00a0In all likelihood we will introduce this service later in February.\u00a0We will insure cardholders against forgery, theft or loss of credit card, transaction with forged documents, amount abduction when using an ATM, emergence of commitments and overdraft.\u00a0Insurance against card fraud is provided for international bank cards and MasterCard from 500 thousand to 1.2 million drams.<\/p>\n

ARKA \u2013 What would you say about rumors that an Armenian bank is going to acquire the assets of HSBC Bank Georgia?<\/strong><\/p>\n

Astrid Clifford – <\/strong>This information does not correspond to reality.\u00a0It was said that HSBC Bank Georgia will cease operations by March 2012.\u00a0As for its customers, corporate customers will be refinanced individually by other banks and obligations to individuals will be acquired by a Georgian Bank.<\/p>\n

ARKA \u2013 We would like to know also about your strategy to work with clients and to what extent their interests are taken into account?<\/strong><\/p>\n

Astrid Clifford <\/strong>– Our goal is to become a real partner for all our customers and provide them with a complete package of banking services that could satisfy them fully.\u00a0This is why we attach such significance to our services, which is why the bank operates a feedback, and this is why we always keep our finger on the pulse and know what our customers think so that quickly resolve their problems.\u00a0Currently the bank has 36,000 individual and 4000 corporate clients.\u00a0In 2011 we attracted about 12,000 new customers.\u00a0 -0\u2013<\/p>\n","protected":false},"excerpt":{"rendered":"

Exclusive interview with Astrid Clifford, Chief Executive Officer of HSBC Bank Armenia.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","tstyn_error":""},"categories":[9214,12168,9216],"tags":[12446,15480,12299],"class_list":{"0":"post-32972","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-banks-en-en","7":"category-interviews","8":"category-news","9":"tag-clifford","10":"tag-hsbc-bank-armenia-2","11":"tag-profit"},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/32972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/comments?post=32972"}],"version-history":[{"count":0,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/posts\/32972\/revisions"}],"wp:attachment":[{"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/media?parent=32972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/categories?post=32972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/armbanks.am\/en\/wp-json\/wp\/v2\/tags?post=32972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}