Latvia MFA welcomes EU visa liberalization dialogue with, European Peace Facility support to Armenia Luis Moreno Ocampo: Armenians! Lead the world to a truly peaceful COP29! Ararat Mirzoyan congratulates Estonian colleague on re-election as Foreign Minister Armenia and Azerbaijan continue to make progress toward a peace agreement - Miller EBRD and Ameriabank to support Armenian businesses through stable trade finance funding Macron on military cooperation with Armenia: Baku armed itself much better than Yerevan Ambassador: Next Meeting of Foreign Ministers in “3+3” format will be held in Turkey in near future A global internet outage is affecting airlines, banks, media worldwide Armenian Ambassador to Greece meets with Secretary General of Black Sea Trade and Development Bank New Armenian Consulate opens in Bari, Italy 

How Ameriabank continued to deliver success amid the volatility of the global markets

Armenia

Ameriabank CEO Artak Hanesyan’s interview with Global Finance magazine

Q: 1. Given the volatility that has characterised markets over the past few years, how has the bank worked to mitigate the risks and continue to thrive?   

A: Ameriabank has enjoyed a steadily successful trajectory over the past few years.  In a challenging environment marked by geopolitical tension and market volatility, the Bank has demonstrated resilience and outperformed the market benchmarks across several key financial indicators. This is founded on strong fundamentals with an effectively diversified balance sheet, a sound corporate governance and a clear vision for the future.

We have been able to apply a balanced risk management mechanism and an enhanced liquidity management framework to improve financial efficiency and deliver solid risk-adjusted profitability. Total assets reached AMD 1.33 trillion as of September 2023 with 12% compound annual growth rate since 2019. Ameriabank is the largest lender in the market with AMD 902 bn  loan portfolio and 19.1% market share as of 3Q 2023. In line with our universal banking model we continued to diversify our loan book further, with strong double digit growth of Retail and SME loans portfolio over the recent years, contributing to a loan distribution where Retail and SME loans comprise 61.2% of the total loan book.

The quality of the Bank’s loan portfolio has also continuously improved starting from 2020. Non-performing loans stood at 2.16% (vs 2․97% Market) as of September 2023, continuing a downward trend, while maintaining a level below the long-term average and pre-pandemic level (2.87%). Total deposits and bonds, have registered a 14.2% growth year-to-date and a 27% year over year surge, primarily driven by time deposits. Both the Corporate and Retail segments expanded their account holder base and effectively augmented their deposit portfolios, despite the uncertain external environment.

Our total equity increased by 10.1% in the first three quarters of 2023, reaching 190 billion drams, underpinned by a 17% CAGR since 2019 fuelled by robust profit generation. In fact our net profit has been growing in double digits for the recent years due to both net interest and non-interest income, proving the sustainability of the bank’s profit generation. As a result, the profitability indicators are at historically high levels (NIM stood at 6.4%, ROE at 26% and ROA at 3.6%), significantly outperforming the market average as well.

This dynamic performance has driven impressive investor interest and ensures that Ameriabank will continue on its transformational journey. In fact in this respect, the bank’s success reflects the positive macroeconomic environment: Armenia’s economy demonstrated resilience and high growth potential with 12.6% GDP growth in 2022 at the same time managing to maintain the lowest inflation rate and most stable currency in the region.  

Q: 2.    Are there any specific measures or instruments that have been put in place to protect the bank’s fundamentals?

A: Ameriabank has always taken care to see that its corporate governance aligns with the best international financial and institutional practices. This has proven essential to protect the bank’s fundamentals and its credibility. The absolute majority of the Board of Directors, who are responsible for the Bank’s overall management, are independent non-executive directors, with diverse international background and profound experience in the financial world. The Bank has also drawn strength from its diverse and dedicated shareholder base, having also international development finance institutions as shareholders (EBRD & ADB). Ameriabank has made its commitment to the highest ethical standards and rigorous compliance with international requirements the hallmark of its operations.

Financial soundness indicators have remained at a prudent level even during most challenging times and continuously improving profitability metrics demonstrate the bank’s financial health. In particular, the bank was fully comfortable in meeting the increased Basel 3 buffer requirements, having built the necessary cushions in advance. 

Q; 3.    ESG and corporate responsibility have become ever more important in recent years. What measures have you taken to ensure that the organisation meets its responsibilities in these areas? Again, are there specific challenges you have faced and, if so, how have you met them?

A:

We have always been a trend setter in our market in terms of best practice ESG standards implementation. Our commitment to sustainability and to the entire ESG agenda has been one of the cornerstones of our long-term successful growth. The imperative of sustainability, of investing in a future which safeguards our planet and protects future generations, demands that financial institutions play a key role. We at Ameria have been embedding responsible business practices and consistently prioritizing sustainability in investment decisions. Green investing, renewable energy and sustainability considerations offer opportunities as much as challenges, opportunities which Ameria is committed to take full advantage of. We were the first issuer of Green bonds in Armenia back in 2020 and remain focused on expanding our green assets portfolio further.

Given our status as a leading bank in Armenia, we have also shouldered our responsibilities to our own communities and taken care to support those most in need, including those recently displaced. We have made major investments in our communities’ futures. 

Q: 4.    In light of these challenges and given the changing environment in terms of AI, digital currencies and the like, what work have you done to future-proof the institution and continue to deliver for clients?

A: Imagination and creativity at all levels of the Bank have ensured our ability to adapt to changing circumstances.  We have been one of the region’s foremost institutions in promoting digital transformation, achieving a 69% online banking penetration rate and an 84% cash offloading rate, reflecting significant strides in its strategic development.

We see this digital transformation as opening up new horizons beyond banking: we can offer these empowering platforms to a wide range of sectors, markets and potential customers. From healthcare to travel to fintech education, where an integrated application of data and opportunity can open new vistas and clarify options, we are partnering with key players to leverage our technological expertise and take it to market.

About Ameriabank

Ameriabank is a leading financial and technology company in Armenia, a major contributor to the Armenian economy, with assets exceeding AMD 1 trillion. In the course of digital transformation, it has launched a number of innovative solutions and platforms going beyond banking-only needs of its diverse customer base, thus creating a dynamically evolving financial technology space. 

Ameria was the first in Armenia to create ecosystems for both businesses and individuals, which give one-window access to a range of banking and non-banking services, among them - Estate.ameriabank.am, Automarket.ameriabank.am, Business.ameriabank.am

As a truly customer-centric company, Ameria aims to be a trusted and secure financial technology space with seamless solutions to improve the quality of life.

Ameriabank is regulated by the Central Bank of RA.

 

Հետևե՛ք -ին Youtube-ում`
Ameriabank Receives 3 Awards for Excellence by Euromoney: the Best Bank, the Best Digital Bank, and the Best Bank for SMEs in Armenia for 2024Latvia MFA welcomes EU visa liberalization dialogue with, European Peace Facility support to ArmeniaBiden to return to White House Tuesday after being in isolation due to Covid"Past" (Fact in Armenian) Armenians bought real estate in Dubai worth about $60 million in two daysEU ministers to meet in Brussels instead of BudapestHarris secures enough delegates to win nominationLuis Moreno Ocampo: Armenians! Lead the world to a truly peaceful COP29!World's most liveable cities announcedArarat Mirzoyan congratulates Estonian colleague on re-election as Foreign MinisterArmenia and Azerbaijan continue to make progress toward a peace agreement - MillerEBRD and Ameriabank to support Armenian businesses through stable trade finance funding Macron on military cooperation with Armenia: Baku armed itself much better than YerevanGoogle Chrome is the fastest but the most problematic browserMax presents the official teaser trailer for its new series “Dune: Prophecy”Officer and cadet among victims in deadly plane crashAmbassador: Next Meeting of Foreign Ministers in “3+3” format will be held in Turkey in near futureA global internet outage is affecting airlines, banks, media worldwideArmenian Ambassador to Greece meets with Secretary General of Black Sea Trade and Development BankMilitary helicopter crashed in Armenia, both pilots killedNew Armenian Consulate opens in Bari, ItalyParis mayor Hidalgo bathes in the Seine to dispel water quality woesMagdalena Grono to replace Toivo Klaar as EU Special Representative for the South CaucasusRuben Rubinyan receives Ambassador of Iran to ArmeniaMeeting of Ministers of Foreign Affairs of Armenia and LebanonAccess to a number of settlements in Belgorod region to be restrictedEuropean Commission says it cannot strip Hungary of its EU presidencyKim Kardashian talks about how worsening psoriasis affected her preparation for the Met GalaAl Jazeera: Israeli strikes on Gaza Strip kill 48 peoplePrime Minister Pashinyan left for the UK on a working visitOil Prices DownMacron accepts PM Attal's resignationBiden discloses what would make him drop out of 2024 raceProud that EU support is saving lives of people in Azerbaijan: EU ambassador on deminingRussia has no intention to interfere in internal US processes: PeskovPossibility of strengthening domestic relations between Azerbaijan and Israel discussedUnder Secretary of State visited new buildings of Patrol Service and operational managementThe son of India's richest man receives a gold Dartz SUV as a wedding giftMeeting of Foreign Minister of Armenia and Minister of Economy of OmanHalle Berry refuses to participate in the Kim Kardashian seriesSynchron integrates ChatGPT with human brainMEPs call to strip Hungary’s EU voting rights amid Orbán’s ‘peace missions’ - POLITICOArarat Mirzoyan and the Minister of Economy of Oman discussed the possibilities of enhancing cooperation between the two countriesArmenia reaffirms its commitment to the implementation of the 2030 Agenda-Ararat MirzoyanOil Prices DownHostages’ relatives block Tel Aviv highwayTrump appears with bandaged ear at Republican conventionYerevan and Baku need to make 'tough compromises’ to reach a final agreement - Matthew Miller France will continue to adhere to all international obligations: MacronWe hope that permanent peace will be established between Azerbaijan and Armenia soon: ErdoganMy team will fight for creation of a 'strong region': Masud Pezeshkian
Most Popular