2024-06-04 14:04:30
Ameriabank’s monetary director Hovhannes Toroyan gave an interview to World Markets journal, presenting the Financial institution’s technique and the primary elements that ensured Ameriabank’s success within the banking system of Armenia.
The total interview is out there under.
– What had been the primary strategic instructions of your financial institution over the past 12 months?
– Ameriabank has been a number one monetary establishment in Armenia for nearly a decade. Though one other section of uncertainty for the worldwide financial system started in 2022, we had been in a position to preserve and additional strengthen our place, reaffirming the status of a steady, trendy, aggressive monetary establishment with vital development potential.
Over the previous six months, the main focus has been on digital transformation, making certain the compliance perform and threat administration, which we see as key drivers of our future development.
–Wanting again at your financial institution’s monetary efficiency final 12 months, are you able to spotlight a few of the highlights?
– Ameriabank has made notable achievements by way of monetary indicators, in addition to improvement of recent providers and applied sciences. Over the previous 12 months, we have now constantly invested in digitization, improved our buyer satisfaction metrics, inner effectivity, modernized our providers and streamlined our processes. We had been in a position to preserve the Financial institution’s cost-to-income ratio under 40%. The financial institution recorded spectacular profitability figures with sturdy capital and liquidity positions.
Annual return on capital was 28%, web curiosity margin was 5.4%. As well as, the Financial institution recorded spectacular development in non-interest earnings. Consistent with our technique, retail and SME loans accounted for greater than 60% of whole loans. The compound common annual development price of the retail portfolio was 30% on a three-year foundation, and that of SME loans was 17.2%. The Financial institution maintained and continued its sound coverage within the area of threat administration. The NPL ratio continued to enhance throughout the board, reaching 2.9% in 2022. Over the previous two years, as a result of correct provisioning, the price of credit score threat was round 0%. On the identical time, Ameriabank supplied wonderful service high quality. That is evidenced by the client loyalty index (NPS), which was greater than 75%, and the client satisfaction index – 9.5 factors out of 10 factors.
– Through which growing areas of your organization have you ever invested and do you intend to proceed investing?
– As a financial institution that stood originally of the institution and transformation of the Armenian banking sector, Ameriabank continues to put money into the sector of knowledge expertise (IT) and digitization, adhering to its strategic priorities. Given the client development figures, we plan to focus our efforts on cross-selling providers and choices, in addition to providing extra progressive providers to prospects. On the identical time, quite a few actions are being developed, aimed toward figuring out new alternatives in sure sectors of the financial system, particularly alternatives that can even contribute to the expansion of banking transactions and non-interest earnings. It is very important word that greater than 90% of all transactions of the Financial institution are carried out outdoors the Financial institution’s branches.
And at last, we’ll proceed to develop and develop human capital, in addition to enhance work effectivity and worker motivation by lively programs and coaching.
– Environmental, social and company administration features and sustainability are among the many most vital strategic instructions of the banking sector. What vital initiatives has your financial institution taken through the previous 12 months that present how vital the talked about features and sustainability are to your establishment?r:
– Because the chief of Armenia’s monetary system, Ameriabank realizes its duty to play a key function in constructing a steady future for the nation. We acknowledge that local weather change and comparable environmental dangers are among the many main challenges going through society at the moment. They create vital environmental, financial and social dangers that hinder long-term development and improvement.
We help the implementation of the United Nations Sustainable Growth Objectives (SDGs) and finance investments in renewable power, power effectivity, entry to wash electrical energy, inexperienced transportation and expertise improvement, thus supporting communities with low ranges of improvement by numerous tasks. Since 2009, Ameriabank, with the help of varied worldwide monetary establishments, has allotted greater than 250 million US {dollars} to finance such tasks.
Ameriabank is the primary financial institution to concern inexperienced bonds in Armenia and the chief on this area. Since 2020, we have now issued greater than USD 60 million in inexperienced bonds.
– There’s a fierce competitors amongst banks to develop and implement progressive digital banking providers. What new and vital funding did your financial institution make within the space of digital banking final 12 months and what success did it have?
– In opposition to the background of the speedy transformation of shopper conduct within the digital sphere, we have now been in a position to present promising ends in the path of diversification and digitization of our providers. Accountability, flexibility, progressive pondering and a tradition based mostly on the need to fulfill the wants of shoppers. all of those make up the system for digital transformation success.
On this context, the previous two years have been outstanding by way of growing and launching a complete digital ecosystem. The primary-of-its-kind instrument out there is a one-stop-shop for banking and non-banking providers, masking the auto market, mortgage market, e-commerce, in addition to a singular ecosystem for SMEs for on-line mortgage functions and machine learning-based credit score scoring. with superior options.
– The outlook for the worldwide financial system presents many challenges. What are the primary dangers and financial challenges your financial institution might face within the subsequent 12 months?
– Armenia has registered vital financial development this 12 months, however there are nonetheless many uncertainties, modifications are happening, sure branches of the financial system are being reworked, shifts are happening in world provide chains, which have but to have their affect on the nation’s financial system.
Whereas the aforementioned uncertainties make it tough to handle the nation’s main monetary establishment, the listed challenges additionally create many alternatives. With the anticipated rise in rates of interest, the deterioration of sure threat parameters, the rising want for motion on local weather change, and the rising dependence on digital devices amongst our prospects, Ameriabank will proceed to deal with data-driven digital transformation, correct threat administration, and the growth of environmental, social and company governance instructions to realize our mission. , that’s, to enhance individuals’s high quality of life.