General Director of Ameriabank Artak Hanesyan the interview Global Finance magazine
– Taking into account the instability prevailing in the international markets over the last few years, what measures has the bank taken to reduce risks and ensure continuous growth?
– Ameriabank has been achieving steady success in recent years. In a challenging environment of geopolitical tensions and market volatility, the Bank has demonstrated resilience and outperformed market averages in several key financial metrics.
In order to improve financial efficiency and ensure stable risk-adjusted profitability, we have been able to implement a balanced risk and liquidity management mechanism in 2023. As of September, the bank’s total assets amounted to 1.33 trillion AMD. with an average annual growth rate of 12% since 2023. According to the data of the 3rd quarter, Ameriabank is the largest lender in the market with a loan portfolio of AMD 902 billion and a 19.1% market share. is the efficient distribution of loans. retail and SME loans make up 61.2% of the total loan portfolio.
2020 Since then, the quality of the Bank’s loan portfolio has been continuously improving. 2023 as of September, non-performing loans amounted to 2.16% (compared to 2.97% recorded in the market), maintaining the downward trend and remaining at a level lower than the long-term average and pre-epidemic index (2.87%). Total deposits and bonds grew by 14.2% year-to-date and 27% year-on-year, mainly due to term deposits.Despite uncertain external conditions, both the corporate and retail segments expanded their account holder base and significantly increased their deposit portfolios.
2023 during the first three quarters, our total capital increased by 10.1%, reaching AMD 190 billion, based on the 17% average annual growth rate recorded since 2019. In fact, our net profit has been increasing in recent years is in double digits on account of both net interest and non-interest income, which indicates the ability of the bank to generate stable profits are at the historically highest level (the bank’s net interest margin was 6.4%, return on capital was 26%, and return on assets was 3.6%), significantly exceeding the market average as well.
Such dynamic results have generated great interest among investors and indicate that Ameriabank will continue its transformation path. In fact, the bank’s success in this regard reflects the positive macroeconomic environment; In 2022, Armenia’s economy showed flexibility and high growth potential: ensuring a 12.6% GDP growth while maintaining the lowest inflation rate in the region and the most stable currency.
– Have any special measures or tools been used to protect the bank’s main positions?
– Ameriabank has always ensured that its corporate governance is in line with the best international financial and institutional practices. And this is important from the point of view of strengthening the bank’s main positions and reputation. The absolute majority of the Board of Directors members are independent, non-executive directors with international experience with deep knowledge of the financial sector. The bank’s success is also supported by experienced, knowledgeable shareholders who are loyal to the organization’s values and ideas, including international financial institutions (EBRD and ADB).
Our financial stability indicators have remained at a high level even in the most difficult times, and the continuous improvement of profitability is evidence of the bank’s financial stability.
– Environmental protection, social and corporate responsibility have become even more important in recent years. What measures have you taken to ensure the fulfillment of your responsibilities in these areas? them.
We have always been a trend-setter in the market in implementing best practices in sustainable development and environmental protection, social and corporate responsibility standards.
– Our commitment to sustainable development and the shared ideas of social and corporate responsibility have always been cornerstones of our long-term development. Building an environmentally sustainable planet and investing in a future that protects future generations requires that we at Ameria play a key role practices and consistently prioritize environmentally sustainable development when making investment decisions.Green investments, renewable energy and Environmental protection issues are not only a challenge, but also an opportunity, which Ameria intends to fully use. we acted as the first issuer of green bonds in Armenia and continue to emphasize the further expansion of the bank’s green asset portfolio.
As Armenia’s leading bank, we have taken on the responsibility of supporting our communities by helping those who need our support the most, including our recently displaced compatriots.We have invested heavily in the development of our communities.
– Taking into account the mentioned problems, as well as the changing environment under the influence of artificial intelligence, digital currencies and other similar circumstances, what work have you done to protect the organization from future challenges and also offer high-quality products to customers in the future?
– Our mindset and creative approach at all levels of the bank has ensured the ability to adapt to changing conditions. about
We see digital transformation as an opportunity to open new horizons beyond the borders of the banking sector. We can offer these efficient development platforms to a wide range of industries, markets and potential customers.From healthcare to travel to fintech education, where the comprehensive application of data and capabilities can create new perspectives and options, we collaborate with key players in this direction: to more effectively use and market our technological expertise.