Artak Hanesyan, Ameriabank. one of the reasons I would like to mention is the economic growth of Armenia in the last two years. After the Velvet Revolution, political and economic reforms are being implemented in Armenia. A large-scale fight against corruption has begun. All this contributed to the increase of Armenia's ranking in the international market, as well as the increase of confidence in our country, the Armenian economy and the real estate market. Banks financing the private sector have played a significant role in terms of economic growth. The ratio of Armenia's assets to GDP was 83%. This indicator is close to the indicator of Eastern European countries. It shows the increasingly important role banks are playing in ensuring Armenia's economic growth.
The banking sector has seen impressive growth. Only credit investments increased by 16% in 2018. It is noteworthy that growth was recorded in both retail and business lending sectors. The mortgage lending sector has also become significantly more active, where supply currently exceeds demand.
During this year, the growth of RA bank deposits was 12.7%. The activity of the market is increasing day by day, and even during the summer holidays, the number of transactions was not inferior to the most active periods of the previous year.
What we are seeing now is the result of the banking sector and the economy working together: the increase in credit contributes to the growth of the economy, which in turn stimulates the increase in demand for loans and other banking products.
In the last 10 years, Armenia's economy has withstood two global financial crises and the Velvet Revolution without serious consequences and problems (bankruptcy, etc.). This testifies to the stability, transparency and trust of our financial system and banks.
"We have always built our strategy on the basis of long-term perspectives, we have strived for it
following global trends, even when the domestic market was within the traditional model.
Our proposals have always stood out for their innovation," Ameriabank General Director Artak Hanesyan
What helps Ameriabank to maintain the leading position of the RA banking system every year in the face of fierce competition?
We have always built our strategy on the basis of long-term prospects, tried to follow global trends, even when the domestic market was within the traditional model. Our offerings have always stood out for innovation.
Moreover, all Ameriabank products are developed after a careful study of customer needs, so they best meet customer requirements. We offer a wide range of remote banking services, develop online lending, do everything to ensure high-quality service, security of transactions, save time and resources of our clients. Quality service, modern methods, professional staff - this is our guarantee of leadership.
Recently, the international rating agency Moody's upgraded Ameriabank's rating to Ba3. What does this mean for the bank?
The rating review is due to the increase of the sovereign rating of the Republic of Armenia from B1 (with a "positive" outlook) to Ba3 with a "stable" outlook, as the organization's rating cannot be higher than the country's sovereign rating. Thus, Ameriabank has the highest possible rating for an Armenian company, which is equal to the sovereign rating of Armenia.
The rating of long-term deposits in national currency was raised from B1 to Ba3 due to the increase in Ameriabank's Baseline Credit Assessments, which in turn is due to the improvement of the macro indicators of the Armenian banking sector and Ameriabank's consistently high and stable financial indicators, in particular, the high quality of assets. , with a strong position in terms of capital, high profitability, sufficient level of liquidity and diversified sources of attracting funds. Moody's also raised a number of other ratings of Ameriabank, in particular, the rating of long-term deposits in foreign currency was raised from B2 to B1, the long-term counterparty risk rating from Ba3 to Ba2. These ratings are very important for attracting investment from capital markets and international funds.
The market is constantly changing, with changes happening in all areas, from technology to customer mindsets. And what changes have taken place in Ameriabank? What is the next step?
Ten years ago, no one could have imagined what path Ameriabank would take. The bank with assets of only 45 million USD and capital of 9 million USD became the leader of the banking system of Armenia. In those 10 years, the bank's assets increased 36 times, the loan portfolio - 130 times. By the way, according to these two indicators, Ameriabank has been the market leader for a long time. We are the 11th largest taxpayer in the list and are significantly ahead of all other banks. Since 2008, Ameriabank has attracted more than 1 billion US dollars from international financial institutions, which is the best proof of the trust of our partners. We are also a leader in investment banking with a 30% share of corporate bond issuance. From a small, inconspicuous bank, we have become the leading financial institution in Armenia both in terms of financial indicators, quality of services, and innovations. We weren't growing in line with the market, we were growing faster than the market.
A major change in the past 10 years has been technological advancement. Instead of continuing our activities as a purely financial company, we decided to act as a technology company as well, actively investing in digital solutions and developing remote banking services. Our corporate management system meets the best international standards, and it is this and a properly developed personnel policy, thanks to which we have been able to create a strong team of professionals and like-minded people. The key to the success of our business is human capital and new technologies.
As for further changes, I am sure that modern technologies have been and will be the basis of success in the banking sector. For Armenia, with its small domestic market, technological progress and the transition of banks to the digital domain will be of particular importance. they will be the basis of the development of the banking system in the coming years.
Source: GlobalMarkets