HSBC BANK ARMENIA ACHIEVES GOOD RESULTS IN MARKET OF RETAIL CREDITING
Arminfo
2007-02-26 16:09:00
The retail crediting volume of the HSBC Bank Armenia, one of the
leaders in the country’s banking system, steadily approaches the volume
of crediting corporate borrowers. Tony Turner, Chief Executive Director
of the bank, told an ArmInfo correspondent that $39 mln out of the $98
mln of total volume of credits are retail credits. The high rate of
retail growth doesn’t mean that the bank pays less attention to the
commercial crediting. The bank has entered the banking retail market
in a well-prepared state and achieved good results, he noted. In its
turn, the development of banking retail contributed to the growth of
credit portfolio balance, as only the work with heavy borrowers make
the portfolio vulnerable.
Speaking of the interest policy, Tony Turner disagreed with the opinion
that the bank attracts very cheap resources and advances credits at
high rates.
First and foremost, he looks at the two components of the balance,
assets and obligations taken separately. He said that the bank pays
interest to the clients and promise to return their money. It is not
that the bank is going to compete with those who pay unlikely rates
of interest on deposits. The HSBC holding has never broken its promise
for 160 years, and its clients receive their money completely despite
psychological and other factors. The bank can’t promise and pay at
the interest rates which are unequal to the market, he noted. Yet,
today the bank pays more than ever, he said. The bank doesn’t pay
interest on current accounts, but some depositors receive up to 4%
yearly interest on deposits. These are very large clients, but even
in this case, 4% is a high figure for any market, he considers. Those
who have current accounts in the bank make use of expensive services
free of charge, including cashing, though they don’t receive interest
on arrears, T.Turner emphasized. As regards the assets, he noted that
in this sphere the bank efficiently competes and offers resources at
12% yearly credit rates. There are no such low credit rates in the
market, and he expressed hope that the bank will shortly offer cheaper
resources to its clients, moreover, it intends to start crediting at
floating rates, he stressed.
To note, according to the Ranking of commercial banks of Armenia
prepared by the specialists of the Agency of Rating Marketing
Information (ArmInfo), by Jan 1, 2007, the total capital of the
bank made up $19.8 mln (5th place), assets – $220.6 mln (1st place),
provision of crediting – $85.0 mln (3rd place).
By the natural persons’ deposits, the bank holds the 1st place –
$103.4 mln.