Ameriabank: At the Vanguard of Armenia's Banking Sector

01/11/2022 15:09

Ameriabank: At the Vanguard of Armenia's Banking Sector


In an interview with Global Markets Magazine, Hovhannes Toroyan, Chief Financial Officer at Ameriabank CJSC, explains the Bank’s strategy and highlights some of the reasons for its success in the Armenia market.

The full interview can be found below:  

- What have been some of the key strategic focus areas for your bank over the past year?

 -Ameriabank has been the leading financial institution in Armenia for almost a decade. Even though the year 2022 started with another wave of uncertainty for the global economy, we were able to maintain and strengthen our positions further, reaffirming the reputation of a stable, modern, and competitive financial institution with significant growth potential.

Over the last six months, the major focus was given to digital transformation, compliance and risk management which we see as key drivers for future growth.

- Reflecting on your bank’s financial performance over the past year, what have been some of the key highlights?

- It is remarkable how much Ameriabank has accomplished in terms of financial performance and development of new products services and technology. In the past year we continuously invested in digitalization, improved our customer experience, internal efficiency, upgraded the services and streamlined our operations. The Bank’s cost to income ratio was maintained below 40%. We registered impressive profitability with strong capital and liquidity positions. Our annualized ROE comprised 28%, with net interest margin of 5.4% and solid non-interest income. In line with our strategy Retail and SME loans comprised more than 60% of total loans. Three year CAGR of retail portfolio was 30% and SMEs registered 17.2%. As always, the Bank applies robust risk management practice. NPL ratio continuously improved across all segments in 2022 standing at 2.9%. Cost of credit risk was around 0%, a consequence of conservative provisioning during the previous two years. At the same time, Ameriabank provided exceptional service quality with net promoter score over 75% and customer experience index at 9.5 (out of 10).

  - What are some of the growth areas in your banking business where you have been focusing, and will continue to focus, investment?

- Staying at the vanguard of the Armenian banking industry and its transformation, Ameriabank continues investments in IT technology and digitalization in line with its strategic priorities. A big focus will be also given to cross selling and up selling of services and propositions to growing number of our customers. At the same time a series of actions are designed for exploring new opportunities in certain sectors of economy, especially those that will also boost transactional banking and non-interest income. It is important to note that more than 90% of all transactions of the Bank are performed outside the Bank’s branches. 

 Finally, we will continue investments in human capital and increase productivity and motivation through intensive trainings.

- ESG and sustainability is one of the most important strategic topics for the banking industry. What significant developments or initiatives has your bank led in the past year that demonstrate how important ESG and sustainability are to your institution?

- As the leading financial institution in Armenia, Ameriabank acknowledges its responsibility to play a key role in advancing Armenia’s transition towards sustainable future. We recognize that climate change and similar environmental risks are immense challenge posing substantial environmental, economic and social risks to long-term growth and prosperity. We also support the achievement of UN Sustainable Development Goals (SDG) and as part of this alignment contribute to financing renewable energy systems, energy efficiency, access to clean electricity, investment in clean transportation, technology development, and ultimately support to underdeveloped communities through various projects. Since 2010, Ameriabank has financed more than USD 250 million worth similar projects with the support of various international financial institutions.

Ameriabank is the first and leading Green bond issuer in Armenia. Since 2020, we have issued over

USD 60 million equivalent of green bonds.

- Banks are in fierce competition with one another to develop and launch innovative digital banking products and services. What are some of the new and significant digital banking products and services that your bank has launched in the past year, and what success have they achieved?

Within the fast-paced transformation of the consumer behaviour in the digital realm, we achieved promising results towards diversification and digitalization of our services. Commitment, agility, innovative mind-set and culture of shared success, driven by the desire to satisfy customers’ needs is the formula to success in digital transformation.

In this context, the past two years were remarkable in terms of developing and launching a comprehensive digital ecosystem - first in its kind in the market – that is a one-stop shop for banking and non-banking services, covering the car market, housing market, e-commerce as well as unique ecosystem for SMEs with options of online onboarding, machine learning based loan underwriting.

- The global economic outlook is challenging. What are some of the main risks and economic challenges you see for your bank over the next 12 months?

While Armenia is having a very solid year in terms of economic growth, there are still a lot of uncertainties and structural changes, including transformation of certain industries and shifts in global supply chains that should yet have their reflection on the country’s economy. While it is more challenging to manage the leading financial institution of the country under all those uncertainties, those challenges also offer a plenty of opportunities within themselves. Under the expected increasing pattern of interest rates, deterioration of certain risk parameters, increasing need for climate action and growing dependence on digital gadgets of our customer base, Ameriabank will continue its focus on data driven digital transformation, proper risk management and further enhancement of ESG practice to achieve our mission of “improving the quality of life” of our stakeholders.

 

 


In case you have found a mistake in the text, please send a message to the editor by selecting the mistake and pressing Ctrl-Enter.

Newsfeed

06/06/2023 12:33 Viva-MTS expands and strengthens the entire mobile infrastructure along with the development of the 5G network 05/06/2023 11:31 Partnership for Environmental Protection and Community Development 03/06/2023 11:56 15 schoolchildren face Gabriel Sargissian in open-air simultaneous display (Video) 02/06/2023 15:53 Team Telecom Armenia is undertaking its initial public offering (IPO) 01/06/2023 10:43 We hope that some of these Armenian children will become professional football players. Claudio Zola 01/06/2023 10:18 On the occasion of June 1st Karen Vardanyan provided 115 million drams to the parentless children of Yerevan 31/05/2023 19:15 Team Group of Companies has acquired 30% of Georgian SkyTel 29/05/2023 13:34 Fly Arna launches new direct flights connecting Yerevan to Kuwait 25/05/2023 14:33 Regional Call Center of Viva-MTS opens in Vanadzor 23/05/2023 17:48 15 YSU students will receive Byblos Bank Armenia scholarships and tuition reimbursement 23/05/2023 11:49 “Unlim”: New prepaid tariff plan by Viva-MTS 17/05/2023 15:37 “The path to creating this brandy was an endless aspiration to excellence for us, and I feel that we succeeded” - Olivier Chapt 17/05/2023 14:17 Border village Berdavan is almost completely illuminated 03/05/2023 14:02 The second batch of electric fences has been introduced in Vayots Dzor 28/04/2023 13:28 Poqr Vedi will save around 1 million AMD a year 27/04/2023 16:46 President Harutyunyan received Colonel-General Alexander Lentsov, the newly appointed commander of the Russian peacekeeping troops 27/04/2023 15:57 Milan Academy Junior Camp to take place in Armenia with leading companies coming together to support young people from regions 25/04/2023 15:41 The introduction of electric fences program was implemented in region of Ararat 18/04/2023 15:43 Production of natural vegetable oils was established in Spitak 17/04/2023 13:32 "The Woman...": Viva-MTS project dedicated to women's month 10/04/2023 15:37 Another modern infrastructure system has been installed in a rural region of Armenia 07/04/2023 10:03 107 million drams from Mikayel Vardanyan to the mothers of children with disabilities in Gegharkunik 14/03/2023 15:18 The Team Group of Companies has acquired the “Grand Hotel Yerevan” 13/03/2023 18:11 The first “Doing Digital” Forum will be held in Yerevan 07/03/2023 10:28 On the occasion of March 8 Karen Vardanyan donated 113 million drams to 562 beneficiary families with 4 and more children under 18 in Lori region 02/03/2023 18:03 Information on Viva-MTS coverage map and technologies made publicly available 27/02/2023 16:14 Orthoses: getting wounded soldiers back to normal life Yet another success by Viva-MTS and the “Soldier's home”: the story of 22-year-old Hayk 22/02/2023 15:46 Viva-MTS: side by side with the families getting personal assistant support 21/02/2023 16:27 Ambassador Kvien presents her credentials 21/02/2023 11:22 EWC Armenia 2022’s National Winner HOPSHOP Advances to Entrepreneurship World Cup Global Finals 15/02/2023 18:55 A New Branch of Ameriabank has Opened its Doors in Yerevan, with Special Offers for Clients 15/02/2023 14:28 On February 18 and 19, the Career Weekend will be held in Yerevan 15/02/2023 12:31 Viva-MTS: “+100 minutes” and “+300 minutes” services are already available for Postpaid “X” and “Y” tariff plans subscribers 15/02/2023 11:17 Byblos Bank Armenia celebrates 15th anniversary (Video) 13/02/2023 17:39 Viva-MTS: Orthotics - after the wounding․ Preventing post-injury complications is a goal for partner organizations 09/02/2023 10:35 Armenia in the global financial and economic map, where to start? 08/02/2023 16:33 “I considered myself successful, when I came back to my village and established the first business”, Chef Yura Sargsyan 06/02/2023 18:09 Targeted support is in the spotlight of Viva-MTS 30/01/2023 17:01 The European Union and Viva-MTS join forces with Catalyst Foundation to support Armenian Tech Entrepreneurs 27/01/2023 17:00 Ameriabank Leading the Mortgage Market Five Years in a Row 27/01/2023 10:28 On the occasion of the Army Day Mikayel and Karen Vardanyans donated 330 million drams to 1098 families of the killed in the 44-day war, having minor children 26/01/2023 11:46 Long-term impact program using new technologies: An energy-saving lighting system has been lunched in the border village of Vanevan 23/01/2023 13:03 ANIF’s CEO David Papazian Speaks at Abu Dhabi Sustainability Week 20/01/2023 12:06 "Eco-activists" could not reach the Lachin Corridor without the the Azerbaijani authorities’s special permission: the Foundation has analyzed new facts 18/01/2023 17:31 An energy-efficient lighting system has been launched in the border village of Tigranashen 16/01/2023 15:40 Fly Arna launches new flights to Novosibirsk 13/01/2023 18:19 Derjava Group of Companies wins Quality Mark 2022 award 12/01/2023 11:09 Fly Arna launches new flights to Saint Petersburg 11/01/2023 11:25 Hexact closes the business year with 2X revenue 03/01/2023 15:50 “+Premium” service: get additional 30 GB and “Yandex Plus” subscription within your “X”, “Y”, “Z”, “Viva” or “START” tariff plan 30/12/2022 17:44 Those blocking Lachin corridor are Azerbaijani agents, Ruben Vardanyan tells France 24 29/12/2022 10:29 Viva-MTS. modern technologies lead to efficient solutions 28/12/2022 18:07 Ameriabank named Best Foreign Exchange Bank in Armenia by Global Finance 28/12/2022 12:16 AmpiChap elevates the legal field to meet the demands of a modern society 22/12/2022 17:03 New tariff plan “START”: unlimited “TikTok”, “Instagram” and other top apps, 5GB of Internet, 300 minutes airtime 21/12/2022 18:46 IFC, Amundi-Acba Launch Partnership to Increase Investment in Armenia’s Infrastructure 20/12/2022 15:52 Important healthcare issues have been resolved in borderline Chinari Viva-MTS and "Athena" charitable foundation summarized the results of the project 15/12/2022 10:34 Mikael Vardanyan provided 111 million drams to all the underage disabled children from beneficiary families of Tavush 14/12/2022 18:29 Use of Smart Solutions at Financial Companies: Ameriabank Partners Silicon Mountains 2022 12/12/2022 19:17 “Smart Infrastructures” panel discussion in participation of the ICT companies and Public Services Regulatory Commission 02/12/2022 16:29 “+300 minutes” – talk even more 02/12/2022 16:04 Ameriabank named the Bank of the Year 2022 in Armenia by The Banker Magazine 01/12/2022 18:27 Favorite Armenian stickers in Viber are now animated 28/11/2022 15:15 Viva-MTS: applying solar energy in telecom infrastructures 23/11/2022 18:01 A therapeutic lab, two gyms and a cafeteria: Viva-MTS supports the Homeland Defender’s Rehabilitation Center to expand delivered services 23/11/2022 12:51 President Arayik Harutyunyan appealed to the National Assembly Chairman to return the draft amendment to the Constitution of the Artsakh Republic 22/11/2022 17:52 Viva-MTS offers the best price: 7 Դ/MB based on used MBs when roaming in Georgia, Egypt, UAE and in 50 more countries 19/11/2022 19:52 Success of the family business based in Tavush: from a home to a guest house and a small winery 17/11/2022 17:30 A new water-collector operated in Gnishik 16/11/2022 13:45 Analysis of EU Taxonomy criteria for nuclear energy 15/11/2022 11:20 Ameriabank Launches Google Pay and Google Wallet Support for Card Users in Armenia 15/11/2022 10:28 Google Pay™ is available for Acba bank customers 15/11/2022 10:24 Karen Vardanyan donated life-saving modern equipment of 112 million drams to the National Center for Infectious Diseases 11/11/2022 15:04 You’ve never had this before: join “Y” and pay AMD 1800 for the first 30 days 10/11/2022 17:29 5 books per month from “Zangak” bookstores with a 15% discount 10/11/2022 09:41 The 11Th SunChild IEF Closing & Award Ceremony Took Place 08/11/2022 18:09 Ongoing partnership – justified results 04/11/2022 17:03 Viva-MTS: the program to grow forest on the bald mountain kicks off 02/11/2022 09:28 Viva-MTS: the 3-month long orthoses program yields results 01/11/2022 15:09 Ameriabank: At the Vanguard of Armenia's Banking Sector 28/10/2022 12:40 Partnership to increase forest cover in Armenia and fight against desertification 26/10/2022 14:33 YSU biologists have obtained organic fertilizer from coffee waste 20/10/2022 15:39 “+Social”: now for AMD 400 instead of AMD 800 before 19/10/2022 12:18 New technologies in borderland Koti: solar plant for drinking water pump station and LED system installed 13/10/2022 18:05 Global Finance Names Ameriabank the Safest Bank in Armenia 13/10/2022 11:22 With Viva-MTS support, the charity foundation “Athenas” will provide free dental services 13/10/2022 10:00 Mikayel and Karen Vardanyans provided 136 million AMD support for the overhaul of the Myasnikyan statue, which was in unsafe state of disrepair 12/10/2022 18:14 Acba Bank in Partnership with Visa launches first Tap to Phone innovative technology to Expand Digital Payments in Armenia 11/10/2022 14:30 The Final Stage of the 17th Annual International Microelectronics Olympiad successfully held in Armenia 10/10/2022 13:24 ANIF's "Entrepreneur+state" Investment Fund’s new investment in the field of agriculture 10/10/2022 11:26 The technology created by Armenian Revalcon is attracting markets abroad 07/10/2022 12:43 Viva-MTS: Long-term impact program using new technologies 05/10/2022 16:44 Largest Corporate Bond Program at the Securities Market of Armenia Completed Successfully 28/09/2022 17:34 The first snail breeding farm was established in Armenia 26/09/2022 17:10 A willpower to live the life re-found. Viva-MTS: the 3-month orthosis program underway 26/09/2022 16:17 USD 25 million to support the private sector 20/09/2022 19:23 “Virtual PBX”: new service within Viva-MTS business package 19/09/2022 16:02 Pashinyan ordered to punish the law enforcement officers who have failed the search warrant of Minasyan 16/09/2022 10:39 With 120 million drams donated by Mikael Vardanyan, the defenders of the homeland will be treated in a new building 07/09/2022 19:02 Vice President of IBM's Electronic Design Automation group, visited Viva-MTS