Transcript Union of Banks of Armenia

Armenian Banking Area
Developments and Trends
Yerevan, Republic of Armenia, January 2007
Figures as at 01 January, 2007
Union of Banks of Armenia
General Descriptive Figures
 Total Capital – € 0.251 billion
 Total Assets – € 1.137 billion
 Total loans – € 0.53 billion
 Total Liabilities – € 0.886 billion
 Total Deposits of Physical persons - € 0.302 billion
 Total number of banks – 21
 Number of Branches – 298
 Total staff – 5694
Union of Banks of Armenia
Key Indexes
Total View
Profitability Indexes
 Return on Assets (ROA) – 3.13%
 Return on Equity (ROE) – 14.2%
Capitalization Indexes
 Total Capital/Total Assets – 22.08
 Total Capital/Liabilities – 28.33
Union of Banks of Armenia
8
BTA Investbank
2
1
1
HSBC Bank Armenia
2
Armbusinessbank
3
Prometey Bank
4
Ararat Bank
0
4
ITB
8
Inecobank
Areximbank
Anelik Bank
16
Artsakhbank
16
Converse Bank
Bank
30
ACBA-Credit Agricole
Unibank
Armeconombank
60
ARDSHININVESTBANK
VTB Bank (Armenia)
Number of Branches
120
Banks with Branches
98
90
51
43
27
14
• Average number of branches for one bank – 14
• Number of banks without branches - 5
Union of Banks of Armenia
976 927
900
101
99
88
80
75
72
57
53
49
30
Armbusinessbank
Ararat Bank
BTA Investbank
Prometey Bank
ADB
ArmSwissBank
Cascade Bank
Armimpexbank
Mellat Bank
Areximbank
HSBC Bank Armenia
Converse Bank
Unibank
ACBA-Credit Agricole
Anelik Bank
Armeconombank
0
VTB Bank (Armenia)
300
275 217
185 181
Inecobank
427 422 393
356
600
ITB
622
Artsakhbank
1200
ARDSHININVESTBAN
Number of Employees
Banking Staff Developments
Banking Staff Integrative Indexes
Total number of staff - 5694
Average number of staff for one bank – 271
Average profit on one employee - € 7,851
Average assets on one employee – € 199,684
Administrative expenses share in total expenses – 61%
Union of Banks of Armenia
Banking Area Development Trends
Total Capital
300
250.8
Total Capital (mln Euro)
250
178.1
200
150
97.3
100
63.3
50
0
2003
2004
2005
2006
Union of Banks of Armenia
Banking Area Development Trends
Total Assets
1136.7
1200
Total Assets (mln Euro)
1000
847.4
800
559.6
600
409.9
400
200
0
2003
2004
2005
2006
Union of Banks of Armenia
Banking Area Development Trends
Total Loans
531.7
600
Total Loans (mln Euro)
500
382.5
400
300
225.2
171.03
200
100
0
2003
2004
2005
2006
Union of Banks of Armenia
Banking Area Development Trends
Total Acquired Securities
190.4
200
Total Securities (mln Euro)
180
160
120.9
140
120
100
80
60
57.7
41.4
40
20
0
2003
2004
2005
2006
Union of Banks of Armenia
Banking Area Development Trends
Balance Profit
44.7
45
Balance Profit (mln Euro)
40
35
29.5
30
25
21.3
20
15
10
5
0.8
0
2003
2004
2005
2006
Union of Banks of Armenia
Presentation of Separate Banks
Union of Banks of Armenia
ACBA-Credit Agricole Bank CJSC
ACBA Assets
Total Capital – € 38.2 mln
110.3
Assets – € 110.3 mln
Securities Acquired – € 15.8 mln
Liabilities – € 72.1 mln
Total Deposits of Physical
persons - € 21.3 mln
Branches – 16
Total Assets (mln Euro)
Loans – € 68 mln
120
100
66.6
80
60
36.9
40
25.2
20
0
2003
2004
2005
2006
Employees – 422
Union of Banks of Armenia
Anelik Bank Ltd.
Anelik Bank Assets
Total Capital – € 10.06 mln
Securities Acquired – € 0.7 mln
Liabilities – € 51.8 mln
Total Deposits of Physical
persons - € 14.2 mln
Branches – 8
Total Assets (mln Euro)
Assets – € 61.8 mln
Loans – € 29.9 mln
61.8
70
60
45.2
50
40
30
27
20.7
20
10
0
2003
2004
2005
2006
Employees – 427
Union of Banks of Armenia
Ararat Bank CJSC
Ararat Bank Assets
Total Capital – € 8.01 mln
Assets – € 17.8 mln
Securities Acquired – € 7 mln
Liabilities – € 9.84 mln
Total Deposits of Physical
Total Assets (mln
Euro)
Loans – € 6.1 mln
17.8
20
15
10
8
7.5
5
0
2004
2005
2006
persons - € 0.57 mln
Branches – 3
Employees –88
Union of Banks of Armenia
Ardshininvestbank CJSC
Ardshininvestbank Assets
Total Capital – € 23.18 mln
Securities Acquired – € 30.6 mln
Liabilities – € 121.3 mln
Total Deposits of Physical
persons - € 27.4 mln
Branches – 51
Total Assets (mln Euro)
Assets – € 144.45 mln
Loans – € 65.1 mln
144.45
160
140
120
102.1
100
80
57.9
60
40
30.4
20
0
2003
2004
2005
2006
Employees – 976
Union of Banks of Armenia
Areximbank CJSC
Areximbank Assets
Total Capital – € 6.64 mln
28.5
Securities Acquired – € 0.4 mln
Liabilities – € 21.9 mln
Total Deposits of Physical
persons - € 11.5 mln
Branches – 8
Total Assets (mln Euro)
Loans – € 15.8 mln
26.8
30
Assets – € 28.5 mln
25
20
15
16.3
11.4
10
5
0
2003
2004
2005
2006
Employees – 181
Union of Banks of Armenia
Armbusinessbank CJSC
Armbusinessbank Assets
Total Capital – € 5.7 mln
34.7
Assets – € 34.7 mln
Securities Acquired – € 6.5 mln
Liabilities – € 29 mln
Total Deposits of Physical
persons - € 5.4 mln
Total Assets (mln Euro)
Loans – € 12.4 mln
35
30
25
17.8
20
15
12.9
14.3
10
5
0
2003
2004
2005
2006
Branches – 1
Employees – 99
Union of Banks of Armenia
Armeconombank OJSC
Armeconombank Assets
Assets – € 91.8 mln
Loans – € 42.6 mln
Securities Acquired – € 15.9 mln
Liabilities – € 77.4 mln
Total Deposits of Physical
persons - € 22.3 mln
Total Assets (mln Euro)
Total Capital – € 14.37 mln
91.8
100
80
65.3
60
41.6
40
26.9
20
0
2003
2004
2005
2006
Branches – 43
Employees – 622
Union of Banks of Armenia
Armenian Development Bank OJSC
ADB Assets
Total Capital – € 7.9 mln
Loans – € 9.2 mln
Securities Acquired – € 4.2 mln
Liabilities – € 11.4 mln
Total Deposits of Physical
persons - € 5.3 mln
20
Total Assets (mln Euro)
Assets – € 19.3 mln
19.3
16
16.7
15.5
15
10
5
0
2003
2004
2005
2006
Branches – 0
Employees – 72
Union of Banks of Armenia
Armimpexbank CJSC
Armimpexbank Assets
Total Capital – € 7.08 mln
Assets – € 23.6 mln
Securities Acquired – € 10.4 mln
Liabilities – € 16.5 mln
Total Deposits of Physical
persons - € 1.5 mln
25
Total Assets (mln Euro)
Loans – € 7.2 mln
23.2
19.5
23.6
19.7
20
15
10
5
0
2003
2004
2005
2006
Branches – 0
Employees – 49
Union of Banks of Armenia
ArmSwissBank CJSC
ArmSiwissBank Assets
Total Capital – € 6.4 mln
Assets – € 20.4 mln
Securities Acquired – € 4.3 mln
Liabilities – € 14 mln
Total Deposits of Physical
Total Assets (mln
Euro)
Loans – € 5.2 mln
25
20.4
20
15
11.3
10
5
0
2005
2006
persons - € 2.6 mln
Branches – 0
Employees – 57
Union of Banks of Armenia
Artsakhbank CJSC
Artsakhbank Assets
Total Capital – € 8.28 mln
Loans – € 27.7 mln
Securities Acquired – € 8 mln
Liabilities – € 39.5 mln
Total Deposits of Physical
persons - € 5.5 mln
50
Total Assets (mln Euro)
Assets – € 47.8 mln
47.8
46
36.8
40
30
18.6
20
10
0
2003
2004
2005
2006
Branches – 14
Employees – 275
Union of Banks of Armenia
BTA Investbank CJSC
BTA Investbank Assets
Total Capital – € 6.8 mln
19.99
Assets – € 19.99 mln
Securities Acquired – € 1.7 mln
Liabilities – € 13.2 mln
Total Deposits of Physical
persons - € 0.6 mln
Branches – 2
Total Assets (mln Euro)
Loans – € 12.6 mln
20
15
10
10
5
2
0
2004
2005
2006
Employees – 80
Union of Banks of Armenia
Cascade Bank CJSC
Cascade Bank Assets
Total Capital – € 9.77 mln
Assets – € 18.4 mln
Securities Acquired – € 5.9 mln
Liabilities – € 8.6 mln
Total Deposits of Physical
persons - € 2.9 mln
Total Assets (mln
Euro)
Loans – € 6.3 mln
18.4
20
13.7
15
10
8.9
5
0
2004
2005
2006
Branches – 0
Employees – 53
Union of Banks of Armenia
Converse Bank CJSC
Converse Bank Assets
Total Capital – € 20 mln
Loans – € 26.5 mln
Securities Acquired – € 5.7 mln
Liabilities – € 54.2 mln
Total Deposits of Physical
persons - € 20.1 mln
Branches – 16
74.2
80
Total Assets (mln Euro)
Assets – € 74.2 mln
78.4
70
60
50.1
50
40
36
30
20
10
0
2003
2004
2005
2006
Employees – 356
Union of Banks of Armenia
HSBC Bank Armenia CJSC
HSBC Assets
Total Capital – € 15.08 mln
167.5
180
Assets – € 167.5 mln
Loans – € 64.6 mln
Securities Acquired – € 40.9 mln
Liabilities – € 152.5 mln
Total Deposits of Physical
persons - € 78.5 mln
Branches – 1
Total Assets (mln Euro)
160
133.69
140
120
95.7
100.8
100
80
60
40
20
0
2003
2004
2005
2006
Employees – 185
Union of Banks of Armenia
Inecobank CJSC
Inecobank Assets
Total Capital – € 12.8 mln
46.88
50
Loans – € 25.3 mln
Securities Acquired – € 4.8 mln
Liabilities – € 34.1 mln
Total Deposits of Physical
persons - € 12.6 mln
Branches – 4
Total Assets (mln Euro)
Assets – € 46.88 mln
40
31.6
30
20
17.1
11.7
10
0
2003
2004
2005
2006
Employees – 217
Union of Banks of Armenia
ITB Bank CJSC
ITB Bank Assets
Total Capital – € 6.3 mln
Loans – € 5.6 mln
Securities Acquired – € 1.2 mln
Liabilities – € 5.3 mln
Total Deposits of Physical
persons - € 1.6 mln
12
Total Assets (mln Euro)
Assets – € 11.59 mln
11.59
9.8
10
8
7.5
5.9
6
4
2
0
2003
2004
2005
2006
Branches – 4
Employees – 110
Union of Banks of Armenia
Mellat Bank CJSC
Mellat Bank Assets
Total Capital – € 7.7 mln
19.5
Assets – € 19.5 mln
Securities Acquired – € 7 mln
Liabilities – € 11.8 mln
Total Deposits of Physical
persons - € 5.2 mln
Total Assets (mln Euro)
Loans – € 7.1 mln
20
16.2
14
15
10
8.5
5
0
2003
2004
2005
2006
Branches – 0
Employees – 30
Union of Banks of Armenia
Prometey Bank LLC
Prometey Bank Assets
Total Capital – € 9.08 mln
Loans – € 5.9 mln
Securities Acquired – € 1.6 mln
Liabilities – € 8.8 mln
Total Deposits of Physical
persons - € 3.8 mln
Total Assets (mln Euro)
Assets – € 17.86 mln
17.86
20
12.7
15
9.6
10
6.8
5
0
2003
2004
2005
2006
Branches – 2
Employees – 75
Union of Banks of Armenia
Unibank CJSC
Unibank Assets
Total Capital – € 7.9 mln
64.7
Assets – € 64.7 mln
Securities Acquired – € 7.3 mln
Liabilities – € 56.8 mln
Total Deposits of Physical
persons - € 31.9 mln
Total Assets (mln Euro)
Loans – € 30.9 mln
70
60
50
36.4
40
30
19.5
19.8
20
10
0
2003
2004
2005
2006
Branches – 27
Employees – 393
Union of Banks of Armenia
VTB Bank (Armenia) CJSC
VTB Bank Assets
Total Capital – € 19.5 mln
95.36
100
Assets – € 95.36 mln
Securities Acquired – € 10.5 mln
Liabilities – € 75.9 mln
Total Deposits of Physical
persons - € 26.7 mln
Total Assets (mln Euro)
Loans – € 57.7 mln
90
77.7
80
70
60
60
50
40
33
30
20
10
0
2003
2004
2005
2006
Branches – 98
Employees – 927
Union of Banks of Armenia
19 496
20 012
6 645
6 400
6 316
5 677
ArmSwissBank
ITB
Armbusinessbank
6 800
BTA Investbank
Areximbank
7 084
7 731
7 917
7 924
Armimpexbank
Mellat Bank
ADB
Unibank
8 009
8 277
Artsakhbank
Ararat Bank
9 076
9 772
10 056
Prometey Bank
Cascade Bank
Anelik Bank
12 807
Inecobank
14 373
10 000
Armeconombank
15 081
20 000
HSBC Bank
VTB Bank
Converse Bank
30 000
23 179
40 000
ARDSHININVESTBANK
38 202
50 000
ACBA-Credit Agricole
Bank
Total Capital (mln Euro)
Comparative Chart on Total Capital
Union of Banks of Armenia
-
19 986
19 547
19 333
18 392
17 863
17 843
BTA Investbank
Mellat Bank
ADB
Cascade Bank
Prometey Bank
Ararat Bank
11 590
20 427
ArmSwissBank
ITB
23 605
28 518
34 691
46 883
47 795
Armimpexbank
Areximbank
Armbusinessbank
Inecobank
Artsakhbank
61 816
74 243
91 810
95 355
Anelik Bank
40 000
64 719
80 000
Unibank
Converse Bank
Armeconombank
VTB Bank (Armenia)
110 278
120 000
ACBA-Credit Agricole
Bank
144 447
160 000
ARDSHININVESTBANK
167 544
200 000
HSBC Bank Armenia
Total Assets (mln Euro)
Comparative Chart on Assets
Union of Banks of Armenia
Supervision Institute
Central Bank of Armenia
The Central Bank of Armenia (CBA) is a legal entity empowered with state functions of
banking and financial system supervision.
Primary goal of the CBA is price stability in the Republic of Armenia. The CBA coordinates
the primary goal with the Government of Armenia, as stipulated by the Armenian Law on
State Budget, and approved by the National Assembly of Armenia. The CBA itself decides
on the strategy of monetary policy it implements and target (intermediate and
operational) indicators that are contained in the monetary policy program and subject to
presentation to the National Assembly. The program outlines the main directions of the
monetary policy and the monetary instruments which the CBA uses in order to fulfill its
objectives.
CBA is vested with authority to ensure necessary conditions for a stable, liquid, solvent
and normally functioning banking system and defend interest of lenders and depositors.
The divisional structure of CBA is as follows:
Banking Supervision Department, Banking Methodology and Analyses Department,
Statistics Department and Legal Department
The average number of CBA staff in 2005 was 532 which is around 9.7% of banking area staff.
Union of Banks of Armenia
International Transfers
16
15
14
12
10
8
5
Privat Money
Contact
Lider
Migom
Unistream
Anelik
Bistraya
Pochta
0
2
1
1
1
0
0
STEFI
2
2
Travelex
3
Armenian
3
3
Money Gram
3
STB Express
4
Interexpress
5
6
Western
Total number of member banks
Commercial Banks in Armenia are included totally in 12 international transfer
sytems
The key systems available are Western Union, Money Gram, Anelik, Unistream,
Contact, etc
Total Turnover at 2005: € 0.6 billion (out : € 0.07 billion, in : € 0.5 billion)
Union of Banks of Armenia
International Transfers
2005
Transfer Volumes
€ 250,000,000.00
€ 200,000,000.00
€ 150,000,000.00
Out
In
€ 100,000,000.00
€ 50,000,000.00
Money
Gram
2900043
Anelik
Western
Union
3500000
25941
9359
500000
11236
1000000
1364
In
193613
Out
1500000
228894
2000000
16240
Western
Union
0
Unistriem
Out - € 6.5 billion
In – € 6.1 billion
2500000
Money
Gram
SWIFT
Number of Transfers
3000000
Number of Transfers
Anelik
Unistriem
€ 0.00
Union of Banks of Armenia
Transfers of physical persons via RA banks
for non-commercial purposes
Jan-Dec/ 2005
Figures are in
mln AMD
Russia
In
Out
Jan-Dec/ 2006
541308
83537
Russia
USA
82628
30671
Germany
15225
Great Britain
In
Out
739419
107835
USA
94491
13295
5346
Germany
10737
10068
9801
3428
Great Britain
8709
2628
Switzerland
9379
2490
Switzerland
6566
2463
France
6678
2560
France
6478
3581
Turkey
1622
7777
Turkey
1272
7846
UAE
4606
7775
UAE
2551
10048
Ukraine
5971
6030
Ukraine
7770
6228
Other
75600
40179
Other
82932
44444
Total
752819
189793
Total
960926
208436
Transfers - In
Germany
Great
Britain
Switzer
land
France
51957
9879
6373
6889
4118
-6155
-3169
81196
669
6081
4103
2897
-6574
-7497
Russia
USA
Year
2005
457771
Year
2006
631584
Turkey
UAE
Ukraine
Other
Total
-59
35421
563026
1542
38488
752490
Plastic Cards in Armenia
• Armenian Card (ArCa):
Armenian Card was established by Central Bank of RA and 10 trade banks in
March 2000 with the goal of establishment and development a new payment
system.
The Company presents service package, which gives an opportunity to banks
to issue and acquire ArCa Classic, ArCa Gold, ArCa Business, ArCa Debit, ArCa
Affinity, ArCa Co-branded and ArCa Platinum, using the modern technical,
technologies and software of the processing centre, as well as the Company's
professional assistance.
-Principle members – 17 banks
-The right to issue – 1 bank
• Visa Card
- Principle members – 7 banks
• MasterCard
- Principle members – 2 banks
- Affiliates – 10 banks
Union of Banks of Armenia
Plastic Cards
2006
Total Plastic Cards in Armenia

177,957
120000
Total ATMs and POS-Terminals
90574
75645
80000
1159
1200
1000
40000
800
11738
600
400
0
A rC a
Visa
M asterC ard
168
200
0
POS-Terminal
ATM
Plastic Cards
2006
Total plastic cards issued in 2006:
89,460

50000
Transactions at the banks
operating in Armenia and
NKR
43320
38551
40000
Volume
30000

€ 196.6 mln
20000
Quantity
7589
10000

0
ArCa
Visa
MasterCard
Total terminals installed in 2006:

2,316,000 transactions
356
Total transactions via ATMs
Volume
290
300

250
200
€ 129.7 mln
Quantity
150
66
100
50
0
POS
ATM

1,838,300 transactions
Plastic Cards
2006
Volume of Transactions
120
102
96
Number of Transactions
million Euro
100
80
1600000
60
40
22
1436200
1400000
1200000
20
898000
1000000
0
Visa
Total: € 220 mln
ArCa
MasterCard
800000
600000
400000
158000
200000
0
Visa
ArCa
MasterCard
Total: 2,492,200
Union of Banks of Armenia
Union of Banks of Armenia
Union of Banks of Armenia (UBA) is non-commercial union of legal entities, which was founded in
May 1995. Conceptual and continuous goal of UBA is directed to sustaining of member banks
interests. With this task we are working on finding solutions for acceptable supervision, legislation,
adopting international best practice and innovations and in general – building appropriate conditions
for sustainable development of banking industry in Armenia.
From 21 banks operating in Armenia 19 are members of UBA currently.
UBA is going on with following tasks:
 supporting of banking relations development and strengthening, systemizing of member banks
long term
projects implementation,
 taking part in creating and expertise of Armenian legislation connected with banking and financial
activities
and presenting at National Assembly,
 providing to banks such information as international banking materials, possible channels of
cooperation, etc.,
 supporting in banking innovations, helping banking area to be integrated to international banking
system, and
capturing of international standards,
 Executive education and trainings for management,
 organization of seminars, conferences and workshops.
Union of Banks of Armenia
Union of Banks of Armenia
UBA is actively cooperating with Central Bank of Armenia (CBA), National Assembly of RA, Government and
other state bodies of the Republic of Armenia. The aim of mentioned cooperation is promotion of favorable
environment for banking activity. Management of UBA is constantly participating at board meetings of CBA,
which allows expressing banking area joint opinion concerning discussing questions. Representative of CBA is
also constantly taking part in UBA's Board meetings, which allows banks to take into account CBA's position
during making decisions. Collaboration with other state bodies is based on necessity concerning separate
questions.
UBA is also cooperating with various international and local NGO's. Continuous works on mutual projects are
organizing.
UBA places proper attention to international relations. During 2004 UBA has agreed on mutual cooperation
with around 15 international banking associations and other banking institutes. Memorandums of
understanding have been signed with Association of Russian Banks (2003), Hellenic Banks Association and
Association of Financiers of Kazakhstan. During 2005 UBA intended to sign similar memorandums with other
associations.
In summer 2004 UBA applied to European Banking Federation (FBE) for becoming associative member. In
December 2004, reviewing presented application materials FBE Executive Board has positively approved
UBA's application. According to FBE's rules, the final decision of membership will discussed in 1 April 2005
during 30th FBE Board meeting and UBA approved officially as FBE’s associative member.
FBE has 35 National Banking Associations as its members from all across the Europe, and it represents the
interests of over 4,500 banks with over 2 million employees and total assets of over 20 trillion euros. 15
members of FBE are associative members (Russian Federation, Latvia, Estonia, Holland,, etc). From CIS
countries the only member is Russian Federation.
Union of Banks of Armenia
Union of Banks of Armenia
Our Members
Union of Banks of Armenia
Union of Banks of Armenia