Ameriabank CEO Artak Hanesyan said that “the bank has enjoyed a steadily successful trajectory over the past few years founded on strong fundamentals with an effectively diversified balance sheet, a sound corporate governance and a clear vision for the future.”

“In a challenging environment marked by geopolitical tension and market volatility, the bank has demonstrated resilience and outperformed the market benchmarks across several key financial indicators,” Artak Hanesyan said in an interview with Global Finance magazine.

He noted that they have been able to apply a balanced risk management mechanism and an enhanced liquidity management framework to improve financial efficiency and deliver solid risk-adjusted profitability.

“Total assets reached AMD 1.33 trillion as of September 2023 with 12% compound annual growth rate since 2019. Ameriabank is the largest lender in the market with AMD 902 bn  loan portfolio and 19.1% market share as of 3Q 2023. In line with our universal banking model we continued to diversify our loan book further, with strong double digit growth of Retail and SME loans portfolio over the recent years, contributing to a loan distribution where Retail and SME loans comprise 61.2% of the total loan book.

The quality of the bank’s loan portfolio has also continuously improved starting from 2020. Non-performing loans stood at 2.16% (vs 2․97% Market) as of September 2023, continuing a downward trend, while maintaining a level below the long-term average and pre-pandemic level (2.87%). Total deposits and bonds, have registered a 14.2% growth year-to-date and a 27% year over year surge, primarily driven by time deposits. Both the Corporate and Retail segments expanded their account holder base and effectively augmented their deposit portfolios, despite the uncertain external environment.

Our total equity increased by 10.1% in the first three quarters of 2023, reaching 190 billion drams, underpinned by a 17% CAGR since 2019 fuelled by robust profit generation. In fact our net profit has been growing in double digits for the recent years due to both net interest and non-interest income, proving the sustainability of the bank’s profit generation. As a result, the profitability indicators are at historically high levels (NIM stood at 6.4%, ROE at 26% and ROA at 3.6%), significantly outperforming the market average as well.

This dynamic performance has driven impressive investor interest and ensures that Ameriabank will continue on its transformational journey. In fact in this respect, the bank’s success reflects the positive macroeconomic environment: Armenia’s economy demonstrated resilience and high growth potential with 12.6% GDP growth in 2022 at the same time managing to maintain the lowest inflation rate and most stable currency in the region.”

Artak Hanesyan stressed that Ameriabank has always taken care to see that its corporate governance aligns with the best international financial and institutional practices.

“This has proven essential to protect the bank’s fundamentals and its credibility. The absolute majority of the Board of Directors, who are responsible for the bank’s overall management, are independent non-executive directors, with diverse international background and profound experience in the financial world. The bank has also drawn strength from its diverse and dedicated shareholder base, having also international development finance institutions as shareholders (EBRD & ADB). Ameriabank has made its commitment to the highest ethical standards and rigorous compliance with international requirements the hallmark of its operations.

Financial soundness indicators have remained at a prudent level even during most challenging times and continuously improving profitability metrics demonstrate the bank’s financial health. In particular, the bank was fully comfortable in meeting the increased Basel 3 buffer requirements, having built the necessary cushions in advance,” he noted.

Ameriabank CEO said the bank has been one of the region’s foremost institutions in promoting digital transformation, achieving a 69% online banking penetration rate and an 84% cash offloading rate:

“We see this digital transformation as opening up new horizons beyond banking: we can offer these empowering platforms to a wide range of sectors, markets and potential customers. From healthcare to travel to fintech education, where an integrated application of data and opportunity can open new vistas and clarify options, we are partnering with key players to leverage our technological expertise and take it to market.”