Ameriabank expected to raise retail loan portfolio 15% for first half of 2013

Ameriabank is expected to raise the retail loan portfolio 15% for the first half of 2013, Arman Barseghyan, Director for Retail Banking at Ameribank CJSC, said Tuesday.

Commenting on ArmInfo's question about retail services that are largely in demand in the regions, A.  Barseghyan said that demand in the regions fundamentally differs from the one in Yerevan. In particular, he said, deposits Ameriabank has provided in the regions significantly yield to the deposits provided in Yerevan. Consumer loans, SME finance are mainly in demand, amid low demand for mortgage loans.  In response to ArmInfo's question if the bank's 1.4 bln profits for Q1 2013 were from corporate or retail lending, the banker said that the share of corporate loans in the bank's loan portfolio is significant and the interest incomes from it are the highest. On the other hand, the share of deposits in retail portfolio is the highest.

As regards changes in the market of consumer lending in Armenia, he said that retail lending has become a priority for most banks.

"Banks began studying diversification of the consumer lending segment as a risk-reduction measure, which, in turn, has stiffened competition in the market. Consequently, there is demand for new bank products and services,' Barseghyan said.

He is sure that there is mainly price competition in the market of consumer loans, because the products of banks are not very different.

By data of the Financial Raking of Armenian Banks prepared by ArmInfo Agency, Ameriabank was among top three banks in terms of provision of crediting for Q1 2013.  The bank increased this indicator by 18.5% versus Q1 2012 and 10% for Q1 2013 to 168.3 bln drams. The share of consumer loans in total portfolio exceeded 17 bln drams or 10.7%, with a 9% growth for Q1. Loans to economy sectors totaled 134.2 bln drams, growing 14.7% versus Q1 2012 and over twofold for Q1 2013. The bank is the leader in terms of liabilities - a 66.7% growth versus Q1 2012 and 30% for Q1 2013 to 270.7 bln drams. Time deposits of the bank exceeded 90.2 bln drams or 34.3% of total liabilities as of April 1 2013, with a 30% growth versus Q1 2012.  Total incomes grew 18% amid 11% growth of expenses versus Q12012. Profits grew 45% over the year. The bank retained its position among top three banks in terms of profits.  Ameriabank CJSC  is a universal bank offering corporate, investment and retail banking services in a comprehensive package of banking solutions. Ameria Group became the major shareholder of the bank in Nov 2011 - 99.99%. The bank serves 9 branches: 5 in Yerevan and by one branch in Kajaran, Dilijan, Vanadzor and NKR.