HSBC Bank Armenia
A surge in net profit last year combined with an expanded presence in the local market prompted the judges to cite HSBC Bank Armenia for the award.
The bank more than doubled net profit in 2002 following a double-digit decline in the figure the previous year. As a result, ROE rose to 21.48%, while the bank’s cost-to-income ratio declined 10 percentage points to 48.6%.
Part of the profit growth was a result of the bank’s success in expanding its presence in Armenia. Its share of the local banking market rose to 30% in 2002 from 22.3% in 2001 as its services continued to be well received. HSBC is, for example, the only Master Card agent and has installed seven cash machines nationwide, more than any other bank.
HSBC Bank Armenia also expanded its foreign exchange and banknote trading volumes in the local market, with trading income and profits from the sales of cash banknotes rising by 84% and 83% over 2001 respectively.
“HSBC’s strategy in Armenia is to maintain its positions as a ‘customer-driven’ bank by offering banking products of an international standard and nature,” commented Charles Gregory, the bank’s chief executive. “Our balance sheet has recently exceeded $100m on a sustainable basis, providing further evidence that we are the bank of choice for personal, commercial and international customers alike.”
