YEREVAN, March 5, /ARKA/. HSBC Bank Armenia closed 2009 with AMD 2.6 billion pre-tax profit, 48 per cent below the comparable figure for 2008, Gevork Tarumian, financial director of HSBC Bank Armenia, told journalists Friday.

‘The bank considers these figures quite positive as only few banks closed the year with profits,’ Tarumian said. In his words, pre-tax profit for the year to 31 December 2009, after excluding revaluation loss of financial assets and liabilities, was AMD 4.6 billion, 4 per cent below the comparable figure for 2008.

“If we leave depreciation of financial assets out of account, the decline was due to overestimation of foreign currency, although we consider it a serious achievement in the context of 14.4% decline of Armenia’s economy last year,’ he said. He also noted that total assets at 31 December 2009 were up 11.5 per cent at AMD 136 billion, customer deposits increased by 30 per cent, reaching AMD 111 billion. This, he said, is evidence of high customer trust in the bank.

‘The only direction where the bank registered a certain decline was crediting where gross customer loans decreased by 10 per cent to AMD 66 billion at 31 December 2009,’ Tarumian said. He attributed it to the situation in Armenian economy, because at a certain period of time, prompted by the growing risks, the bank displayed ‘selective approach to extending loans.’

Astrid Clifford, Chief Executive Officer of HSBC Bank Armenia cjsc, said the HSBC Group achieved significant results in 2009, especially that the last two years were quite challenging. According to her, pre-tax profit was up US$4.7 billion or 56 per cent to US$13.3 billion, revenues were up 8 per cent, costs down 4 per cent.

‘The bank made serious steps towards strengthening of its capital and raising liquidity level, by building up its capital by $7.8 billion and preserving its status of a profitable, independent and effective bank for its shareholders,’ she said. According to her, the bank paid $24 billion dividends to 220,000 shareholders over the last three years.

“These indicators demonstrate that irrespective of global economic situation HSBC is one of the world’s strongest and most profitable banks, and that its financial strength has allowed it to support its customers through difficult times,’ she said.

HSBC Bank Armenia cjsc was the first international bank to open in Armenia in 1996. The bank is a joint venture between the HSBC Group, which has 70 percent ownership, and members of overseas Armenian businesses. The bank offers a wide range of products and services to individual as well as corporate customers, including personal financial services, commercial banking and treasury and capital markets services. Thanks to the HSBC network in 88 countries and territories, the bank is uniquely positioned to provide truly international services for its customers.

HSBC Bank Armenia cjsc is one of the leading banks in the foreign exchange market. It has 9 branches and offices in Yerevan, as well as 50 ATMs located throughout the city. The Bank is continuously introducing innovative technologies and first-on-market solutions to achieve top customer service and increase the efficiency of operations. HSBC has launched telephone banking services and internet banking services in 2009, which took customer service to a new level. Its customers have now a choice of branch, ATM, telephone and internet banking. In 2010 the Bank will continue to invest in technology, implementing self service machines, debit cards and chip and pin cards in Armenia. As a socially responsible organization HSBC Bank Armenia continually invests into sustainability projects focusing on education for underprivileged groups and environment. ($1 – 386.53 Drams). -0-