Union of Banks of Armenia Union of Banks of Armenia Yerevan, Republic of Armenia, January 2007 Yerevan, Republic of Armenia, January 2007 Armenian Banking Area Armenian Banking Area Developments and Trends Developments and Trends Figures as at 01 Figures as at 01 January, January, 200 2007
46
Embed
Union of Banks of Armenia Yerevan, Republic of Armenia, January 2007 Armenian Banking Area Developments and Trends Figures as at 01 January, 2007.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Union of Banks of ArmeniaUnion of Banks of Armenia
Yerevan, Republic of Armenia, January 2007Yerevan, Republic of Armenia, January 2007
Armenian Banking AreaArmenian Banking AreaDevelopments and TrendsDevelopments and Trends
Figures as at 01 Figures as at 01 January,January, 200 20077
General Descriptive FiguresGeneral Descriptive Figures
Total Capital –Total Capital – € 0.251 billion€ 0.251 billion
Total Assets –Total Assets – € 1.137 billion€ 1.137 billion
Total loans –Total loans – € 0.53 billion€ 0.53 billion
Total Liabilities –Total Liabilities – € 0.886 billion€ 0.886 billion
Total Deposits of Physical persons - Total Deposits of Physical persons - € 0.302 € 0.302
billionbillion
Total number of banks –Total number of banks – 2121
Number of Branches –Number of Branches – 298 298
Total staff –Total staff – 56945694Union of Banks of ArmeniaUnion of Banks of Armenia
Key IndexesKey IndexesTotal ViewTotal View
Profitability IndexesProfitability Indexes
RReturn on eturn on AAssetsssets (ROA) – 3.13% (ROA) – 3.13%
RReturn on eturn on EEquityquity (ROE) – 14.2% (ROE) – 14.2% CapitalizationCapitalization IndexesIndexes
Total Capital/Total Assets – 22.08Total Capital/Total Assets – 22.08
Total Capital/Liabilities – 28.33Total Capital/Liabilities – 28.33
Union of Banks of ArmeniaUnion of Banks of Armenia
98
5143
27
16 16 148 8 4 4 3 2 2 1 1
0
30
60
90
120V
TB
Ba
nk
(A
rme
nia
)
AR
DS
HIN
INV
ES
TB
AN
K
Arm
ec
on
om
ba
nk
Un
iba
nk
AC
BA
-Cre
dit
Ag
ric
ole
Ba
nk
Co
nv
ers
e B
an
k
Art
sa
kh
ba
nk
An
eli
k B
an
k
Are
xim
ba
nk
Ine
co
ba
nk
ITB
Ara
rat
Ba
nk
BT
A I
nv
es
tba
nk
Pro
me
tey
Ba
nk
Arm
bu
sin
es
sb
an
k
HS
BC
Ba
nk
Arm
en
ia
Nu
mb
er o
f B
ran
ches
Banks with BranchesBanks with Branches
• Average number of branches for one bank – 14Average number of branches for one bank – 14• Number of banks without branches - 5 Number of banks without branches - 5
Union of Banks of ArmeniaUnion of Banks of Armenia
Total number of staff - Total number of staff - 56945694 Average number of staff for one bank – Average number of staff for one bank – 271271 Average profit on one employee - Average profit on one employee - € 7,851€ 7,851
Average assets on one employee – Average assets on one employee – € 199,684€ 199,684 Administrative expenses share in total expenses – Administrative expenses share in total expenses – 61%61%
The average number of CBA staff in 2005 was 532 which is around 9.7% of banking area staff.
The Central Bank of Armenia (CBA) is a legal entity empowered with state The Central Bank of Armenia (CBA) is a legal entity empowered with state functionsfunctions of banking and financial system supervision of banking and financial system supervision. .
Primary goal of the CBA is price stability in the Republic of Armenia. The CBA 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 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 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 Armenia. The CBA itself decides on the strategy of monetary policy it implements and target (intermediate and operational) indicators that are implements and target (intermediate and operational) indicators that are contained in the monetary policy program and subject to presentation to the contained in the monetary policy program and subject to presentation to the National Assembly. The program outlines the main directions of the monetary 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 policy and the monetary instruments which the CBA uses in order to fulfill its objectives. objectives.
CBACBA is vested with authority to ensure necessary conditions for a stable, liquid, is vested with authority to ensure necessary conditions for a stable, liquid, solvent and normally functioning banking system and defend interest of solvent and normally functioning banking system and defend interest of lenders and depositors.lenders and depositors. The divisional structure of CBA is as follows: The divisional structure of CBA is as follows:
Banking Supervision Department, Banking Methodology and Analyses Banking Supervision Department, Banking Methodology and Analyses Department, Statistics Department and Legal DepartmentDepartment, Statistics Department and Legal Department
Union of Banks of ArmeniaUnion of Banks of Armenia
InternationalInternational TransfersTransfers
Commercial Banks in Armenia are included totally in 12 international Commercial Banks in Armenia are included totally in 12 international transfer sytemstransfer sytems
The key systems available are The key systems available are Western UnionWestern Union, , Money GramMoney Gram, , AnelikAnelik, , UnistreamUnistream, , ContactContact, etc, etc
Total Turnover at 2005: € 0.6 billion (out : € 0.07 billion, in : € 0.5 billion)
Union of Banks of ArmeniaUnion of Banks of Armenia
15
5 5
3 3 3 32 2
1 1 10 0
0
2
4
6
8
10
12
14
16
We
ste
rn
Bis
tra
ya
Po
ch
ta
An
eli
k
Un
istr
ea
m
Mig
om
Lid
er
Co
nta
ct
Pri
va
t M
on
ey
Inte
rex
pre
ss
ST
B E
xp
res
s
Mo
ne
y G
ram
Arm
en
ian
Tra
ve
lex
ST
EF
I
Tota
l n
um
ber
of
mem
ber
banks
InternationalInternational TransfersTransfers
€ 0.00
€ 50,000,000.00
€ 100,000,000.00
€ 150,000,000.00
€ 200,000,000.00
€ 250,000,000.00U
nis
trie
m
We
ste
rnU
nio
n
An
eli
k
Mo
ne
yG
ram
Out
In
16
24
0
11
23
6
93
59
13
64
29
00
04
3
22
88
94
19
36
13
25
94
1
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
Mo
ney
Gra
m
An
elik
Un
istr
iem
Weste
rn
Un
ion
Nu
mb
er
of
Tra
nsfe
rs
Out
In
Transfer VolumesTransfer Volumes
Number of TransfersNumber of Transfers
SWIFTOut - Out - €€ 6.5 billion 6.5 billionIn – In – €€ 6.1 billion 6.1 billion
2005
Union of Banks of ArmeniaUnion of Banks of Armenia
TransfersTransfers of physical persons via RA banks of physical persons via RA banks for non-commercial purposesfor non-commercial purposes
Jan-Dec/Jan-Dec/ 2005 2005 InIn OutOut
RussiaRussia 541308541308 8353783537
USAUSA 8262882628 3067130671
GermanyGermany 1522515225 53465346
Great BritainGreat Britain 98019801 34283428
SwitzerlandSwitzerland 93799379 24902490
FranceFrance 66786678 25602560
TurkeyTurkey 16221622 77777777
UAEUAE 46064606 77757775
UkraineUkraine 59715971 60306030
Other Other 7560075600 4017940179
TotalTotal 752819752819 189793189793
Jan-Dec/ Jan-Dec/ 20062006 InIn OutOut
RussiaRussia 739419739419 107835107835
USAUSA 9449194491 1329513295
GermanyGermany 1073710737 1006810068
Great BritainGreat Britain 87098709 26282628
SwitzerlandSwitzerland 65666566 24632463
FranceFrance 64786478 35813581
TurkeyTurkey 12721272 78467846
UAEUAE 25512551 1004810048
UkraineUkraine 77707770 62286228
Other Other 8293282932 4444444444
TotalTotal 960926960926 208436208436
RussiaRussia USAUSA GermanyGermany Great Great
BritainBritainSwitzerSwitzer
landland FranceFrance TurkeyTurkey UAEUAE UkraineUkraine Other Other TotalTotal
Year Year 20052005 457771457771 5195751957 98799879 63736373 68896889 41184118 -6155-6155 -3169-3169 -59-59 3542135421 563026563026
Year Year 20062006 631584631584 8119681196 669669 60816081 41034103 28972897 -6574-6574 -7497-7497 15421542 3848838488 752490752490
TransfersTransfers - In - In
Figures are Figures are in mln AMDin mln AMD
PlasticPlastic CardsCards inin ArmeniaArmenia
• Armenian Card (AArmenian Card (ArrCCaa):):Armenian Card was established by Central Bank of RA and 10 trade Armenian Card was established by Central Bank of RA and 10 trade banks in March 2000 with the goal of establishment and development banks in March 2000 with the goal of establishment and development a new payment system. a new payment system.
The Company presents service package, which gives an opportunity The Company presents service package, which gives an opportunity to banks to issue and acquire ArCa Classic, ArCa Gold, ArCa Business, to banks to issue and acquire ArCa Classic, ArCa Gold, ArCa Business, ArCa Debit, ArCa Affinity, ArCa Co-branded and ArCa Platinum, using ArCa Debit, ArCa Affinity, ArCa Co-branded and ArCa Platinum, using the modern technical, technologies and software of the processing the modern technical, technologies and software of the processing centre, as well as the Company's professional assistance.centre, as well as the Company's professional assistance.
-Principle members – 17 banks Principle members – 17 banks -The right to issue – 1 bankThe right to issue – 1 bank
• Visa CarVisa Cardd - Principle members- Principle members – 7 banks– 7 banks
Union of Banks of ArmeniaUnion of Banks of Armenia
1436200
898000
158000
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
Visa ArCa MasterCard
Number of Number of TransactionsTransactions
Total: 2,492,200Total: 2,492,200
20020066
mill
ion E
uro
Volume of TransactionsVolume of Transactions
Total: Total: € 220 € 220 mlnmln
10296
22
0
20
40
60
80
100
120
Visa ArCa MasterCard
UnionUnion ofof BanksBanks ofof ArmeniaArmenia
Union of Banks of Armenia (UBA) is non-commercial union of legal entities, which was 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 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 of member banks interests. With this task we are working on finding solutions for acceptable supervision, legislation, adopting international best practice and innovations acceptable supervision, legislation, adopting international best practice and innovations and in general – building appropriate conditions for sustainable development of banking and in general – building appropriate conditions for sustainable development of banking industry in Armenia.industry in Armenia.
From 21 banks operating in Armenia 19 are members of UBA currently. From 21 banks operating in Armenia 19 are members of UBA currently.
UBA is going on with following tasks:UBA is going on with following tasks: supporting of banking relations development and strengthening, systemizing of supporting of banking relations development and strengthening, systemizing of member banks long term member banks long term projectsprojects implementation, implementation, taking part in creating and expertise of Armenian legislation connected with banking taking part in creating and expertise of Armenian legislation connected with banking and financial activities and financial activities and presenting at National Assembly, and presenting at National Assembly, providing to banks such information as international banking materials, possible providing to banks such information as international banking materials, possible channels of cooperation,channels of cooperation, etc.,etc., supporting in banking innovations, helping banking area to be integrated to supporting in banking innovations, helping banking area to be integrated to international banking system, and international banking system, and capturing of international standards, capturing of international standards, Executive education and trainings for management, Executive education and trainings for management, organization of seminars, conferences and workshops.organization of seminars, conferences and workshops.
Union of Banks of ArmeniaUnion of Banks of Armenia
UnionUnion ofof BanksBanks ofof ArmeniaArmeniaUBA is actively cooperating with Central Bank of Armenia (CBA), National Assembly of RA, 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 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 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 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 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 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 decisions. Collaboration with other state bodies is based on necessity concerning separate questions.questions.
UBA is also cooperating with various international and local NGO's. Continuous works on UBA is also cooperating with various international and local NGO's. Continuous works on mutual projects are organizing.mutual projects are organizing.
UBA places proper attention to international relations. During 2004 UBA has agreed on mutual 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. cooperation with around 15 international banking associations and other banking institutes. Memorandums of understanding have been signed with Association of Russian Banks (2003), Memorandums of understanding have been signed with Association of Russian Banks (2003), Hellenic Banks Association and Association of Financiers of Kazakhstan. During 2005 UBA Hellenic Banks Association and Association of Financiers of Kazakhstan. During 2005 UBA intended to sign similar memorandums with other associations.intended to sign similar memorandums with other associations.
In summer 2004 UBA applied to European Banking Federation (FBE) for becoming associative In summer 2004 UBA applied to European Banking Federation (FBE) for becoming associative member. In December 2004, reviewing presented application materials FBE Executive Board 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 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 membership will discussed in 1 April 2005 during 30th FBE Board meeting and UBA approved officially as FBE’s associative member. officially as FBE’s associative member.
FBE has 35 National Banking Associations as its members from all across the Europe, and it 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 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, 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.Estonia, Holland,, etc). From CIS countries the only member is Russian Federation.
Union of Banks of ArmeniaUnion of Banks of Armenia