31-Mar-2018 INVESTORS PRESENTATION

Transcription

1 31-Mar-2018 INVESTORS PRESENTATION

2 Content Ameriabank at a Glance Armenia Macro Indicators Armenian Banking Sector Indicators Balance Sheet Income statement Ratios Annex 1: Statements and Peers 1

3 Major Achievements At a Glance Assets of AMD 660 bn 1 st The leading bank in Armenia per Q results Liabilities of AMD 577 bn Loan Portfolio of AMD 459 bn Equity of AMD 83 bn 1 st 1 st 1 st Profit of AMD 2.6 bn 2 nd Asian Development Bank s (ADB) First Equity Deal in Armenia ADB became a shareholder of Ameriabank with USD 30M equity investment. ADB has also approved a loan of up to $30 million to Ameriabank. 2

4 Corporate Governance Our Board of Directors ANDREW MKRTCHYAN Chairman Chairman of of the the Board Board More than 20 years of experience in investment and management advisory by standing at the roots of investment banking establishment in Armenia, board member in a number of private/public organizations. RUBEN VARDANYAN Non-executive Board Member Prominent impact investor and investment banker with more than 25 years of experience, key figure in Russia s capital markets establishment, a Founding Partner of Moscow School of Management SKOLKOVO, board member at numerous entities in Russia and abroad, member of the Economic Advisory Board at IFC. NOUBAR AFEYAN, PhD Non-executive Board Member Almost 30 years of experience in venture capital management (MP/CEO Flagship Pioneering, cofounder of over 35 successful life science and technology startups) and a senior lecturer at MIT, serves on a number of public and private company boards. ROBERT VON REKOWSKY Non-executive Independent Board Member Almost 30 years of experience in global asset management, specialized in emerging markets funds, a former vicepresident at Emerging Markets Strategy and portfolio manager for Fidelity Investments. OLEG TSARKOV Non-executive Board Member More than 20 years of experience in investment banking and advisory services, a founding Managing Partner at Svarog Capital Advisors, CEO at Phoenix Advisors. former head of IB at Troika Dialog, ALEXEY GERMANOVICH Non-executive Board Member More than 15 years of experience in supervisory and executive boards in top Russian companies from a variety of industries, one of Russia's leading professionals in corporate communications and investor relations. PIERRE GURDJIAN Non-executive Board Member More than 25 years of experience in advisory business, President of the Board of Directors of the Université Libre de Bruxelles, a Board member in various universities and international organizations, was a Senior managing Partner of Belgian- Luxemburgian office at McKinsey & Company. 3

5 Our Management Board Names talk for themselves ARTAK HANESYAN CEO, Chairman of Management Board GEVORG TARUMYAN CFO, Deputy Director, General Legal, Director Ameriabank GAGIK SAHAKYAN Director, Corporate Banking TIGRAN JRBASHYAN Director, Development ARTAK HANESYAN Distinguished banker with around 25 years of experience in the banking system of Armenia. Almost 25 years of experience in the financial system and 15 years of experience as CFO in commercial banks of Armenia. More than 7 years of experience in corporate banking and around 15 years experience in management advisory. More than 25 years of research experience in private and international organizations, author of books and over 130 scientific articles and publications. ANDRANIK BARSEGHYAN Head, Risk Management Center ARMAN BARSEGHYAN Director, Retail Banking GOHAR KHACHATRYAN Chief Accountant ARTHUR BABAYAN Director, Trading Around 25 years of experience in financial institutions risk management and automation technologies. Around 20 years of experience in operations and retail banking management in banking system of Armenia. More than 25 years of experience holding key positions both in the regulatory body of the banking system and in private bank Around 20 years of experience in trading in various commercial banks of Armenia. 4

6 Key strengths Here and Beyond LEADING BANK IN ARMENIA INNOVATOR & TREND SETTER IMPRESSIVE GROWTH STRONG TEAM & CORPORATE CULTURE 1st by key financial indicators since 2014 Omni channel banking platform Above 40% 9-yr CAGR in key financial metrics since 2007 Strong management team with 20+ years of experience in banking and advisory Largest corporate lender in Armenia since 2010 Comprehensive digital transformation Major contributor to RA banking sector development with above market average growth rates Best practice corporate governance principles 1st bank in Armenia to cross the threshold of USD 1bln (AMD 516 bln) in assets (in 2015) Award-winning bank with superior customer service Among top 5 retail banks in Armenia after strategic shift announced in 2011, with tripled Retail & SME loan portfolio transparent and purely meritocracy-based system of evaluation, flat and open-spirit working environment 5

7 Universal Bank Range of Services CORPORATE BANKING RETAIL BANKING INVESTMENT BANKING Lending Consumer loans M&A Guarantees Mortgage Corporate finance Financial lease Car loans Debt Capital markets Factoring Credit cards (Visa, MC, ArCa) Equity Capital Markets Letter of Credit Deposit products IPO Advisory Project financing Metal accounts Brokerage Deposit products Investment loans Investment advisory 6

8 Recognition and honors for achievements Ongoing appreciation and quality recognitions by the most reputable global institutions BEST BANK IN ARMENIA BY THE BANKER 2017, 2016, 2015, 2013, 2010 THE BEST BANK IN ARMENIA BY GLOBAL FINANCE 2017, 2016, 2015, 2014, 2013, 2012 EUROMONEY AWARD FOR EXCELLENCE AS THE BEST BANK IN ARMENIA 2017, 2016, 2014, 2012, 2011 Numerous awards and recognitions from global institutions, agencies and IFIs in trade finance, investment banking, capital markets and custody services. 7

9 IFI projects Partnership with most reputable financial institutions Trade finance Energy Efficiency SME Agribusiness 8

10 CSR Projects Education Scholarships to gifted children with exceptional academic performance to study at international UWC Dilijan School. Cooperation with Sevan Startup Summit Main partner of the Summit awarded the Big Battle prize. During the Summit the participants shared mode of life, got new knowledge, competed, won and had fun. The Summit gathers startups and investors from all over the world. Fintech Startups supporting Cooperation with Seedstars World Competition as a silver partner of Yerevan Phase. Many of the startups offered solutions based on artificial intelligence and machine learning. Despite the variety of spheres solutions were mainly related to education, healthcare, e-commerce and finance. Children Healthcare Every year making donations for urgent medical treatments of children. Ameriabank has been cooperating with Let s Help The Armenian Children NGO providing financial assistance for treatment of children with lifethreatening diseases. CSR COMMITTEE At the end of 2016 Ameriabank created CSR Committee comprised of the staff members that have shown active and dedicated involvement in social activities. The goal of the CSR committee is to improve the transparency of the decision making process in CSR, to ensure higher engagement level throughout Ameria team in the implementation process of CSR activities and to improve the choice, implementation and monitoring processes of Ameriabank CSR.

11 Ameriabank at a Glance Armenia Macro Indicators Armenian Banking Sector Indicators Balance Sheet Income Statement Ratios Annex 1: Statements and Peers 10

12 Armenia: facts and rankings Currency: Dram (AMD) Population: 2,972.7 thous. ( ) Economic freedom index th out of 180 (Mostly Free) Ease of doing business th out of 190 Human development index (HDI) th out of 188 GDP: 11.5 bln (2017, current US$) GDP per capita: 3,872 (2017, current US$) Moody s (March 2018) B1 (positive) Fitch Ratings (December 2017) B+ (positive) Competitiveness index rd out of

13 bln USD mln USD bln USD bln USD Armenia macro indicators AMD/USD (daily average) Jan-Mar % -0.9% Jan-Mar 2017 Current account (BOP) Jan-Mar International Reserves Jan-Mar 2016 AMD/EUR (daily average) % 14.4% Jan-Mar Jan-Mar Jan-Mar 2016 AMD/RUB (daily average) Import and export Jan-Mar 2016 Jan-Mar 2017 Jan-Mar 2018 Import Export Net export Remittances % 2.5% Jan-Mar 2017 Jan-Mar 2018 HIGHLIGHTS In 1Q2018, IEA (GDP proxy) comprised 10.6%. Overall expectations for Y2018 economic growth are quite positive; the high growth rate is expected to be maintained in 2018 as well. Trade and manufacturing are expected to continue to be the main contributors to GDP growth in 2018 as well. AMD/USD rate remained relatively stable in 1Q2018. There was a slight increase of CPI, which comprised 3.3% for the 1 st quarter, while over the previous year it was fluctuating around 1%. 15% 26% 14% % Mar Mar Mar-2018 Jan-Mar 2016 Jan-Mar 2017 Jan-Mar 2018 CPI (12m) Index of Economic Activity (IEA 12m) In 1Q2018, Remittances and CBA reserves increased by 14% and 9% yoy respectively. Trade deficit slightly increased due to over 30% growth of both imports and exports. Mar-2016 Mar-2017 Mar-2018 Mar-2016 Mar-2017 Mar-2018 * Remittances include total commercial and non-commercial transfers of physical persons through the banking system; Sources: National Statistical Service of Armenia, Central Bank of Armenia 12

14 Ameriabank at a Glance Armenia Macro Indicators Armenian Banking Sector Indicators Balance Sheet Income statement Ratios Annex 1: Statements and Peers 13

15 bln AAMD mln AMD bln AMD bln AMD Armenian banking sector indicators Assets Loans HIGHLIGHTS 4, % 4, % 4,416 2, % 1.2% 2,658 2,691 All banks were profitable in 1Q2018, and the banking sector Net Profit increased by 85% yoy (42.8% for the banks profitable in both periods). Deposits Profit Significant growth of net profit and profitability ratios is mainly due to banks that previously experienced large losses. 2, % 2, % 2,568 ROA 1.1% 1.1% 1.8% 1.5% 3, % 85% 10,871 ROE 10.2% 11.4% 20,130 1Q2016 1Q2017 1Q % Ameriabank s Net Profit increased by 56%. Ameriabank s ROE comprised 13.4%, over-performing market average by 2.1pp. 0.9% 0.8% Market Ameriabank 5.6% 5.0% 11.3% Market Ameriabank NIM CIR CAR 5.2% 5.0% 4.9% 3.6% 3.5% 4.3% Market Ameriabank 49.2% 48.5% 45.9% 41.7% 40.2% 44.2% Market Ameriabank 20.0% 18.6% 18.6% 15.9% 12.7% 14.1% Market Ameriabank 14

16 10.1% 11.5% 13.7% 12.7% 16.7% 15.6% 14.7% 13.2% 15.7% 14.9% 18.0% 17.1% Ameriabank Position in Armenian Banking Sector ASSETS mln AMD LOANS TO CUSTOMERS mln AMD #1Q2018 #2017 BANK AMOUNT OUR SHARE #1Q2018 #2017 BANK AMOUNT 1 1 Ameriabank 660, Ameriabank 458, ABB 609, Ardshin 405, Ardshin 557, ABB 391, ACBA 319, ACBA 198, Inecobank 273, Q Inecobank 177,462 LIABILITIES mln AMD CUSTOMER DEPOSITS mln AMD #1Q2018 #2017 BANK AMOUNT OUR SHARE #1Q2018 #2017 BANK AMOUNT 1 1 Ameriabank 576, ABB 443, ABB 569, Ameriabank 340, Ardshin 491, Ardshin 330, ACBA 256, ACBA 175, Inecobank 222, Q Converse Bank 175,001 EQUITY mln AMD NET PROFIT mln AMD #1Q2018 #2017 BANK AMOUNT OUR SHARE #1Q2018 #1Q2017 BANK AMOUNT 1 1 Ameriabank 83, Artsakh Bank 2, Ardshin 66, Ameriabank 2, ACBA 63, Ardshin 2, Inecobank 50, ACBA 2, Anelik Bank 47, Q Inecobank 2,029 OUR SHARE Q2018 OUR SHARE Q2018 OUR SHARE 1Q2017 1Q2018 HIGHLIGHTS The largest bank in Armenia. The leading bank by assets, loans and equity. CAGR of the Bank s assets for the last 5 years has been 16%, resulting in market share increase from 12.1% to 14.9%. CAGR of total loans and deposits for the last 5 years has been 24% and 15%, respectively, resulting in market share change from 10.2% to 17.1% and from 13.6% to 13.2%, respectively. The Bank s share in net profit is 12.7%. 1 st by assets loans liabilities equity 15

17 Ameriabank at a Glance Armenia Macro Indicators Armenian Banking Sector Indicators Balance Sheet Income Statement Ratios Annex 1: Statements and Peers 16

18 bln AMD bln AMD Assets, Liabilities and Equity Assets Structure of assets HIGHLIGHTS -6% -3% Loans to customers 70% Other assets 2% Cash and cash equivalent 16% Interbank loans and REPO 4% Securities 8% Slight decrease of assets and liabilities mainly due to seasonality. Diversified balance-sheet structure with 82% interest earning assets to total assets and 66% customer funds to total liabilities. Liabilities and equity -6% -3% % 19% 608-7% -5% 577 TOTAL LIABILITIES EQUITY Time deposits 31% Structure of liabilities Loans from IFIs 24% Demand deposits 29% Loans from Governmant 1% Bonds 6% Subordinated debt 7% Deposits and balances from banks 2% AMD 660b assets AMD 83b equity 17

19 bln AMD Loan portfolio Loan portfolio Loan portfolio breakdown HIGHLIGHTS % -3.4% % 9% -11% 400-6% 377 Loans to corporates 67% Loans to individuals and SME 33% Slight decrease of Loan Portfolio mainly due to decrease of corporate loan portfolio caused by seasonality. Robust growth of retail and SME loans with increasing share in total loans. Corporate loans Retail loans Loan portfolio concentration 203% 298% 15.1% 15.6% 14.8% CBA Standard 3-1 CBA Standard % *CBA standard 3-1 The maximum risk on a single borrower shall not exceed 20 % of the total capital. **CBA standard 3-2 The maximum risk on large borrowers (exceeds 5% of the Total capital) shall not exceed 500% of the total capital. Hotel service 8% Mining/Meta llurgy 11% Finance and investment 11% Loan portfolio structure by sector Food and Agriculture, beverage forestry and 5% timber 6% Construction 7% Retail trade Power 5% generation 4% Wholesale trade 15% Real estate 3% Communicati on services 3% Manufacturin g 2% Transportatio n 2% Municipal authorities 0% Other 3% Loans to retail customers 15% The largest loan portfolio in Armenian banking sector, with 24% CAGR over the last 5 years. Maintaining exceptional sectorial diversification of loan portfolio, with balanced exposure to all industries. AMD 462b loans 18

20 bln AMD bln AMD Corporate loans and trade finance Corporate loans Currency structure of corporate loans HIGHLIGHTS % -6% % 333 2% 309 USD 84% EUR 9% AMD 7% The decrease of corporate loan portfolio mainly due to seasonality. Trade Finance portfolio was almost unchanged. The Bank has one of the largest portfolios of trade finance facilities in the market. -13% -7% Large loans SME loans ( Medium business) Trade finance Currency structure of trade finance -10% 1% USD 79% % % % 1% -47% 4-12% 4 Balance sheet LC Factoring Finance lease AMD 12% EUR 9% AMD 377b corporate loans AMD 13b trade finance 19

21 bln AMD bln AMD bln AMD Retail loans Retail loans Currency structure of retail loans HIGHLIGHTS 30% 9% % 17% % 0% % % 29.7 Mortgages Retail business loans Consumer loans USD 46% EUR 11% AMD 43% Retail loan portfolio continued its steady growth with 9% growth in 1Q2018. Due to huge investments in retail distribution channels (branches and remote banking) there s a strong potential of further growth of retail business. A new consumer finance product and a new score-based loan approval procedure have significantly increased loan disbursement capacities Retail business loans 24% 0% % -12% % 1% 25.9 Consumer loans 24% 17% 24% % 37.8 AMD 85b retail loans AMD 16.8b SME loans SME loans ( Small and Micro) Investment loans AMD 29.7b mortgage loans 20

22 Loan portfolio quality NPL (PAR 90+) Coverage ratio (PAR 90+) HIGHLIGHTS 2.9% 2.9% 3.3% 60% 81% 104% NPL ratio (PAR90) slightly increased reaching the level of 3.3%. Coverage ratio is above 100%, entirely covering NPL portfolio. Cost of credit risk declined by 0.5 pp to 0.7% as a result of tight risk control. 1Q2018 provisioning is based on IFRS9. Cost of credit risk 1.5% 1.2% 0.7% * Quarterly Cost of credit risk is annualized 3.3% NPL (PAR 90+) 0.7% Cost of credit risk 104% Coverage ratio (PAR 90+) 21

23 bln AMD bln AMD bln AMD Deposits and Bonds Deposit & bonds -15% -8% % % % 2% Demand deposits Time deposits Bonds in local market Currency structure of deposits USD 61% EUR 11% Other 3% AMD 25% HIGHLIGHTS Despite steady and continuous reduction of interest rates Retail deposits and bonds increased by 3%. Corporate deposits decreased mainly due to seasonality and withdrawal of a few large shortterm deposits. The Bank is leading the local corporate bond market with USD 68.2M outstanding bonds and 30% market share. Corporate deposits & bonds Retail deposits & bonds -40% -21% % -51% % 1% Demand deposits Time deposits Bonds in local market 29% 3% % 135 1% % 4% Demand deposits Time deposits Bonds in local market AMD 373b total deposits and bonds AMD 145b corporate deposits and bonds AMD 225b retail deposits and bonds 22

24 bln AMD bln AMD bln AMD IFI/DFI and Government loans, Sub-debts and Equity Attracted funds Sub-debts HIGHLIGHTS 4% 11% % -3% In Q Asian Development Bank (ADB) became a shareholder of the Bank with USD 30M equity investment. It was ADB s first equity deal in Armenia % -8% The largest Armenian bank by equity. 5% 12% Loans from IFIs Loans from Governmant Equity Share capital ( bln AMD) 9% 19% AMERIA GROUP (CY) LIMITED 56.6% ESPS HOLDING LIMITED 11.6% EBRD 17.8% ADB 14.0% AMD 147b attracted funds AMD 40b sub-debt AMD 83b equity 23

25 Ameriabank at a Glance Armenia Macro Indicators Armenian Banking Sector Indicators Balance Sheet Income Statement Ratios Annex 1: Statements and Peers 24

26 bln AMD Interest income Interest income HIGHLIGHTS % % 28% -23% 24% 40% Bank s Net Interest Income registered 40% yoy growth. As a result of decrease of cost of funding and increase of assetliability spread NIM registered 0.8pp increase reaching the level of 4.3% Interest income Interest expense Net interest income 1Q2016 1Q2017 1Q2018 Interest income structure Interest expense structure NIM (Net Interest Margin) Loans and advances to customers 88% Securities 9% Money market 2% Other 1% Due to custom ers 54% Due to CBA/ba nks 5% Other 2% Due to IFI 39% 3.5% 3.5% 4.3% 4.3% NIM AMD 5.9b net interest income 25

27 bln AMD Non interest income Non interest income HIGHLIGHTS % % 31% 22% 43% 13% Net non interest income increased by 13% yoy. 80% of Non interest income is attributed to core business activities (Commissions, FX income, derivatives, etc.). Non interest income Non interest expense Net non interest income 1Q2016 1Q2017 1Q2018 Fee and commission income 46% Non Interest Income structure Other 11% FX income 34% Fines and penalties 7% Derivatives 2% Net fee and commission income structure Credit card maintenance 40% Account service 26% Money transfers 26% Guarantee and LCs 8% AMD 1.5b net non interest income 26

28 bln AMD bln AMD bln AMD Admin expenses and net profit Admin expenses 24% 36% Q2016 1Q2017 1Q2018 Personnel expenses and Trainings 57% Structure of admin expenses Rent 19% Depreciation 7% Other 9% Marketing, Rep. costs and CSR 4% Maintenance, communication and utility cost 4% HIGHLIGHTS Net profit recorded double digit yoy growth of 56% reaching the level of AMD 2.6 B. The increase of Admin costs is mainly due to the variable component of staff cost accruals and the costs associated with new branches and the new head office. Profit & loss Net profit Net profit margin EBT margin 49% 40% 38% 56% OP CB OP RB OP TD OP IB Other Total OP HR Mark & Admin Dep & PR exp amor EBT Taxes NET PROFIT Q2016 1Q2017 1Q2018 AMD 2.6b net profit 27

29 Ameriabank at a Glance Armenia Macro Indicators Armenian Banking Sector Indicators Balance Sheet Income statement Ratios Annex 1: Statements and Peers 28

30 Ratios ROA (Return on Assets ) ROE (Return on Equity ) HIGHLIGHTS 1.1% 1.1% 1.5% 10.2% 11.4% 13.4% Significantly higher profitability with 2pp Increase of ROE and 0.4pp increase of ROA as a result of better asset structure and liquidity management. CIR (Cost to Income ratio ) ROTE (Return on Tangible Equity ) Slightly higher CIR mainly due to increased costs associated with opening 3 new branches including a flagship branch and move to the new head office. 44.2% 41.7% 40.1% 10.4% 11.7% 13.7% LCR (Liquidity Coverage Ratio) 145.1% 147.4% 139.8% NSFR (Net Stable Funding Ratio) 143.2% 153.9% 126.7% * Denominator comprises liabilities to customer, borrowings from IFIs, Government and Subordinated debts. 1.5% ROA 13.4% ROE 44.2% CIR 29

31 Ameriabank at a Glance Armenia Macro Indicators Armenian Banking Sector Indicators Balance Sheet Income statement Ratios Annex 1: Statements and Peers 30

32 Balance sheet ITEMS 1Q thous AMD Cash and cash equivalents 107,378, ,149,043 Financial instruments at fair value through profit or loss 3,035,395 3,968,064 Available-for-sale financial assets 7,073,756 9,888,078 Money market short-term disbursements 28,994,826 19,518,284 Loans and advances to customers 458,875, ,640,980 Held-to-maturity investments 39,955,590 43,305,844 Property, equipment and intangible assets 8,694,624 7,126,916 Other assets 6,024,118 6,124,888 Total assets 660,032, ,722,097 Financial liabilities at fair value through profit or loss 19, ,306 Liabilities to banks 44,182,219 42,882,747 Current accounts and deposits from customers 340,139, ,170,779 Other borrowed funds 102,338, ,371,041 Sub-debt 39,754,188 40,919,768 Other liabilities 50,460,237 46,789,585 Total liabilities 576,894, ,820,226 Share capital and premium 54,269,204 39,842,539 Revaluation Reserve 348, ,214 Retained earnings 28,520,191 29,721,118 Equity 83,137,892 69,901,871 31

33 Profit & loss ITEMS 1Q2018 1Q2017 thous AMD Net interest income 5,903,647 4,230,209 Net fee and commission income 807, ,831 Net profit/loss from trading operations 945, ,601 Other operating income (expenses) (246,643) (130,526) Operating income 7,409,733 5,563,115 Impairment losses (975,096) (1,020,882) Personnel expenses (1,852,617) (1,476,003) Total administrative expenses (1,423,645) (929,331) Profit/ (loss) before tax 3,158,375 2,136,899 Profit tax (594,882) (492,239) Net profit/ (loss) 2,563,493 1,644,660 32

34 CBA prudential standards ITEMS CBA requirement Violations Minimum statutory fund 32,087,360 32,087,360 37,300,480 50,000 No violation Minimum total capital 81,922,300 84,123,389 91,480,108 5,000,000 No violation S12_Total capital to risk weighted assets 15.9% 12.7% 14.0% 12% No violation S21_High liquid assets/ Total assets 31.2% 29.7% 26.2% 15% No violation S211_High liquid assets of first group of currency / Total assets of first group of currency _ 20.5% 16.2% 9.2% 4% No violation S22_High liquid assets/ Demand liabilities 133.2% 93.4% 108.6% 60% No violation S221_ High liquid assets of first group of currency/ Demand liabilities of first group of currency 75.6% 46.5% 37.4% 10% No violation S31_Maximum risk on a single borrower 15.1% 15.6% 14.8% 20% No violation S32_Maximum risk on large-scale borrowers 203.2% 297.6% 270.9% 500% No violation S41_Maximum risk on bank related person 3.2% 3.2% 2.9% 5% No violation S42_Maximum risk on all bank related persons 10.8% 9.4% 7.7% 20% No violation Minimum requirement for obligatory reserves allocated with RA CBA: 2% AMD X X X 20% Currency No violation Maximum risk of currency position/ total capital of the bank 0.4% 0.2% 0.0% 10% No violation Maximum risk of separate currency positions/ total capital of the bank: USD EUR RUB other X X 0.0% 7% No violation 33

35 Assets BANK 1Q POSITION SHARE AMOUNT POSITION SHARE AMOUNT CHANGE mln AMD Ameriabank % 660, % 677, % ABB % 609, % 547, % Ardshin % 557, % 568, % ACBA 4 7.2% 319, % 310, % Inecobank 5 6.2% 273, % 277, % Converse Bank 6 5.7% 251, % 252, % VTB-Armenia Bank 7 4.9% 218, % 215, % HSBC 8 4.8% 213, % 208, % Ararat Bank 9 4.8% 211, % 212, % Armeconom % 195, % 190, % Unibank % 194, % 202, % Armswiss % 187, % 161, % Artsakh Bank % 140, % 136, % Anelik Bank % 134, % 128, % Evoca Bank % 105, % 105, % Byblos Bank Armenia % 88, % 85, % Mellat Bank % 53, % 46, % Total 4,416,179 4,328, % 34

36 Loans to customers mln AMD BANK 1Q POSITION SHARE AMOUNT POSITION SHARE AMOUNT CHANGE Ameriabank % 458, % 479, % Ardshin % 405, % 392, % ABB % 391, % 382, % ACBA 4 7.4% 198, % 190, % Inecobank 5 6.6% 177, % 173, % Converse Bank 6 5.8% 155, % 165, % VTB-Armenia Bank 7 4.9% 132, % 139, % Unibank 8 4.9% 130, % 135, % Armeconom 9 4.4% 118, % 104, % Ararat Bank % 117, % 119, % HSBC % 92, % 95, % Anelik Bank % 74, % 57, % Artsakh Bank % 71, % 71, % Armswiss % 66, % 61, % Evoca Bank % 60, % 56, % Byblos Bank Armenia % 32, % 28, % Mellat Bank % 6, % 5, % Total 2,690,903 2,658, % *Net loans ( loans, lease and factoring) 35

37 Liabilities mln AMD BANK 1Q POSITION SHARE AMOUNT POSITION SHARE AMOUNT CHANGE Ameriabank % 576, % 607, % ABB % 569, % 510, % Ardshin % 491, % 501, % ACBA 4 6.9% 256, % 250, % Inecobank 5 6.0% 222, % 229, % Converse Bank 6 5.8% 215, % 216, % VTB-Armenia Bank 7 4.9% 179, % 175, % Ararat Bank 8 4.7% 175, % 177, % HSBC 9 4.7% 173, % 169, % Armeconom % 166, % 161, % Unibank % 162, % 167, % Armswiss % 146, % 125, % Artsakh Bank % 108, % 106, % Anelik Bank % 86, % 84, % Evoca Bank % 76, % 75, % Byblos Bank Armenia % 64, % 61, % Mellat Bank % 19, % 11, % Total 3,690,252 3,634, % 36

38 Customer deposits mln AMD BANK 1Q POSITION SHARE AMOUNT POSITION SHARE AMOUNT CHANGE ABB % 443, % 398, % Ameriabank % 340, % 375, % Ardshin % 330, % 344, % ACBA 4 6.8% 175, % 166, % Converse Bank 5 6.8% 175, % 173, % HSBC 6 6.4% 163, % 158, % VTB-Armenia Bank 7 6.1% 157, % 158, % Inecobank 8 5.4% 138, % 140, % Unibank 9 5.3% 135, % 128, % Artsakh Bank % 91, % 90, % Armeconom % 88, % 91, % Ararat Bank % 81, % 95, % Armswiss % 79, % 65, % Anelik Bank % 65, % 64, % Evoca Bank % 48, % 49, % Byblos Bank Armenia % 47, % 45, % Mellat Bank % 4, % 4, % Total 2,567,741 2,553, % 37

39 Equity BANK 1Q POSITION SHARE AMOUNT POSITION SHARE AMOUNT CHANGE mln AMD Ameriabank % 83, % 69, % Ardshin 2 9.2% 66, % 66, % ACBA 3 8.8% 63, % 60, % Inecobank 4 6.9% 50, % 48, % Anelik Bank 5 6.5% 47, % 44, % Armswiss 6 5.7% 41, % 36, % ABB 7 5.5% 40, % 36, % HSBC 8 5.5% 39, % 38, % VTB-Armenia Bank 9 5.3% 38, % 39, % Converse Bank % 36, % 35, % Ararat Bank % 36, % 35, % Mellat Bank % 34, % 34, % Artsakh Bank % 32, % 29, % Unibank % 32, % 35, % Armeconom % 29, % 29, % Evoca Bank % 29, % 29, % Byblos Bank Armenia % 24, % 23, % Total 725, , % 38

40 Regulatory Capital mln AMD BANK 1Q POSITION SHARE AMOUNT POSITION SHARE AMOUNT CHANGE Ameriabank % 91, % 84, % Ardshin 2 8.7% 60, % 58, % ACBA 3 7.3% 50, % 51, % Anelik Bank 4 6.0% 41, % 43, % Inecobank 5 5.9% 40, % 39, % Armswiss 6 5.7% 39, % 40, % Artsakh Bank 7 5.4% 37, % 34, % VTB-Armenia Bank 8 5.3% 36, % 34, % Converse Bank 9 5.2% 36, % 36, % HSBC % 33, % 32, % Evoca Bank % 32, % 33, % Mellat Bank % 32, % 32, % Ararat Bank % 32, % 32, % ABB % 32, % 32, % Unibank % 31, % 31, % Armeconom % 31, % 32, % Byblos Bank Armenia % 30, % 32, % Total 689, , % 39

41 Net Profit BANK 1Q2018 1Q2017 POSITION SHARE AMOUNT POSITION SHARE AMOUNT CHANGE mln AMD Artsakh Bank % 2, (532) - Ameriabank % 2, % 1, % Ardshin % 2, % 1, % ACBA % 2, % 1, % Inecobank % 2, % 1, % Armswiss 6 8.1% 1, % 1, % Anelik Bank 7 7.6% 1, % 1, % Converse Bank 8 5.0% 1, % % Ararat Bank 9 4.5% % % HSBC % % 1, % ABB % % % Armeconom % % % Unibank % % % Prometey Bank % % % Mellat Bank % % % Byblos Bank Armenia % % % VTB-Armenia Bank % (606) - Total 20,130 10, % Profitable banks 1Q ,130 12, % 40

42 Return on Assets BANK 1Q2018 1Q2017 POSITION ROA POSITION ROA Artsakh Bank 1 8.2% % Anelik Bank 2 4.7% 8 1.4% Armswiss 3 3.7% 1 3.1% Mellat Bank 4 3.1% 4 2.5% Inecobank 5 2.9% 3 2.8% ACBA 6 2.7% 5 2.0% Ararat Bank 7 1.7% % Evoca Bank 8 1.6% 7 1.5% Converse Bank 9 1.6% % Ardshin % % Ameriabank % 9 0.9% HSBC % 2 2.9% Armeconom % % Unibank % % Byblos Bank Armenia % 6 1.6% ABB % % VTB-Armenia Bank % % Total 1.8% 1.1% Profitable banks 1Q % 0.3% 41

43 Return on Equity BANK 1Q2018 1Q2017 POSITION ROE POSITION ROE Artsakh Bank % % Armswiss % % Inecobank % % ACBA % % Ameriabank % % Anelik Bank % 6 9.5% Ardshin % 7 7.5% Converse Bank % % Ararat Bank % % HSBC % % Armeconom % % ABB % 8 7.3% Evoca Bank % % Unibank % % Mellat Bank % % Byblos Bank Armenia % 9 5.0% VTB-Armenia Bank % % Total 11.3% 6.5% Profitable banks 1Q % 1.6% 42

44 Net Interest Margin BANK 1Q2018 1Q2017 POSITION NIM POSITION NIM VTB-Armenia Bank % 2 8.5% Mellat Bank 2 8.5% 1 9.3% ACBA 3 7.7% 3 8.0% Unibank 4 7.5% % Inecobank 5 7.3% 4 7.6% Anelik Bank 6 6.0% % Artsakh Bank 7 5.9% 8 5.4% Converse Bank 8 5.2% 7 5.5% HSBC 9 5.2% 5 6.3% Armeconom % 6 5.5% Armswiss % % Ameriabank % % Ararat Bank % % Evoca Bank % 9 5.0% Ardshin % % Byblos Bank Armenia % % ABB % % Total 4.9% 4.7% 43

45 Cost to Income Ratio BANK 1Q2018 1Q2017 POSITION CIR POSITION CIR Armswiss % % Mellat Bank % % Inecobank % % Unibank % % Anelik Bank % % Artsakh Bank % % Ardshin % % Ameriabank % % Converse Bank % % Evoca Bank % % VTB-Armenia Bank % % Byblos Bank Armenia % % ACBA % % ABB % % Ararat Bank % % Armeconom % % HSBC % % Total 45.9% 46.8% 44

46 Capital Adequacy Ratio BANK 1Q2018 1Q2017 POSITION CAR POSITION CAR Mellat Bank % % Artsakh Bank % % Anelik Bank % % Byblos Bank Armenia % % Evoca Bank % % HSBC % % ACBA % % Armswiss % % Armeconom % % Converse Bank % % VTB-Armenia Bank % % Unibank % % Ararat Bank % % Inecobank % % Ameriabank % % ABB % % Ardshin % % Total 18.6% 20.1% 45

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