Transcript Slide 1
AMERIABANK CJSC
2008 ANNUAL REPORT
Investor Presentation
March 2009
TABLE OF CONTENTS
HIGHLIGHTS
BANK BUSINESS OVERVIEW
ENVIRONMENT
TARGET MARKETS
ANALYSIS OF THE MARKET
QUANTITATIVE RESULTS
2
Highlights of
2008
3
HIGHLIGHTS (1 of 9)
Development Goals
Number 1 in Investment Banking
Leadership in Corporate Banking
Among Top 5 by assets
Full range of investment and corporate bank services
Becoming the most desirable Employer
Toughening the liquidity and credit risk management
practices to battle the global economic crisis
Continuing attempts to increase the capital /attracting
IFIs/
Increasing cost management efficiency
4
HIGHLIGHTS (2 of 9)
GOALS OF THE YEAR 2008
Development of new product range &
business processes
Professional staff recruitment
Bank structure optimization
Establishment of two branches, exploitation
of 20 ATMs
Relocation to a new building
5
HIGHLIGHTS (3 of 9)
GOALS FOR THE YEAR 2008(ctd.)
Switching to AS-bank 4.0
Introduction of Terrasoft - CRM
Promotion of a new brand of the Bank
Determination & attraction of target clients
Working on obtaining of ISO certificate
Participation in Visa systems & MasterCard
6
HIGHLIGHTS (4 of 9)
MAJOR ACHIEVEMENTS OF THE YEAR 2008
1st by Share Capital (AMD 18,2 bln, or USD 59,3 mln)
4th by Total Capital (AMD 20,3 bln, or USD 66,1 mln)
8th by Total Assets (AMD 49.1 bln, or USD 160,3 mln)
AmEx agent, VISA & MasterCard principal member
1st branch launching in Stepanakert
7
HIGHLIGHTS (5 of 9)
MAJOR ACHIEVEMENTS OF THE YEAR 2008 (ctd)
1st Bank-backed M&A transaction in Armenia
1st Bank to launch financial lease & 1st by volume and
number of leasing operations
1st Bank to pursue CRM in the Banking Industry of RA
3rd by public awareness indicator
70 internal business processes endorsed
92 procedures, policies, regulations & instructions
adopted
8
HIGHLIGHTS (6 of 9)
,
P&L and Profitability Ratios
2008*
2007*
thous. USD
thous. USD
Growth, Y-O-Y,
(times)
Net Interest Income
6,637
1,276
5
Net Non-Interest Income
2,210
866
3
Total Operating Income (Revenue)
8,846
2,142
4
Recurring Operating Costs
4,376
1,374
3
Net Income
2,511
529
5
1.50%
ROAA, Annualized
2.6%
ROAE, Annualized
6.9%
4.70%
*USD/AMD currency rate is calculated as of the last day of each period
** Growth numbers are rounded
9
HIGHLIGHTS (7 of 9)
,
Balance Sheet
Growth, Y-O-Y, (times)**
2008 (as of 31.12.2008)
2007 (as of 31.12.2007)
thous. USD
thous. USD
Net Loans
101,541
8,941
11
Total Assets
160,386
44,233
4
75,964
28,977
2.6
93,999
33,015
3
66,387
11,218
6
Total Deposits
Total Liabilities
Total Capital
*USD/AMD currency rate is calculated as of the last day of each period
** Growth numbers are rounded
10
HIGHLIGHTS (8 of 9)
Ameriabank-Efficiency Ratios
2008
2007
Operating Cost To Average Total Assets
15.8%
13.7%
Operating Cost To Total Cost
4.6%
4%
Cost/Income
88%
94%
7.6%
7.6%
Total Employee Compensation Expense To Cost
8.6%
9.1%
Total Employee Compensation Expense To Average Total
Assets
2.5%
2.4%
Total Assets Per One Employee (thous. USD)
917
766
Revenue per one employee (thous. USD)
180
185
ROAA
2.6%
1.50%
ROAE
6.9%
4.70%
Total Employee Compensation Expense To Revenue
11
* USD/AMD currency rate is calculated as of the last day of each period
HIGHLIGHTS (9 of 9)
Ameriabank - Liquidity Ratios
2008 (as of 31.12.2008)
2007 (as of 31.12.2007)
Net Loans To Total Assets
63%
20%
Average Interest Earning Assets To Average Total
Assets
95%
89%
20%
51%
Total Equity To Net Loans
65%
125%
Total Deposits to Total Liabilities
81%
90%
1.41
2.93
Liquid Assets To Total Assets
Leverage (times)
12
* USD/AMD currency rate is calculated as of the last day of each period
Ameriabank
Business
Overview
13
STRUCTURE OF THE
FUNCTIONAL UNITS (1 of 3)
14
STRUCTURE OF CORPORATE
GOVERNANCE (2 of 3)
Shareholders Annual General Meeting
Board Of
Directors
• Ruben Vardanian - Chairman of the Board
• Gor Nahapetyan - Board Member
• Aram Grigorian - Board Member
• Anushavan Arzumanian – Board Member
• Andrew Mkrtchyan – Board Member
• Artak Hanesyan – Chairman of the
Management Board (MB)
Management
Board
• Vazrik Sekoyan- MB Member (Retail Banking)
• Tigran Jrbashyan- MB Member (Development)
• Andrei Shinkevich- MB Member (IB)
• Sergey Shevchenko- MB Member (Trading)
• Gohar Khachatryan - Chief Accountant
15
OWNERSHIP STRUCTURE (3 of 3)
TDA HOLDINGS
LIMITED
99.7% of the Bank’s
share capital
+
=
100% of Ameriabank CJSC Share Capital
Ministry of Finance
and other Minority
Shareholders
0.3%
16
Economic
&
Financial
Environment in
Armenia
17
ENVIRONMENT (1 of 4)
,
1. Macroeconomic environment
2004
2005
2006
2007
2008*
GDP (bn USD )1,2
Real GDP Growth (%)
3.6
10.5
4.9
14.0
6.4
13.3
9.2
13.8
11.9
6.8*
Unemployment rate (cumulative,%)
Average monthly salary (USD)1,2
n/a
n/a
n/a
n/a
7,6
177
7,1
255
6,3
300
Consumer Price Inflation (avg %)
7.0
0.6
2.9
4.4
9.0**
CPI index (cumulative)
n/a
n/a
102,9
104,4
109,0
738.3
1,004.9
1,025.5
1,196.6
1,123.8
1,196.3
1,592.8
1,921.3
2,796.9
3,782.2
Current Account Balance (mln) 1
-19.6
-51.7
-117.1
-589.6
-1,564.6
Exchange rate AMD/USD (avg.)
533.5
457.7
416.0
342.1
306.0**
Export (FOB, mln) 1, 2
Import (CIF,mln) 1, 2
2006 (%)
2007 (%)
2008 (%)
Net Foreign Assets ***
70,7
35,1
(24,4)
Net Internal Assets ***
(33,8)
58,1
3,9
Money Base (M2X) ***
41,1
50,9
2,9
Interest rate on CB loans (for the end of the period)
17,2
16,5
16,5
5
5,7
8,5
6,5
7,5
9,6
Interbank loans’ interest rate (for the end of the period)
Profitability of Governmental bonds
1
Cumulative growth
Exchange rate calculated as an average AMD/USD rate for the period
*actual ** The Economist Intelligence Unit (EIU) estimates *** Percentage change against the previous period (end of the period)
Source: Central Bank of Armenia: www.cba.am, Economist Intelligence Unit: www.eiu.com
2
18
ENVIRONMENT (2 of 4)
2.
2008 Global Indexes (Armenia)
Doing Business 2009 & 2008 reports for the Economy of Armenia by the World Bank
Ease of
Doing
Business
Rank
Starting a
Business
Employing
Workers
(April 2007
to June
2008)
44
66
54
5
28
88
150
143
61
47
2008
41
49
52
2
25
84
147
131
63
47
Year
Registering
Property
Getting
Credit
Protecting
Investors
Paying
Taxes
Trading
Across
Borders
Enforcing
Contracts
Closing a
Business
2009
2009 Index of Economic Freedom World Rankings by The Heritage Foundation
World Rank
Country
Economic Freedom Score
Change from Previous
#31
Armenia
69.9
0
World Economic Forum 2008
Global Competitiveness Index (GCI) rankings and 2007-2008 comparisons
Country/Economy
Armenia
GCI 2008-2009 rank
GCI 2008-2009 score
97
3.73
Moody’s Country Rating
19
The fundamental credit outlook for 2008 for Armenian financial institutions by Moody’s is negative. Moody’ s rates the government of
Armenia Ba2 for local and foreign currency debt obligations.
ENVIRONMENT (3 of 4)
3. Monetary policy and estimates for 2009
2008 indicators (actual)
Slowing of inflation (av. 9,0%) and weakening of economic growth (6,8%)
Cutting refinancing rate by a cumulative 75 basis points in December
2008 and January 2009, to 7%
National currency to USD rate fluctuated within 300-309 drams
2009 estimates
Protracted economic crisis: volatile market environment & corporate
defaults
Refinancing rate in 2009 within 6.5% - 8%
Inflation rate within 8-10% according to RA government
AMD/USD rate within 360-380 drams as per announcements of CBA
GDP is expected to grow
by 9.2% according to RA Government
by 7-8% according to CBA
by 1.1-1.5% according to EIU, IMF and World Bank predictions
20
ENVIRONMENT (4 of 4)
4. Macroeconomic trends and forecasts by EIU
2007*
2008**
2009***
2010***
USD
USD
USD
USD
13.8
6.8*
1.1
3.0
10.2**
1.3
2.0
3.0
Consumer Price inflation (avg %)
4.4
9.0*
3.6
4.6
Short-term interbank rate
17.5
17.1*
16.5
16.7
Export (FOB, mln)
Import (CIF,mln)
1,196.6
2,796.9
1,123.8
3,782.2
976.6
3,172.7
1,045.1
3,345.1
Current Account Balance (mln)
(589.6)
(1,564.6)
(1,672.2)
(1,653.7)
Exchange rate Dram:USD (avg.)
342.1
306.0*
322.9
347.8
Exchange rate Dram:Rb (avg.)
13.4
12.3*
9.4
9.9
Real GDP Growth (%) ****
Gross agricultural production growth
Consumer price inflation (av, %)
Gross Domestic product (% change, Y-oY)
16
14
12
10
Armenia
8
CIS
6
4
2
0
-2 2004 2005 2006 2007 2008
* Actual
**Economist Intelligence Unite (EIU) estimates
*** The Economist Intelligence Unit forecasts
**** RA Government forecasts 9,2% GDP growth. CBA forecasts 7-8% growth for 2009
Source: Economist Intelligence Unit: www.eiu.com
2009
2010
18
16
14
12
10
8
6
4
2
0
Armenia
CIS
2004 2005 2006 2007 2008 2009 2010
21
Target Markets
22
TARGET MARKETS (1 of 4)
1.
Priority sectors
1.1 Industry*
GDP by
Industry
Real % change**
2007
Real % change**
2008
Contribution to growth***
2007
Contribution to growth***
2008
3.1
2.4
0.5
0.4
Quick growth branches in 2008: energy, mining, food
industry, construction materials
Loan portfolio concentration during 2008 in this sector
was almost 32% (avg.)
* Source: National Statistical Service of RA
** Year on year
*** Percentage points
23
TARGET MARKETS(2 of 4)
1. Priority sectors
1.2 Construction*
GDP by
Construction
Real % change**
2007
Real % change**
2008
Contribution to growth***
2007
Contribution to growth***
2008
18.6
7.2
4.4
1.8
Quick growth branches: constructions in hospitality/catering and in the
processing industry
Slowdown trend in the real estate price growth
Extremely tightened mortgage terms or absence of mortgage issuance
Loan portfolio concentration during 2008 in this sector was almost
18.4% (avg.****)
* Source: National Statistical Service of RA
** Year on year
*** Percentage points
**** The concentration percentage includes mortgage loans as well.
24
TARGET MARKETS (3 of 4)
1. Priority sectors
1.3 Services*
GDP by
Services
Real % change**
2007
Real % change**
2008
Contribution to growth***
2007
Contribution to growth***
2008
26.9
16.7
1.6
1.0
Quick growth branches: transport, tourism & hospitality,
telecommunications, finance
Alignment towards domestic demand
Dependency оn solvency of general population (remittances)
Banks have tightened consumer lending terms
Loan portfolio concentration during 2008 in this sector was 12% (avg.)
* Source: National Statistical Service of RA
** Year on year
*** Percentage points
25
TARGET MARKETS (4 of 4)
3.
Sector concentration of the annual total loans issued by the Bank
Concentration of loans by RA economic sectors
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Public nutrition and other services
Trade
Transport
Construction
Agriculture
Industry
26
Analysis of the
Banking Market
27
ANALYSIS OF THE MARKET (1 of 6)
Bank’s positioning / ranking against benchmarks Top 10 Banks by CAPITAL in 2008*
Thous. USD
2008 (as of 31.12.2008)
2007 (as of 31.12.2007)
Growth Y-O-Y
ACBA
84,980
69,307
22.6%
Ardshininvestbank
84,447
60,463
39.7%
VTB Bank Armenia
77,757
67,506
15.2%
Ameriabank
(4th by total capital)
66,387
27,644
1.08 times
HSBC
50,564
34,641
46.0%
Converse bank
42,820
35,721
19.9%
Areximbank
32,363
11,513
2.8 times
Unibank
30,844
22,853
35.0%
Prometey Bank
29,351
26,609
10.3%
Armeconombank
28,451
27,644
2.9%
* Table contains data published by Banks per CBA requirement
28
ANALYSIS OF THE MARKET (2 of 6)
Bank’s positioning / ranking Top 10 Banks By ASSETS
in 2008*
Thous. USD
2008 (as of 31.12.2008)
2007 (as of 31.12.2007)
Growth Y-O-Y
ACBA
403,612
261,815
54.2%
HSBC
397,153
340,564
16.6%
Ardshininvestbank
371,120
305,891
21.3%
VTB Bank Armenia
323,544
228,527
41.6%
Converse Bank
234,286
191,532
22.3%
Unibank
224,169
148,671
50.8%
Armeconombank
164,020
164,408
-0.2%
(8th by assets)
160,386
44,233
3.6 times
Inecobank
143,680
116,677
23.1%
ABB
140,695
108,119
30.1%
Ameriabank
* Table contains data published by Banks per CBA requirement
29
ANALYSIS OF THE MARKET (3 of 6)
Bank’s positioning / ranking Top 10 Banks By LIABILITIES in 2008*
Thous. AMD
2008 (as of 31.12.2008)
2007 (as of 31.12.2007)
Growth Y-O-Y
HSBC
346,590
305,923
13.3%
ACBA
318,632
192,508
65.5%
Ardshininvestbank
286,672
245,428
16.8%
VTB Bank Armenia
245,787
161,021
52.6%
Unibank
193,325
125,818
53.7%
Converse Bank
191,466
155,810
22.9%
Armeconombank
135,569
136,764
-0.9%
ABB
118,081
88,256
33.8%
Inecobank
117,174
94,549
23.9%
Anelik Bank
99,613
87,057
14.4%
Ameriabank (11 th by liabilities)
93,999
33,015
2.8 times
* Table contains data published by Banks per CBA requirement
30
ANALYSIS OF THE MARKET (4 of 6)
Bank’s positioning / ranking Top 10 Banks By DEPOSITS*
Q4 2008
Q4 2007
Thous. USD
Growth Y-O-Y
HSBC
270,131
252,536
7.0%
Ardshininvestbank
228,187
191,329
19.3%
Unibank
155,541
116,066
34.0%
Converse Bank
142,119
127,614
11.4%
VTB Bank Armenia
88,949
88,182
0.9%
ACBA
88,086
70,338
25.2%
Artsakhbank
76,304
32,388
2.3 times
ABB
74,608
56,011
33.2%
Armeconombank
65,198
67,823
-3.9%
75,964
28,977
2.6 times
Ameriabank
(10th by deposits)
* Table contains data published by Banks per CBA requirement
31
ANALYSIS OF THE MARKET (5 of 6)
Bank’s positioning / ranking against benchmarks*
Thous. USD
2008
Market Share of Top 5 banks by
capital
Market Share of
Ameriabank
Net loans
2,045,938
52.3%
5.0%
Total assets
3,381,349
49.0%
4.7%
47.3%
4.8%
2,601,172
49.7%
3.6%
Share capital
469,363
40.4%
12.6%
Total capital
777,207
46.9%
8.5%
Net income
90,714
64.3%
2.8%
Total deposits
Total liabilities
1,587,545
32
* Table contains data published by Banks per CBA requirement
ANALYSIS OF THE MARKET (6 of 6)
Bank’s positioning / ranking against benchmarks Corporate & Retail Banking*
Thous. USD
Ameriabank
ASHIB
HSBC
Converse
Armeconom
(position in the
market)
ACBA
thous. USD
Net loans
236,958
234,043
139,726
88,472
101,541 (7)
270,211
Investments
15,754
31,100
22,200
14,903
9,526 (9)
7,876
Total assets
371,120
397,153
234,286
164,020
160,386 (8)
403,612
Total deposits
228,187
270,131
142,119
65,198
75,964
(10)
88,086
Total liabilities
286,672
346,590
191,466
135,569
93,999 (11)
318,632
Share capital
44,999
7,947
4,020
7,607
59,336 (1)
32,602
Total capital
84,447
50,564
42,820
28,451
66,387 (4)
84,980
Net income
19,113
12,760
6,697
1,670
2,511 (10)
14,502
ROA
5.15%
3.21%
2.86%
1.02%
1.57%
3.59%
ROE
22.63%
25.24%
15.64%
5.87%
3.78%
17.06%
Leverage
3 times
7 times
4 times
5 times
1 times
4 times
765
1654
833
659
1096 (6)
331307
Average salary
(USD)
* Table contains data published by Banks per CBA requirement
Quantitative
Results (2008)
34
QUANTITATIVE RESULTS (1 of 8)
Revenue Analysis of the Bank (2008)
Tous.USD
Composition of Revenue
Net foreign currency
related income
1,437 thous. USD
16%
Other income
105 thous. USD
1%
(+18% y-o-y)
(+199% y-o-y)
Net fee and commission
income
659 thous. USD
8%
(+118% y-o-y)
Net interest income
6,637 thous. USD
75%
(+424% y-o-y)
35
QUANTITATIVE RESULTS (2 of 8)
Analysis of the Bank’s Revenue
thous. USD
thous. USD
Revenue Growth
Net Fee and Commission Income
800
312%
310%
10,000
8,000
8,846
Net noninterest
income
Net interest
income
2,209
6,000
4,000
2,000
0
6,637
2,142
30
667
600
500
400
308
300
200
860
1,282
100
-
31.12.2007
thous. USD
+117 %
700
31.12.2008
31.12.2007
Net Securiries Related Income
25
thous. USD
+260 %
Net Foreign Currency Related Income
+112%
1,200
20
1,000
15
800
26
600
10
31.12.2008
1,102
518
400
5
0
200
-
0
31.12.2007
31.12.2008
* USD/AMD currency rate is calculated as of the last day of each period
31.12.2007
31.12.2008
36
QUANTITATIVE RESULTS(3 of 8)
Operational costs of the Bank (2008)
Tous.USD
Operating cost structure
Licensing and
technologies
75 thous. USD
2%
+100% y-oy
Other expenses
498 thous. USD
11% +105% y-oy
Administration expenses
178 thous. USD
+123 %4%
y-oy
Audit and consulting
375 thous. USD
9%
Personnel costs
2,330 thous. USD
53%
+188% y-oy
+841 % y-oy
Advertisement costs
559 thous. USD
13%
+2,127 % y-oy
Depreciation, amortizatio
n
369 thous. USD
8%
37
QUANTITATIVE RESULTS (4 of 8)
Analysis of operational expenses of the Bank
Staff Number Dynamics
Cost to Income Ratio
200
100%
202%
94%
150
88%
100
175
50
58
80%
2007
0
2008
2007 (31.12.2007)
Ameriabank
2008 (31.12.2008)
Ameriabank
38
6. QUANTITATIVE
RESULTS (5 of 19)
Profitability*
Tous.USD
Net Income Dynamics
3800
3300
2800
2300
1800
1300
2,511
800
300
-200
525
2007
2008
Ameriabank
39
* USD/AMD currency rate is calculated as of the last day of the period
QUANTITATIVE RESULTS (6 of 8)
Profitability of the Bank
40
QUANTITATIVE RESULTS (8 of 8)
Ameriabank – Main Economic Normatives
Item
Minimum statutory fund of the bank
Minimum total capital of the bank
N1 Total capital/ Risk weighted assets
Actual
(Thous. AMD)
CBA
requirement
(Thous.
AMD)
No violation
18,200,000
50,000
20,296,982
2,400,000
65.33%
12%
N2.1 High liquid assets/ Total assets
Maximum risk on large-scale borrowers
Maximum risk on bank- related person
Maximum risk on all bank- related persons
No violation
No violation
No violation
20.08%
15%
107.83%
60%
N2.2 High liquid assets/ Demand liabilities
Maximum risk on a single borrower
Number of violations during quarter
No violation
No violation
15.69%
20%
No violation
85.04%
500%
0.26%
5%
No violation
No violation
2.32%
20%
41
For further information, please contact:
Head of Investor Relations Department
Ms. Lusine Vardanyan
E-mail: [email protected]
Tel: + 37410 561111
42