Ameriabank explains slowdown in lending for SMEs by cyclic nature of economy
22.11.2018,
13:48
Arman Barseghyan, retail banking savories director at Ameriabank, speaking Thursday at the discussion “SME Development Obstacles and Ways to Overcome Them”, explained the slowdown in lending for SMEs by cyclic nature of economy.
YEREVAN, November 22. /ARKA/. Arman Barseghyan, retail banking savories director at Ameriabank, speaking Thursday at the discussion “SME Development Obstacles and Ways to Overcome Them”, explained the slowdown in lending for SMEs by cyclic nature of economy.
“Economy develops in cycles and demand for one or another kind of lending grows at any stage,” he said.
“In particular, lending for SMEs was rallying in 2016.”
Ameriabank’s SME loan portfolio amounted to AMD 86.9 billion in Jan-Sept 2018, which is more than in the beginning of the year by 10.5% and 15.5% more than the result of the same period a year before.
Ameriabank’s lending grew 7.3% in 2017 and 46.9% in 2016.
“Ameriabank’s SME loan portfolio grew 60% in 2017, while in 2017 and 2018 things changed again,” Barseghyan said. “This shows that the business sector has already satisfied its financial needs, and new businesses, unfortunately, appear not so quick.”
The banker said that the establishment of political stability in the country after the early parliamentary elections is believed to provide favorable environment to businesses for rallying in 2019.
“Lending for individuals, including mortgage lending, which accounts for unprecedented growth, is rallying now,” he said.
Ameriabank, a universal bank that provides the full package of corporate, investment and retail banking services, is one of the biggest and stable financial organizations in Armenia. It is the flagship bank in Armenia for all key indicators (assets, liabilities, loan portfolio, net profit and capital).
The bank has repeatedly received awards from Euromoney, Global Finance and The Banker.
Ameriabank’s assets have grown 4.8% since the beginning of this year to AMD 710.2 billion by late September, liabilities 2.47% to AMD 622.8 billion and capital 25% to AMD 87.4 billion.
Its profit for Jan-Sept 2018 amounted to AMD 8 billion showing a 49.8% year-on-year growth. -0---
“Economy develops in cycles and demand for one or another kind of lending grows at any stage,” he said.
“In particular, lending for SMEs was rallying in 2016.”
Ameriabank’s SME loan portfolio amounted to AMD 86.9 billion in Jan-Sept 2018, which is more than in the beginning of the year by 10.5% and 15.5% more than the result of the same period a year before.
Ameriabank’s lending grew 7.3% in 2017 and 46.9% in 2016.
“Ameriabank’s SME loan portfolio grew 60% in 2017, while in 2017 and 2018 things changed again,” Barseghyan said. “This shows that the business sector has already satisfied its financial needs, and new businesses, unfortunately, appear not so quick.”
The banker said that the establishment of political stability in the country after the early parliamentary elections is believed to provide favorable environment to businesses for rallying in 2019.
“Lending for individuals, including mortgage lending, which accounts for unprecedented growth, is rallying now,” he said.
Ameriabank, a universal bank that provides the full package of corporate, investment and retail banking services, is one of the biggest and stable financial organizations in Armenia. It is the flagship bank in Armenia for all key indicators (assets, liabilities, loan portfolio, net profit and capital).
The bank has repeatedly received awards from Euromoney, Global Finance and The Banker.
Ameriabank’s assets have grown 4.8% since the beginning of this year to AMD 710.2 billion by late September, liabilities 2.47% to AMD 622.8 billion and capital 25% to AMD 87.4 billion.
Its profit for Jan-Sept 2018 amounted to AMD 8 billion showing a 49.8% year-on-year growth. -0---
