by Gayane Isahakyan
VTB Bank (Armenia) is going to increase the portfolio of personal loans by 15% to 115 bln AMD at the yearend 2014, Yuri Gusev, Director General, Chairman of Directorate of VTB Bank (Armenia), said at a press conference on May 21.
"This indicator will be increased due to all the products offered by the Bank. Now the Bank is providing a full range of banking products and can satisfy all the needs of our customers", said Gusev. He added that no new products will be introduced in 2014. The Bank's key task for 2014 is to enhance the convenience and efficiency of the available products, as well as their market competitiveness.
"Now we qualify the quality of our portfolio of retail loans as satisfactory. However, improvement of the portfolio quality is an endless process and we are constantly searching for new instruments, at the same time trying to avoid the damage that may be caused to the sales", said Gusev.
He stressed that VTB Bank (Armenia) succeeds in all segments of banking business and in some of them the Bank's share in the market is much higher than the average market indicator. For instance, the Bank's share in the market of POS lending is estimated at over 30%, which is significant amid the intensifying competition in this field.
"The competition in this market in Armenia is intensifying, because the banks have launched POS-lending. It is an interesting technological market that requires certain investments and knowledge. We feel confident in this market because we understand what we should do to withstand the competition and occupy a certain niche", Gusev said. He added that the corporate business yield is declining and it is impossible to be engaged in banking business and to adhere to the corporate bank model only.
Dmitry Rudenko, President-Chairman of the Board of Leto-Bank (part of VTB Group) , in turn, said the market of POS-loans continues to develop, and Armenia is not an exception. "In 2013, VTB Bank (Armenia) occupied leadership positions in the given market by the number of points of sale and by the loan portfolio. The bank plans to promote this product also in future. POS-lending is becoming more liberal to borrowers and POS-loans are easy to take," Rudenko said.
For his part, Vsevolod Smakov, Vice President of Bank VTB 24, Head of the Department for International Business, a member of VTB Bank Board, said the experience and strict observance of its strategy lets VTB Bank (Armenia) achieve its goals, develop and strengthen its positions in the banking market of Armenia.
"Over the last years, VTB Bank (Armenia) has achieved tangible progress in development of retail business. Bank VTB24 supervising development of its subsidiaries' retail business, highly appreciates the results of VTB Bank (Armenia) in that segment, development of the bank and growing confidence of customers and investors. I think the results of the strategy for the coming 3 years will exceed the previous ones," Smakov said.
VTB Bank Group representatives have arrived in Armenia to attend the concert by Russian folk rock group Pelageya organized by VTB Bank (Armenia) for its Private Banking customers. To recall, VTB Bank (Armenia) CJSC joined VTB Group in April 2004. Russian VTB Bank OJSC holds 100% stake in VTB Bank (Armenia). The bank has been among leaders in the banking system of Armenia in terms of a range of key figures. It serves 67 branches throughout the country (the biggest branch network in the country).