A remarkable year in the history of ARMECONOMBANK OJSC (interview with Saribek Sukiasyan, Chairman of the Board of ARMECONOMBANK OJSC)

-Mr. Sukiasyan, ARMECONOMBANK OJSC's annual meeting will take place on 23

June 2016, during which the Bank's activities of  2016 will be summarized. How would  you apprise  the previous year for  ARMECONOMBANK OJSC ?

-2016 was a relatively challenging year for us, but our efforts have not been unavailing. Furthermore, the previous year was one of the most remarkable years in the history of AEB.  You can judge yourself,  BTA bank consolidated with ARMECONOMBANK OJSC, the Bank brought its equity into compliance with the AMD 30.0 bn regulatory threshold effective from 1 January 2017 as announced by RA Central Bank. The Bank's total capital has increased by 6 times due to the shares emission and the merger with BTA Bank.  As you see, we can state, that 2016 was a fruitful year full of accomplishments and significant growth for ARMECONOMBANK OJSC.

-Hasn't the necessity of abrupt replenishment of the regulatory capital caused any difficulties?

-No, it has not. We were prepared for that replenishment and were steadily implementing the strategic plan developed by us. Also, I must state that parallel with the difficult and responsible process of the consolidation of  BTA Bank with ARMECONOMBANK OJSC,  the Bank recorded significant growth in the field of  loans provided to customers and  deposits attracted from customers, which is the main evidence of the continuous growth of customer confidence towards the Bank, which resulted the increase of the customers' number.

 All these achievements are the result of consistent implementation of development strategy and evidence of efficient and intense activities of the Bank's shareholders, the Board, the Executive Board, and all employees.

-What does the market look like today, and what is the competitive advantage of AEB?

-It is a common truth that Armenian commercial banks are  mainly experiencing liquidity problems  in current period. At the same time, the competition  has become very fierce in the market.Banks are fighting for a single client. As a result, the banks  that offer more affordable resources and are more flexible against  the current competitive conditions gain advantages over other banks. The success, indeed, will accompany the banks, that highlight the importance of the customers' role. Good bank needs good customers, and good customers - good bank. ARMECONOMBANK OJSC's achievements, I think, are conditioned by a  number of factors.

We are traditionally guided by the principles of Corporate Governance - the equality and protection of the rights of key and small shareholders, transparency of activities and the management of the company with the  participation of interested  entities.

Such kind of working behavior mainly attracts foreign institutional investors, who want to know how their investments are used. AEB,  in its turn, always seeks cooperation with international financial structures, as it allows the Bank to move forward progressively and to apply the international experience and knowledge  in our activities.

-Mr. Sukiasyan, will you be able to retain the tendency of tangible growth in this year too?

-I assure you that we can. Currently, AEB's regulatory capital amounts to approximately AMD 32 bn.. The income of the first quarter of 2017 has increased by 154% compared with the the same period of the previous year. Another two branches will be added to the 48 operating ones. I should mention with pleasure that based on the results of 2016 we are going to pay dividends. After all, one of  the most important objectives of a bank is to pay dividends. Shareholders expectations should be justified. It already 15 years now, that AEB's adopted policy of dividend payment has been a source of stable income for shareholders. This policy, indeed, has greatly contributed to the fact that currently the Bank has 3500 shareholders.

-Who are the current shareholders of the Bank apart from Sukiasyan family?

-The Bank, today, has numerous small shareholders.  As a result of  two distribution of shares of the last  two years, the number of  shareholders has increased by nearly 2000. We, Sukiasyan brothers,  possess the significant package of shares as before.   European Bank for Reconstruction and Development (EBRD) continues to retain its participation in the Bank's capital. Currently, negotiations are being conducted with several institutional investors to obtain significant participation in AEB'a capital.

-Mr. Sukiasyan, what do you think, how does the motivation affect the quality of the work, and which kind of motivation mechanisms are applied in AEB?

-The motivation of employees has always been the motive force of the work. It promotes the growth of productivity of the work and ensures the development of business. Generally, the motivation of the employees shall be one of the key elements of Human resources policy of each company. The employer shall fairly treat its employees,  motivate and encourage them.

Understanding the role of motivation as a an important factor of successful business development and maintenance, AEB constantly applies incentives  in the form of  salary review and rewords,  as well as  career advancement, business trips and education financing. 

-Mr. Sukiasyan, bankers have a reputation of superstitious people, as they deal with  finances, and money requires special attention and cautiousness. Do you consider yourself  a superstitious person?

-To say that am superstitious, probably would be wrong. For me there are no signs of  special meaning but I can not deny, that I am very cautious, which is maybe conditioned by long-term experience. In work I am guided by my knowledge, experience and sometimes by intuition.