Ardshinbank announces agreement to acquire HSBC Armenia

ArmInfo. Ardshinbank, the largest Armenian banking group, is today announcing it has reached a binding agreement with HSBC Europe B.V., a subsidiary of HSBC Holdings plc, to acquire its fully owned banking subsidiary in Armenia. 

As stated in Ardshinbank's press releasee, HSBC Armenia has a  well-established base of loyal clients across Armenia and specialises  in serving affluent retail customers and blue-chip Armenian  corporates. Historically orientated towards corporate customers, its  growth over the recent years has been driven by its wealth and  personal banking proposition.

The proposed acquisition of HSBC Armenia is a unique opportunity to  build upon Ardshinbank's operational and financial strengths. The  combination aims to add a high-quality customer franchise and a  highly experienced team of relationship managers and employees. As at  December 31, 2023, HSBC Armenia had total assets of c. AMD290bn,  customer loans of c.  AMD185bn and c. AMD200bn in customer deposits.

The transaction is subject to regulatory and anti-trust approvals and  is expected to close within the next 12 months. 

Artak Ananyan, Chairman of the Management Board of Ardshinbank,  commented: 

"We are delighted to announce today that we have reached agreement  with HSBC for the acquisition of its bank in Armenia. Subject to  receipt of all clearances, Ardshinbank looks forward to welcoming  HSBC Armenia customers onto our award-winning platform and to further  delivering on its strategy to accelerate growth and expand product  offering for clients. This transaction is about growth and we look  forward to welcoming HSBC Armenia employees to the Ardshinbank team.  Our intention is to ensure a smooth and fluid transition for all HSBC  Armenia customers who will continue to enjoy the benefits of local  support and personalised services and Ardshinbank's bespoke range of  products."

The report states that Latif & Company (L&C) is acting as exclusive  financial advisor to Ardshinbank and Latham & Watkins is acting as  legal advisor.

Ardshinbank is the leading Bank in Armenia with a diversified  universal banking offering including retail and commercial banking,  investment banking, and private & wealth solutions.  The Bank has  over 375,000 customers served by 1,700+ employees, a strong  omnichannel distribution platform with 65 branches, supported by a  comprehensive mobile and online banking platform. The bank possesses  the largest branch network in the country and maintains a  representative office in Paris, France.

Ardshinbank is the only private entity in Armenia with assigned  ratings from three international rating agencies, all at the level of  the sovereign, as follows: S&P Global Ratings (B+ (Positive)),  Moody's (Ba3 (Stable)) and Fitch (BB- (Stable)). The bank is also the  only non-sovereign entity from Armenia which has issued RegS /144A  public Eurobonds in international capital markets.  Ardshinbank is  committed to invest in the alternative energy sector, further  advancing the bank's journey towards green banking. The bank's  operational framework is anchored on social and environmental  responsibility, coupled with strong corporate governance.

According to the ArmInfo rating service, Ardshinbank's assets totaled  $4.04 at the end of 2023, taking a leading place in the Armenian  market by this criterion. The size of total credit investments and  other loans totaled $1.7 billion. The total capital of the bank was  $472.7 million (2nd place). Total liabilities totaled $3.6 billion  (1st place), of which $2.4 billion are liabilities to clients (1st  place). Ardshinbank completed 2023 with a net profit of $154.8  million.

According to the ArmInfo rating, the assets of HSBC Bank Armenia  totaled $719.7 million at the end of 2023  (12th place). Total loan  investments and other loans totaled  456.3 million dollars. The total  capital of the bank is $149.8 million. Total liabilities are $569.9  million, of which $504.9 million are liabilities to clients. HSBC  Bank Armenia completed 2023 with a net profit of $27.3 million, with  a y-o-y growth of 38%.