Armenia’s IDBank achieves record highs, profit up by 65%, loan portfolio—by 15%
IDBank of Armenia has summed up the results of its first half-year indicators, according to which a more than AMD 2.5bn net profit was recorded, and the loan portfolio grew by 15%. Armenian News-NEWS.am spoke with Ruben Melikyan, Acting Chairman of the Management Board, Financial Director of IDBank, about the latter’s future development plans.


-In late May 2018, AnelikBank CJSC announced about rebranding, and it was renamed IDBank. By doing so, did the Bank revise its work philosophy, vision, and values? What is the reason for changing the strategy of the Bank? And what emphases will it have in future?

-The name of the Bank and the selection of the new brand was not a coincidence. The Bank has a new shareholder and a new working style. We started the rebranding process in 2017, during which we have already implemented a program of large number of sweeping internal and external changes, and which had an absolutely positive impact on the improvement of internal work and quality of client service of the Bank. The Previously Anelik, the currently IDBank is one of the first banks that were registered in Armenia. The long years of work track-record, the study of client requirements and international banking trends also brought about the work philosophy, vision change of the Bank. It is important for us to maintain—and in some cases, to gain—client trust; the new brand, new strategy of the Bank will serve this objective. Furthermore, by way of showing an individual approach to our clients, we will offer new and modern solutions, products. We strive to become a leading bank in the financial system of the Republic of Armenia, by providing modern digital solutions—with an individual approach—to clients.

-In late 2017, IDBank recorded a positive dynamics of key indicators. In particular, the Bank’s net profit grew by 65%, on an annual basis. What are the results of the first half-year for 2018? And what impact did rebranding have on the activities of the Bank and its financial results?

-The Bank truly has great financial and non-financial achievements, which of course are a result also of rebranding and a change in policy. The profit for 2017 increased by about 65%, as compared with 2016, and a more than AMD 2.5bn net profit was recorded already in the first-half year of 2018. The noted indicators are a record for the Bank—both for 2017 and the first-half year of 2018, though the Bank has already recorded high rates of profit and profitability growth over the last four years. Also, a loan portfolio growth by 15% was recorded in the first half of 2018, and, simultaneously, the high indicator of the Bank’s capital adequacy was maintained, and which bespeaks the right and sound policy invested and the stability of the Bank.

-Will the strategy for engagement of the Bank’s clients change simultaneous to rebranding?

-We have adopted a new direction, and we wish to create an environment that differs, is client-friendly. We take into account all the needs and preferences of our clients. Digital transformation of banking system is not just a matter of the individual’s desire, but a de facto already formed reality. The contemporary clients of banking services themselves dictate the demand for these changes. Of course, we focus on offering quality, distance, speedy, and convenient services to our clients—[and] based on new technological solutions. We pay great attention to this direction, but we do not focus on that sector alone. The range of the IDBank’s services will be very extensive. We have done a number of studies to find out the needs of our current clients, and the preferences of a new target group.

-What solutions does the bank plan to introduce—taking into account the tough competition conditions in the banking sector?

-I consider competition to be the driving force of progress. We, of course, follow all the news and offers of the financial system; moreover, not only local, but also international. We draw conclusions and develop new ways of development—considering those factors as well. We are even happy that more and more organizations are working in this sector and gradually changing clients’ perception toward the ways for service from a distance; it is a very good trend for the development of our country. We are convinced that in the long run, only the organizations that offer best client-service, flexibility, and innovation will be able to succeed.

-Has the IDBank’s loan policy transformed? At which branches of the economy is it now aimed?

-Still at the initial period of the expected changes, we had already noted that the Bank had somewhat revised its loan policy, and had placed the emphasis on financing the economy of the Republic of Armenia. In making this decision, the Bank was guided solely by the wish to ensure qualitative indicators and activity efficiency. At the same time, however, IDBank will continue to be a universal bank, and to present a wide range of offers and products to clients.

-What new offers will the IDBank present in 2018? After rebranding, what products have you launched toward retail and corporate loans?

-Shortly after rebranding, the Bank already launched several new products and programs. In particular, our individual clients now have the opportunity to obtain Classic and Gold VISA PayWave cards, and with several advantages: 0% cash out payment from the ATMs of all banks that are member of the ArCa system, up to 4% calculated income on the positive balance of the card account, 0% commission on card-to-card transfers. We even offer to decide on the card’s preferred color—from our brand options: orange, white, and gray.Until the year’s end, corporate clients can carry out some types of their SWIFT transfers for 0% commission, open bank accounts free of charge, activate bank-client system free of charge, [and] make use of suitable types of loans and several other advantages.

Thanks to the Privilege Banking service, we offer a totally free of charge personalized approach to the Bank clients who have deposits totaling USD 50,000 and more. Being served by individual managers, the clients receive complete and high-quality consulting on banking services, they are served at a specially designed comfortable salon, and make use of individual offers.

IDBank has already managed to carry out social, entertainment programs too. Under the brand, IDBank carried out the first CSR program by joining the World Vision charity organization’s initiative: the #DreamCamp campaign. With this program, 150 children from needy families spent their holidays in one of the summer camps of Armenia.

For all football lovers, during the [2018 football] World Cup, we had organized the open-air IDBank Fan Zone at the English Park [in capital city Yerevan] where we were watching, together with football lovers for one month—in a comfortable pavilion, with a huge led screen—all World Cup games. And before every match, we were making interesting initiatives, draws, [and] handing out gifts. The [World Cup] final also was not an exception. The draw, entertainment program, and happy football environment was ensured.

The programs are really a lot, and the key initiatives—yet to come. Without opening the ‘brackets,’ we will present [ourselves] very soon, until the end of this year, with new, modern solutions, and offer a completely new environment for our clients.
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Information updated 10.03.2022 09:08
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