Retail Base Rate Review

Dear Customer,

Please be informed, that on February 26, 2024 “HSBC Bank Armenia” CJSC (hereafter: the Bank) has revised its AMD, USD, EUR and GBP retail base rates (RBR), as a result of which AMD RBR has remained unchanged, while USD, EUR and GBP RBRs have increased by 0.5, 0.8 and 0.7 percentage points respectively.

AMD retail base rate review date: 26.02.2024

Effective from: 12.03.2020
 

RBR explanatory note

As of 26.02.2024, according to Central Bank of Armenia (CBA) publication, the weighted average of AMD retail deposit rates of the Republic of Armenia (RA) banking sector - with maturity of 181 days to 1 year for December 2023 and January 2024 is 9.1%. Thus, the primary reference rate, calculated as the simple average of the latest available 2-month data as of 26.02.2024 is equal to 9.1%.

Taking into consideration that, as of the review date, the difference between the effective RBR (9%) and the calculated reference rate does not exceed 0.5 percentage points, the value of the RBR as a result of the review stays unchanged for the next period and is set at 9%.
 

Reference rate explanatory note

Primary reference rate. As per RBR review date on 26.02.2024 the latest data available in the CB RA publication “Volumes and interest rates of deposits attracted from and loans extended to real sector by commercial banks” is as of December 2023 and January 2024. Taking into consideration that as per the publication, the weighted average of AMD retail deposit rates of RA banking sector - with maturity of 181 days to 1 year for mentioned 2 months is 9.10% and 9.11% respectively, the primary reference rate, calculated as the simple average of available latest 2-month data as of 26.02.2024 is set at 9.1%.
 

Reference rate explanatory note

Secondary reference rate (published for informational purposes only). As per the RBR review on 26.02.2024 the latest data available in the CBA publication on 'Interest rates of deposits attracted by commercial banks (monthly)' is as of December 2023 and January 2024. Taking into consideration that, as of the review date, the simple average of AMD retail and corporate deposit rates of the RA banking sector with up to 1 year and 1 year plus buckets is 9.01% ((8.16% + 9.86%)/2) for December 2023 and 8.95% ((8.05% + 9.85%)/2) for January 2024, the secondary reference rate, calculated as the simple average of data available for the latest 2 months and rounded to one decimal place as of 26.02.2024 is set at 9.0%.

USD retail base rate review date: 26.02.2024

Effective from: 22.04.2024

RBR explanatory note

As of 26.02.2024, according to CBA publication, the weighted average of USD retail deposit rates of RA banking sector with maturity of 181 days to 1 year for December 2023 and January 2024 is 3.2%, thus, the primary reference rate calculated as the simple average of available latest 2-month data is equal to 3.2%.

Taking into consideration that as of the review date, the difference between the effective RBR (2.7%) and the calculated reference rate exceeds 0.5 percentage points, the value of the RBR as a result of the review is changed for the next period and is set at 3.2%.
 

Reference rate explanatory note

Primary reference rate. As per RBR review on 26.02.2024 the latest data available in CB RA publication 'Volumes and interest rates of deposits attracted from and loans extended to real sector by commercial banks' is as December 2023 and January 2024. Taking into consideration that as per CBA publication, as of the review date the weighted average of USD retail deposit rates of RA banking sector with maturity of 181 days to 1 year is 3.18% for December 2023 and 3.17% for January 2024, the primary reference rate calculated as the simple average of available latest 2-month data and rounded to one decimal place as of 26.02.2024 is set at 3.2%.
 

Reference rate explanatory note

Secondary reference rate (published for informational purposes only). As per RBR review on 26.02.2024, the latest data available in CBA publication 'Interest rates of deposits attracted by commercial banks (monthly)' is as of December 2023 and January 2024. Taking into consideration that as of the review date, the simple average of USD retail and corporate deposit rates of RA banking sector with up to 1 year and 1 year plus buckets is 3.33% ((2.71% + 3.94%)/2) for December 2023 and 3.47% ((2.90%+ 4.04%)/2) for January 2024, the secondary reference rate, calculated as the simple average of data available for the latest 2 months and rounded to one decimal place as of 24.02.2024 is set at 3.4%.

EUR retail base rate review date: 26.02.2024

Effective from: 22.04.2024

RBR explanatory note

As of 26.02.2024 according to European Central Bank publication, the simple average of €STR index for the available last six months' data in the period of 24.08.2023 to 23.02.2024 rounded to one decimal place is 3.9%. Thus, the primary reference rate, calculated as the sum of the latter and 3% fixed margin, is set at 6.9%.

Taking into consideration, that as of the review date the difference between the effective RBR (6.1%) and calculated reference rate exceeds 0.5 percentage points, the value of the RBR as a result of the review is changed for the next period and is set at 6.9%.
 

Reference rate explanatory note

Primary reference rate. As per RBR review on 26.02.2024, the latest available data for €STR index in European Central Bank publications is as of 23.02.2024, hence, the index calculated as the simple average of data in the period of 24.08.2023 to 23.02.2024, is equal to 3.87%, rounded to one decimal place. The primary reference rate, being equal to the calculated €STR index plus a 3% fixed margin, as of 26.02.2024 is set at 6.9%.
 

Reference rate explanatory note

Secondary reference rate (is published for information purpose only). As per RBR review date the latest data available in European Central Bank publications for Key ECB rate is as of 25.02.2024, hence as of 26.02.2024 the index defined as the simple average of the data in the period of 25.08.2023 to 25.02.2024 is equal to 3.96%. Therefore, the secondary reference rate, being equal to the sum of the calculated Key ECB index, rounded to one decimal place and 3% fixed margin, as of 26.02.2024 is set at 7.0%.