Banking

Research

Banking
August 26, 2009Ukrainian banks – The calm before the next storm?

The end of spring and the summer have brought some respite for the Ukrainian banking system. A number of positive factors, including currency exchange rate stabilization, drying up of the deposits outflow and recovery of the banking system’s liquidity decreased our worries about the sector’s future.

Banking
June 25, 2009Parliament prohibits FX lending and accepts restructuring rules

On 23, June Ukrainian Parliament has passed a bill #3585 which main official aim is to “overcome the consequences of financial crisis” how it is written in the name of draft. This document regulates some issues of debt restructuring procedure, restricts foreign currency lending and preliminary external debt repayments. The law was passed by the overwhelming majority of parliament and main disputable issues were solved in compromise way, therefore we anticipate that President will sign this law soon. The final version of bill that was passed still hasn’t been officially published, therefore in our analysis we rely on information available from open sources such as news postings, newspapers, authorities’ interviews and latest available versions of draft.

Banking
December 22, 2008Ukrainian hryvnia – how to stop devaluation?

The instability regarding currency exchange has become the main theme in Ukrainian life these days. Severe UAH devaluation has cast doubt on the ability of some Ukrainian companies to meet their FX obligations, as well as the ability of retail loan borrowers to repay their FX debts. Ukraine’s President Viktor Yuschenko, NBU Chairman of the Board Volodymyr Stelmakh and Ukraine’s Finance Minister Viktor Pynzenyk have made a series of important declarations about their intentions and further actions regarding the stabilization of the situation in the banking sector and the FX market. As well, Prime Minister Yulia Tymoshenko has said that she wants the President to resign the NBU’s Chairman of the Board, the respective draft legislation for which has already been registered in the Parliament. We would like to provide our view about the latest declarations made by authorities.

Banking
October 12, 2007Megabank: Five Good Reasons

Megabank [MEGA] is a mid-size, Kharkiv-based bank, and is moving towards becoming one of Ukraine’s top 20 banks. Notably, it combines considerable growth with a high quality loan portfolio and a low cost-to-income ratio. MEGA is also a very transparent, and works with World bank, EBRD, and the IFC on a number of corporate governance and lending programs. Megabank should significantly benefit from the growing Ukrainian middle class: 40% of its retail business is represented by car loans, which, in turn, have one of the highest levels middle class penetration levels – 23%. When combined with mortgage-secured consumer loans, car lending should enable MEGA to achieve a true breakthrough in retail.

Banking
July 18, 2007Rodovid Bank – Surfing on Retail

Rodovid Bank [RODB] is ranked 18th among Ukrainian banks with total assets reaching USD 944 mln in May 2007. With a special focus on retail, mortgage, and credit card loans, Rodovid Bank is likely to move further up the banking sector ladder, striving to reach a top 10 position. Significant market expansion on the national level and product development are among the bank’s top priorities.

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Daily monitor

Banking
February 2, 2010USCB reports earnings, BAVL posts net loss in 4Q09

The two major Ukrainian foreign-owned banks reported on their 4Q09 financial results. Ukrsotsbank [USCB UZ] reported a UAH 42 mln net income in 4Q09. In FY2009, the Bank posted a UAH 127 mln net income.

Banking
January 28, 2010FUIB plans to attract USD 50 mln in subordinated debt

The First Ukrainian International Bank (FUIB) has announced that, in 2010, it intends to attract subordinated debt in the amount of USD 50 mln. It is assumed that the Bank will obtain such a loan for a period of five years.

Banking
January 26, 2010F&C successfully pays USD 5.2 mln coupon

Finance and Credit Bank (F&C) paid USD 5.187 mln coupon over its USD 100 mln Eurobond issue. Within the bounds of the restructuring agreement, the Bank also paid 5% of the Eurobonds nominal value. Earlier, bondholders agreed to the postponement of the redemption of 95% of the original redeemable sum for the Eurobonds from January 2010 to January 2014, as well as an increase in the coupon rate from 10.375% to 10.5%.

Banking
January 14, 2010Ukraine’s bank deposits grew by 2.6% in December 2009

The NBU has released its statistics for December 2009, which underline the positive dynamics of the basic indicators in the banking sector. Namely, bank deposits grew by 2.6%, with the deposits of legal entities increasing by 3.8%. In contrast, throughout 2009, they were on the decline. In December, the money supply grew by 3.6% to reach UAH 487.5 bln. All of these facts, taken together, indicate an increase in economic activity in general.

Banking
January 12, 2010F&C bondholders agree to Eurobond’s restructuring

The Finance and Credit Bank (F&C) has reached an agreement with Eurobond holders concerning the restructuring of USD 100 mln worth of Eurobonds. Bondholders agreed to postpone the redemption of 95% of the original redeemable sum for the Eurobonds from January 2010 to January 2014, as well as an increase in the coupon rate from 10.375% to 10.5%. The remaining 5% of the Eurobonds nominal value would be paid in the near future.

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