Business news from Ukraine

OTP BANK UKRAINE EXPECTS TO GET UAH 2 BLN IN NET PROFIT

Kyiv-based OTP Bank expects to post UAH 2 billion in net profit by the end of 2018, Chairman of OTP Bank’s board Tamas Hak-Kovacs has said. “In the first four months of this year, the bank’s net profit amounted to UAH 723 million. Net profit in 2018 may amount to UAH 2 billion. It will entirely be capitalized. This is also part of our strategy – to capitalize profits, therefore this money is additional liquidity, and it is in the Ukrainian hryvnia,” he told Interfax-Ukraine in an interview.
Due to profitable operating activities and the consistent implementation of a balanced financial and credit policy, OTP Bank improved the result of 2017 and posted net profit under IFRS was UAH 1.02 billion.
In Ukraine, OTP Bank acts as the flagship of the OTP banking group, registered by the National Bank of Ukraine. The group also includes LLC OTP Capital assets management company and LLC OTP Leasing. OTP Bank ranked 11th in terms of net assets worth UAH 29.822 billion among 84 banks operating Ukraine as of January 1, 2018, according to the National Bank of Ukraine.

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UKRAINIAN AGRO-INSURANCE COMPANY INCREASES CHARTER CAPITAL BY 25%

PrJSC Ukrainian Agro-Insurance Company (UAIC, Cherkasy) will increase charter capital by 25%, to UAH 15 million through the private placement of common registered shares at a price of UAH 477.48 per share to the tune of UAH 3 million. The face value of one share is UAH 171.43.
This decision was taken by the company’s shareholders at a meeting on June 26, 2018, the company said in an official statement. As reported, UAIC was in the red in 2017 and its net loss totaled UAH 20.3 million against UAH 10.207 million in net profit in 2016.
Over the year, its assets grew by 7.5%, to UAH 53.7 million. Its net worth as of December 31, 2017 decreased by 40%, to UAH 30.714 million, cash and cash equivalents increased by 46.3%, to UAH 16.581 million. Accounts receivable amounted to UAH 4.391 million (UAH 33.016 million in 2016).
UAIC’s long-term liabilities grew by 23%, to UAH 7.6 million, current liabilities are estimated at UAH 15.831 million (UAH 815,000 in 2016). Its charter capital remained unchanged in 2017 and stood at UAH 12 million.
PrJSC Ukrainian Agro-Insurance Company (IC Salamander-Dnepr) has been operating on the market since 1995. The National Commission for the State Regulation of Financial Services on April 13, 2017, allowed Dobrobut agricultural firm to acquire a 75.59% stake in the insurer. According to the Unified State Register, 98.26% of Dobrobut’s charter capital belongs to LLC Astarta-Kyiv Firm.

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STATE-RUN UKRENERGO ACCEPTS FOUR BIDS FROM INSURERS FOR MEDICAL INSURANCE TENDER

State-run Enterprise Ukrenergo on June 26 ceased accepting bids for a tender to provide voluntary medical insurance services to its employees, according to the ProZorro electronic procurement system.
Four insurance companies – Krayina, Krona, NaftaGazStrakh, and Kniazha Vienna Insurance Group (all – Kyiv-based) – submitted their bids.
As reported, the expected bid was estimated at UAH 8.187 million.
The tender will be held on August 1.
Ukrenergo operates trunk and interstate power grids, as well as performs the centralized dispatching of the united energy system in the country. The company is a state-owned enterprise; it is subordinate to the Ministry of Energy and Coal Industry. It will be reorganized into a private joint-stock company.
Ukrenergo unites eight regional electric power grids: the Dniprovska, Donbaska, Zakhidna, Krymska, Pivdenna, Pivdenna-Zakhidna, Pivnichna, and Tsentralna.

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