The largest state-owned bank in Ukraine, PrivatBank, saw UAH 3.7 billion of net profit in Q1 2018, which is a 3.3-fold rise year-over-year (UAH 1.108 billion), the bank has said in a press release.
“In the first three months net commission income totaled UAH 3.4 billion… Net interest income came to UAH 3.3 billion. In Q1 2018, the bank earned UAH 6.7 billion of interest income thanks to the expansion of the loan portfolio of individuals by 6% (UAH 2.5 billion) and growth of the portfolio of corporate clients by 18% (UAH 1.1 billion),” the bank said.
As reported, PrivatBank in Ukraine should make profit in 2018 and generate no less than UAH 8 billion of profit starting from 2020, according to the strategy for its development until 2022 approved by the supervisory board of the financial institution.
Nationalized late 2016 PrivatBank in 2017 reduced the consolidated loss to UAH 23.99 billion from UAH 176.64 billion a year earlier.
In total, the bank was capitalized by UAH 155.3 billion through issuance of government bonds.
At the end of June 2017, the Cabinet of Ministers decided to capitalize the bank by another UAH 38.5 billion (almost $1.5 billion) on the basis of the proposals of the NBU and the conclusion of an independent auditor of PrivatBank, EY. The first tranche of UAH 22.5 billion was provided to the bank in July 2017, the second of UAH 16 billion – in December.
Adler International, developing the CCC shoe franchise store chain, has sold some stores in Poland and plans to develop the CCC shoe franchise store chain in Ukraine using the money received. According to a posting on the website of CCC, Adler International sold 41 CCC stores in Poland for PLN 68.5 million (UAH 506.9 million). “Under to the agreement, the seller [Adler International] intends to use part of the funds received from the sale of the retail chain to accelerate the expansion of CCC franchise stores in Ukraine and to open 50 new CCC stores by 2021,” the company said.
According to the company, the gross profit of the purchased retail chain in 2017 was PLN 18.5 million (UAH 136.9 million). The companies entered into a deal on April 11. According to the CCC, the transaction is the next stage in the implementation of the strategy of CCC S.A. Capital Group on the development of the chain. As reported, CCC Ukraine LLC (Lviv), developing the shoe store chain of the Polish CCC brand, seeks to open up to 15 new stores in the country in 2018.
ADLER INTERNATIONAL, CCC FRANCHISE STORES, POLAND'S RETAILER
Ukrainian metal and mining enterprises in January-April 2018 boosted rolled steel output by 1% year-over-year, to 6.072 million tonnes. According to the Ukrmetalurgprom association, if the production figures are compared, taking into account two months of operation of the enterprises in 2017 in the government uncontrolled areas (before losing control over them), steel smelting fell by 1.4%, to 6.913 million tonnes, and cast iron output grew by 8.9%, to 6.885 million tonnes.
If the production figures of enterprises in the government uncontrolled areas are not taken into account, rolled steel output grew by 8%, steel – by 5% and cast iron – by 18%.
In April 2018, Ukrainian metal companies produced 1.639 million tonnes of cast iron (98% to the previous month), 1.687 million tonnes of steep (99%) and 1.479 million tonnes of rolled steel (98%).
“A slight reduction in production of the key types of products in April compared with the previous month is linked to repair works at some facilities,” the association said.
Ukrainian President Petro Poroshenko has met with Chief Executive Officer of Head International Holding GmbH and former Special Representative of British Prime Minister Gordon Brown Johan Eliasch who announced the decision to build the largest production in Ukraine, Vinnytsia region. “I want to congratulate you on this important decision. This is the right step of Head company. Your company coming to Ukraine is a unique combination of the potential of our country and your company,” the president said.
In turn, Eliasch thanked the president for having him and shared impressions from the changes in Ukraine. He also commented on his decision to invest in our country: “We carried out a thorough analysis not only in Ukraine, but also in other countries. I think Ukraine offers the best opportunities for the competitive production in this part of the world, even better than in China.”
The Head executive director said he was impressed with the development of Ukraine. “The fact that you invest 5-7% of GDP in the defense sector is good. This guarantees political stability. It is impressive how you settle the situation with Russia. The agreements you reached with the EU are good, too,” he said.
According to him, the British government actively supports the development of relations and trade between our countries. “The more we do to support the British business in Ukraine, the better. First of all, it concerns the conclusion of the FTA agreement,” he stressed.
Poroshenko thanked Eliasch for the decision to found the production of his company in Ukraine.
The president emphasizes that the international organizations, starting with the IMF, World Bank, EBRD and others, noted that Ukraine had introduced more reforms over the past four years than in previous years of independence.
“I think it is extremely important to have such solidarity as the European Union, the United States of America demonstrate with regard to Ukraine. And also transatlantic solidarity, especially from the United Kingdom,” the Head of State said.
Poroshenko also stressed that the Ukrainian authorities were taking all necessary measures to improve the investment climate and maximize the attraction of foreign investors to the Ukrainian economy. “I am glad that your first impressions from the first steps in Ukraine demonstrate that our efforts bring really positive results,” the president said.
Head UK Ltd. is one of the world’s leading manufacturers and sellers of sports equipment and clothing. The company’s business includes five divisions: winter sports, racket games, diving, sportswear and licensing. The trademarks of the company are HEAD, Penn, Tyrolia, Mares, SSI, and rEvo.
Austria’s HEAD International Holding GmbH, the subsidiary of Head UK Ltd, plans to invest EUR80 million in the construction of its “new largest plant” in the territory of Vinnytsia industrial park, First Deputy Prime Minister, Minister of Economic Development and Trade of Ukraine Stepan Kubiv said after a meeting with the company representatives.
“The project in Ukraine will be implemented in three stages: in 2019-2020 there will be the construction of 1-1.5 hectares of new production facilities. It is planned to attract about 200-300 people,” he wrote on Facebook.
According to the official, in 2020-2021 it is planned to build an additional 1-1.5 hectares of new production facilities and create jobs for 600 people, and during the last third stage in 2022-2023 to build another 1.5-2 hectares of new production facilities and expand the working staff to 1,000 people.
Kubiv added that after the completion of the last stage of the project, HEAD plans to annually spend about UAH 150 million on wages for workers.
“After the successful implementation of the project, the company will also consider the possibility of transferring some of its teams in the field of digital technologies or IT to Vinnytsia and moving additional production facilities to Ukraine,” he said.
Head UK Ltd. is one of the world’s leading manufacturers and sellers of sports equipment and clothing. The company’s business includes five divisions: winter sports, racket games, diving, sportswear and licensing. The trademarks of the company are HEAD, Penn, Tyrolia, Mares, SSI, and rEvo.
The International Monetary Fund (IMF) considers it possible to introduce an exit capital tax in Ukraine if mechanisms to cover possible budget losses are available, the member of the Verkhovna Rada Committee on Taxation and Customs Policy, People’s Deputy Tetiana Ostrikova (Samopomich), has said after a meeting with IMF representatives in the United States. “The first news is that the IMF does not oppose this tax and considers such a model of profit taxation possible taking into account certain factors. The second news is that the IMF does not directly support the bill on the exit capital tax, which the Ukrainian government uses, covering its inactivity in the tax sphere,” the press service of the Samopomich party said.
The party notes that the issue of the introduction by the president of Ukraine of a draft law on the exit capital tax, prepared by a working group under the Ministry of Finance, to the parliament, was postponed indefinitely, referring to correspondence with the IMF.
At the same time, the political force explained that the issue of the exit capital tax was not included in the memorandum between the IMF and Ukraine, therefore it is not a top priority for the fund. At the same time, the IMF is concerned about a lack of tangible tax reforms.
