Polish Getin Holding S.A. (Wroclaw) on February 5 signed an agreement with a Ukrainian buyer for the sale of 100% of the shares of subsidiary Idea Bank (Lviv) and 100% of the shares of New Finance Service (Kyiv), Getin Holding S.A. has said.
According to a report on biznes.pap.pl, the parties plan to close the potential deal by September 30, 2021.
Before that the buyer will conduct due diligence the companies, and after a positive result of the due diligence the parties will proceed to agree on the terms of the potential transaction.
Getin Holding also reports that the company granted the buyer exclusive rights for negotiations until April 30, 2021.
Idea Bank (formerly Plus Bank) was founded in 1989. As of January 1, 2020, its sole shareholder was the financial group Getin Holding S.A. (Poland).
According to the National Bank of Ukraine, as of October 1, 2020, Idea Bank ranked 24th among 74 operating banks in terms of total assets (UAH 8.057 billion).
Ukrainian banks in 2020 reduced the number of structural divisions by 10.8%, or by 868 branches, to 7,134.
According to the data posted on the website of the National Bank of Ukraine (NBU), by the end of 2020 Oschadbank closed the operation of 490 branches (having reduced their number to 1,837), PrivatBank – 211 (to 1,717), Raiffeisen Bank Aval – 100 (to 396), Alfa-Bank – 39 (to 218), TAScombank and Sberbank – 16 each (to 87 and 90 respectively), UkrSibbank – 12 (to 272), Credit Dnipro Bank and PIB – eight (to 28 and 26, respectively) and Ukrbudinvestbank – seven (to 48).
It is indicated that in October-December 2020, banks closed 195 structural divisions, in particular Oschadbank – 94, Raiffeisen Bank Aval – 60, PrivatBank – 33.
At the same time, banks opened 79 branches in 2020, in particular state-owned Ukrgasbank – 26 divisions, expanding its regional network to 276 branches, Accordbank – eight (to 79), Bank Sich – six (to 60), FUIB – 16 (to 224), A-Bank – seven (to 232), and Bank Alliance – five (to 25).
According to the National Bank, as of January 1, 2021, Oschadbank remains the leader in the number of branches (1,837), PrivatBank ranks second (1,717), Raiffeisen Bank Aval is third (396), Ukrgasbank is fourth (276), and UkrSibbank ranks fifth (272).
The single counterparty exposure limit (H7, should be no more than 25%) as of December 1 was violated by Prominvestbank (84.03%), Industrialbank (82.88%), Sberbank (53.13%) and Misto Bank (39.21%), according to the website of the National Bank of Ukraine (NBU).
According to the regulator, the related party transactions exposure limit (H9, should not exceed 25%) was violated by Megabank (37.56%), First Investment Bank (52.6%) and Unex Bank (29.21%).
The limit on bank total long open FX position (L13-1, should be no more than 10%) was violated by Prominvestbank (133.41%), Oschadbank (119.97%), PrivatBank (98.27%) and Industrialbank (13.15%).
The limit on bank total short open FX position (L13-2, should be no more than 10%) was violated by Prominvestbank (167.35%).
Misto Bank, recognized by the NBU as insolvent, violated the short-term liquidity ratio (H6, at least 60%), which amounted to 44.36%.
The fall of the Ukrainian economy in 2020 may amount to 5.5% of GDP with a further recovery of growth by 3.5-4% in the next two years, analysts at Deutsche Bank expect.
According to the materials of Emerging Markets Outlook 2021, experts admit that the next tranche of the International Monetary Fund (IMF) will be allocated to Ukraine in early 2021, which will pave the way for obtaining funding from other international partners.
At the same time, the central bank will leave the discount rate at 6% per annum, according to the review.
The net profit of Idea Bank (Lviv) amounted to UAH 77.254 million in January-September 2020, which is 73% less than in the same period of 2019 (UAH 285.564 million).
According to a report on the bank’s website, for the third quarter its net profit amounted to UAH 44.95 million, which is 61.5% less than in the third quarter of last year (UAH 116.57 million).
The net interest income of Idea Bank increased by 7% to UAH 1.258 billion in the nine months compared to the corresponding period of 2019.
The bank’s assets decreased by 11.9% to UAH 4.76 billion in January-September 2020, including loans to customers by 9.1% to UAH 3.76 billion.
The bank’s liabilities have decreased by 11.2% to UAH 3.98 billion since the beginning of the year, including customer funds by 10.95% to UAH 3.73 billion.
The bank’s net worth during this period decreased by 15.4% to UAH 784.22 million, the charter capital remained at the level of UAH 298.742 million.
Idea Bank (former Plus Bank) was founded in 1989. Its sole shareholder as of January 1, 2020 was the financial group Getin Holding S.A. (Poland).
According to the National Bank of Ukraine, as of September 1, 2020, Idea Bank ranked 24th among 75 operating banks in terms of total assets (UAH 8.287 billion).
The net profit of UkrSibbank (Kyiv) amounted to UAH 1.013 billion in January-September 2020, which is half of the same period in 2019 (UAH 2.062 billion), according to the bank’s quarterly reports posted on the bank’s website.
According to it, in the third quarter UkrSibbank’s net profit amounted to UAH 343.03 million, which is 44.5% less than in July-September 2019 (UAH 612.84 million).
The bank’s net interest income (after deductions on credit losses) decreased by 14.2% to UAH 4.15 billion in the nine months compared to the same indicator a year earlier, the net operating income decreased by 44.5% to UAH 1.24 billion.
The bank’s assets increased by 26.2% to UAH 67.13 billion in the nine months, including funds in other financial institutions at amortized cost by about 56.5% to UAH 22.83 billion.
Liabilities of UkrSibbank increased by 27.9% up to UAH 59.25 billion in January-September. In particular, customer funds increased by 28.2% to UAH 58.1 billion.
The bank’s equity capital increased by 14.8% to UAH 7.86 billion in the nine months and the charter capital remained at the level of UAH 5.069 billion.
UkrSibbank was founded in 1990. Its shareholders are BNP Paribas S.A (France), which owns 60% of the bank’s charter capital, and the European Bank for Reconstruction and Development with 40%.
According to the NBU, as of September 1, 2020, UkrSibbank ranked eighth among 75 operating banks in Ukraine in terms of total assets (UAH 67.146 billion).
