The National Bank of Ukraine (NBU) has started the second stage of the resilience assessment of banks – the asset quality review (AQR) confirmed by an external auditor and started stress testing of 29 banks, according to a survey of the banking sector posted on the website of the NBU.
According to preliminary estimates, the number of banks requiring capital injections in the baseline and negative stress test scenario will decrease compared to the previous year, the central bank said in the survey.
As the regulator recalled, by the end of 2019, banks need to form a capital conservation buffer in the amount of 0.625%. It will become mandatory for each bank from the beginning of 2020, when the first stage of the introduction of the capital conservation buffer will begin. In the future, the size of the buffer will increase gradually every year and will reach 2.5% from January 1, 2023. The formation of the corresponding buffer will ensure that banks create a stock of capital in excess of the minimum requirements. In the future, this will provide an opportunity of absorbing the possible losses that may arise in a general economic recession, without violating the capital adequacy ratio.
The NBU also announced that during the second quarter the method for determining systemically important banks will be changed and an updated list of such banks will be made public. In the future, the NBU will require them to form a buffer of system importance.
As reported, in 2019, 29 banks that account for 93% of the banking system will undergo stress testing in addition to the AQR. These 29 banks were rated as the largest ones as of November 1, 2018 by three indicators: risk-weighted assets, retail deposits, and retail loans.
The following banks will be tested: state-owned PrivatBank, Oschadbank, Ukreximbank and Ukrgasbank, private Alfa-Bank, Raiffeisen Bank Aval, FUIB, UkrSibbank, OTP Bank, Credit Agricole Bank, Pivdenny Bank, TAScombank and Kredobank. The list also includes Sberbank, ProCredit Bank, Ukrsotsbank (the results of stress testing for the bank will be assessed taking into account the dynamics of its joining Alfa-Bank), Megabank, Credit Dnipro Bank, Universal Bank, A-Bank, Prominvestbank, Idea Bank, Bank Vostok, MTB Bank, Bank of Investments and Savings, Industrial Bank, Bank Globus, International Investment Bank and Bank Forward.
According to the resilience assessment findings, the regulator will determine the required levels for the regulatory capital adequacy ratio (N2) and the common equity adequacy ratio (N3). The required level of the capital adequacy ratios will be estimated in order to ensure banks’ compliance with the minimum requirements of N2 and N3 according to the baseline scenario (10% and 7%, respectively) and less strict requirements to the said ratios under the adverse scenario (5% and 3.5%, respectively) throughout the entire forecast period.
In 2018, the NBU has launched resilience assessment of banks that includes stress testing a list of banks defined by the NBU.
Bank Credit Dnepr (Kyiv) is boosting its charter capital by UAH 1.173 billion or 43.1%, to UAH 3.893 billion via an additional issue of shares.
The bank reported in the information disclosure system of the National Commission for Securities and the Stock Market, the decision was made by the only shareholder in the bank on November 5.
The bank will privately place the additionally issued shares with a face value of UAH 1. The sole shareholder will buy the shares.
According to a press release from the Bank Credit Dnepr, referring to Board Chairperson Olena Malynska, this capitalization program is an integral part of the restructuring plan developed according to the results of the bank’s stress testing by the regulator and in accordance with its recommendations.
“The shareholder capitalizes the bank for the fourth time in three years, thus confirming confidence in the success of the post-crisis business strategy of the financial institution. Our further systematic work to improve the financial performance and asset quality, increase efficiency and the volume of new business, along with systemic support from the shareholder guarantee the implementation of the restructuring plan in a timely manner and provide an opportunity to start a sustainable profitable activity,” Malynska said.
Bank Credit Dnepr was founded in 1993. Its sole shareholder is Brancroft Enterprises Limited, which indirectly belongs to Victor Pinchuk.
The bank ranked 21st among 83 operating banks in the country as of July 1, 2018 in terms of total assets (UAH 9.08 billion), according to the NBU.
Bank Credit Dnepr (Kyiv) has increased its charter capital by UAH 1.199 billion, or 78.8%, to UAH 2.72 billion through an additional share issue.
According to a press release of the financial institution, on August 15 the bank registered the new wording of the charter in connection with the increase of the charter capital.
Capitalization was carried out by a private placement of additionally issued shares.
Bank Credit Dnepr was founded in 1993. Its sole shareholder is Brancroft Enterprises Limited, which indirectly belongs to Victor Pinchuk.
The bank ranked 21st among 84 operating banks in the country as of June 1, 2018 in terms of total assets (UAH 9.439 billion), according to the National Bank of Ukraine.
Net profit of Bank Credit Dnepr (Kyiv) in January-June 2018 totaled UAH 40.251 million, the bank has said in a press release.
“The profit of Bank Credit Dnepr in April-June 2018 totaled UAH 157.175 million, and in H1 2018 the bank saw UAH 40.251 million in profit,” the bank said.
Net interest income in January-June 2018 grew by 33.2% year-over-year, to UAH 85.181 million. Net commission fee grew by 28%, to UAH 64.782 million.
Net worth in H1 2018 rose by 2.4%, to UAH 838.281 million. Assets totaled UAH 9.078 billion. Funds of clients accounted for UAH 8.183 billion.
Bank Credit Dnepr was founded in 1993. Its only owner is Victor Pinchuk.
The bank ranked 21st among 84 operating banks in the country as of June 1, 2018 in terms of total assets (UAH 9.439 billion), according to the National Bank of Ukraine.
The net loss of Bank Credit Dnepr (Kyiv) for January-March 2018 amounted to UAH 116.924 million, which is twice as much as in the same period of 2017.
According to the financial report posted on the bank’s website, its net interest income decreased by 36.9%, to UAH 40.23 million, net commission income by 30%, to UAH 29.873 million. Other non-interest loss amounted to UAH 24.105 million against UAH 30.15 million of other non-interest income in January-March 2017.
Operating expenses increased by 4%, to UAH 127.942 million.
The bank’s assets for the three months decreased by 9.36%, to UAH 8.417 billion. The loan portfolio was almost unchanged and by the end of March stood at UAH 4.116 billion.
In liabilities, the deposit portfolio decreased by 8.13%, to UAH 7.658 billion
Bank Credit Dnepr was founded in 1993. Its only owner is Victor Pinchuk.
The bank ranked 21st among 84 operating banks in the country as of January 1, 2018 in terms of total assets (UAH 9.411 billion), according to the National Bank of Ukraine.
