Business news from Ukraine

Business news from Ukraine

National Bank has ranked Ukrainian financial companies by revenue in 2023

Providing microcredits “Ukr Credit Finance” (TM “CreditKasa”) and “1 Safe Agency of necessary loans” (TM “MyCredit”) received the highest revenue among financial companies in 2023 – respectively UAH 3.12 billion and UAH 2.33 billion, the National Bank reported on its website.

The next three companies were formed by FC “E Groshi Kom”, “Miloan” and “Aventus Ukraine” (TM CreditPlus), whose revenue amounted from UAH 1.66 billion to UAH 1.46 billion.

According to the results of 2022, the leaders in terms of revenue were Finod LLC, engaged in currency exchange and deprived of all licenses by the National Bank in August 2023, and Novapey payment system, the data of which the National Bank stopped publishing after re-licensing of payment systems. The net income of these companies in 2022 amounted to respectively UAH 5.41 and 5.18 billion, while the places from third to fifth were taken by “Ukr Credit Finance”, “Aventus Ukraine” and “E Groshi com” with revenue from UAH 2.50 billion to UAH 1.27 billion.

According to the results of 2023, net income over UAH 1 billion was received by five more companies, of which only one is not from the microcredit market: the network of payment terminals FC “Kontraktovy Dom” (TM “Easypay”), which received UAH 1.38 billion.

Following with relatively close revenue figures – from UAH 1.33 billion to UAH 1.07 billion are Lineura Ukraine (TM “Credit7”), LLC “Maniveo Fast Financial Assistance” (Moneyveo), “Consumer Center” (TM “ShvidkoGroshi”) and “Advance Credit”, which demonstrated the highest growth dynamics by the previous year among the entire top ten – almost 37 times.

Among the leaders, the highest labor costs were incurred by “Consumer Center” – UAH 167.8 million, or 13.6% of revenue, while at “Avans Kredit” they amounted to UAH 29.3 million, or 1.8% of revenue.

According to the NBU data, in 2023 the profitability of companies improved dramatically: of the 40 largest representatives of the market, all, except for the State Mortgage Institution (SMI), ended the year with net profit, which totaled UAH 1.57 billion, while a year earlier there were 15 unprofitable companies.

The leader in net profit among financial companies for the past year was PJSC “Ukrfinzhytlo” – UAH 5.94 billion. It is followed by Ukr Credit Finance – UAH 202.7 million, the State Fund for Entrepreneurship Development, the operator of state support programs – UAH 177.7 million and Bizpozyka – UAH 177.1 million.

Slightly behind was Maniveo Fast Financial Aid, which earned UAH 167.7 mln, which allowed it to partially offset UAH 625.6 mln of the previous year’s net loss.

“Ukrfinzhytlo” also significantly outperformed all and in terms of assets – 60.89 billion UAH, owing the primacy in these two categories to its capitalization at the expense of government bonds.

Avior FC specializing in lending to agrarians is next – UAH 12.05 billion, whose revenue amounted to UAH 125.4 million last year.

The other eight companies in the top ten with assets from UAH 8.68 billion to UAH 3.55 billion had no revenue last year, while salary expenses and net profit were minimal.

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Financial companies and pawnshops increased their assets by 5.8%

Despite the reduction in the number of financial companies and pawnshops in July-September 2023, the segment’s assets, on the contrary, increased by 5.8%, according to the “Review of the Non-Banking Financial Sector. November 2023”.

According to the report, the volume of financial services provided increased in all major types, with the exception of factoring, which remained unchanged.

The regulator notes that the issuance of new loans to households in January-September this year decreased by 40% compared to the same period in 2021.

At the same time, the volume of financial leasing, which is mainly provided by legal entities – lessors, has been growing for the fifth consecutive quarter. New leasing agreements were concluded for the purchase of cars, agricultural machinery, and trucks. The sources of leasing financing are lessors’ equity and advance payments. The gradual recovery of basic financial services resulted in UAH 7.4 billion of profit in January-September 2023, of which more than half was generated by the state-owned institution Ukrfinzhytlo, the operator of the eHouse program, whose main income comes from interest payments on government bonds in the capital. Profitability was demonstrated by 72% of financial companies.

The NBU also notes that pawnshops continued to recover in the third quarter. The volume of assets and new loans increased slightly. Pawnshops’ revenues grew slowly, which made it possible to generate profits and improve profitability. Equity has increased by 9% since the beginning of the year due to profits from operations.

According to the regulator, the number of non-banking financial services providers decreased once again in the third quarter. The registry excluded 33 financial companies, eight credit unions, six pawnshops and four insurers. Most of the financial institutions left the market by voluntarily giving up their licenses.

In addition, two financial companies were removed from the register in accordance with the requirements of the Law on Payment Services and entered into the Register of Payment Infrastructure as payment institutions.

In the third quarter, the assets of non-bank financial services increased by 5.2% quarter-on-quarter and by 11.9% year-on-year. Assets grew in all market segments, but most rapidly in financial companies.

The share of non-bank financial institutions in the financial sector assets supervised by the NBU increased by 0.2 pp to 11.1% over the quarter.

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National Bank continues to revoke licenses of some financial companies and credit unions

The National Bank of Ukraine has cancelled licenses for four financial companies and one credit union, and excluded two credit unions from the State Register of Financial Institutions, according to the regulator’s website.
According to the NBU, the decisions of December 12, all licenses of Holastis Financial Company LLC, Maximum Financial Company LLC and Credit Finance Ukraine Financial Company LLC have been annulled.
As reported, on October 19, 2022 the mentioned institutions have been applied sanctions in the form of temporary suspension of licenses to provide financial services due to non-provision of information and documents about the ownership structure requested by the National Bank of Ukraine. As of the moment of taking decision on cancellation of licenses the violations have not been eliminated.
Besides, LLC “FC “Plaza Inves” has its license for provision of financial leasing services revoked due to failure to provide any financial service under this license during 12 months since the day of its issuance.
CC “Ukrainian Oshchad Center” is also excluded from the State Register of financial institutions due to the cancellation of all previous licenses and CC “Elliada” on the basis of its own application, guided by the special procedure during martial law.

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