Business news from Ukraine

National Bank has released rating of top 20 insurers in Ukraine

The leaders of the Ukrainian insurance market in terms of collected net insurance premiums in January-September 2023 were: ARKS Insurance Company (UAH 2.378 billion), TAS Insurance Group (UAH 2.601 billion) and Unica Insurance Company (UAH 1.984 billion) (all based in Kyiv).

No. Name of IC Net premiums Growth rate Written premiums Growth rate Assets Reserves

1 ARX 2378 +6.8% 2760 +21.5% 5455 2838

2 TAS 2601 +54.7% 2542 +47.7% 3696 2486

3 UNIQ 1984 +9.4% 2381 +23.8% 4557 2114

4 VUSO 1693 +86.2% 2005 +78% 1726 1087

5 USG 1632 +17.2% 2243 -1.2% 3767 2312

6 INGO 1466 +34.6% 1993 +64.9% 3527 1889

7 Arsenal Insurance 1323 +5.3% 1599 +42.3 2383 1602

8 Universalna 1212 +48.3% 1463 +54.7% 2062 1121

9 PZU Ukraine 1109 +33.1% 1314 +42% 2065 1394

10 Oranta 927.8 +16.2% 1100 +29.6 1535 980.3

11 Guardian 844.5 +57.2% 1010 +60.5% 996.3 699.3

12 Knyazha VIG 825.5 +40.7% 1464 +68.9% 1758 1382

13 Premier Garant Profi 620.4 +26.9 617.5 +25.6% 180.2 19.7

14 Persha 487.4 +59.3% 599.4 +47.7% 926.9 639.9

15 Express Insurance 468.5 +12.5% 511.1 +68.5% 715 360.1

16 Colonnade Ukraine 355.1 +39% 450.2 65.4% 863 337.7

17 Euroins Ukraine 321.3 +9.3% 408 +22.1 1059 647.5

18 Alfa Garant 298.3 +24.2% 330.9 +37.6% 348.3 294

19 Oberig 293 +47.8% 275.1 +30.7% 278.3 186.8

20 UPSC 282.4 -63.9% 359.7 +0.2% 690.1 267

, ,

National Bank has published rating of most profitable banks in Ukraine

In the third quarter of 2023, state-owned PrivatBank once again topped the list of banks with the highest net profit with UAH 13 billion 623.5 million, followed by two other state-owned banks: Oschadbank with UAH 7 billion 338.2 million and the nationalized Sens-Bank with UAH 3 billion 440.5 million.

According to the data published by the National Bank of Ukraine on its website, the top five banks with the highest net profit in the third quarter also include two banks with foreign capital: Raiffeisen Bank – UAH 3 billion 17.1 million and Ukrsibbank – UAH 2 billion 98.9 million.

The second five banks were state-owned: the private Ukrainian FUIB – UAH 2 billion 4.4 million, the foreign subsidiary of OTP Bank – UAH 1 billion 893.4 million, the state-owned Ukreximbank – UAH 1 billion 619.2 million, and two other banks with foreign capital: Citibank – UAH 1 billion 469.7 million and Credit Agricole Bank – UAH 1 billion 299.3 million.

Universal Bank (mono) made almost the same net profit in July-September of this year – UAH 1 billion 294.4 million, while Kredobank, which follows, made a much smaller profit of UAH 594.6 million.

Two other banks made profits of over UAH 300 million in the third quarter: A-Bank – UAH 355.2 million and Ukrgasbank – UAH 325.0 million.

Of these 14 banks, only four have completed their reserves: Sense – UAH 548.0 million, while City, Raif and Credit Agricole – from UAH 30 million to UAH 20 million, while FUIB disbanded them by UAH 1 billion 413.4 million, Mono – UAH 1 billion 136.6 million, OTP, A-Bank and Ukrgas – from UAH 555 million to UAH 510 million.

The list of 7 unprofitable banks in the third quarter was headed by First Investment Bank of the sanctioned shareholders with a loss of UAH 33.0 million, while Credit-Dnipro and Privex-Bank also suffered similar losses of UAH 29.8 million and UAH 27.5 million, respectively.

Overall, in the third quarter, the net profit of 63 solvent banks amounted to UAH 42.33 billion, with provisions released by UAH 5 billion and total assets increasing by UAH 87.25 billion.

The three most profitable state-owned banks were the leaders in terms of asset growth: Privat – UAH 36.84 billion, Oschad – UAH 18.26 billion, and Sens – UAH 11.36 billion. This allowed Sens to return to the top ten banks by assets, from which it had fallen in June before the nationalization, and immediately to 8th place.

In the third quarter, Ukrexim’s assets decreased by UAH 15.65 billion, Pivdennyi’s by UAH 6.99 billion, and Ukrgas’s by UAH 1.54 billion, and 23 banks in total showed a decline in assets.

In the third quarter, banks increased their portfolio of government bonds by UAH 23.56 billion, with City – UAH 4.61 billion and Ukrgas – UAH 4.48 billion, followed by TAScombank, FUIB and IIB – from UAH 2.5 billion to UAH 2.1 billion.

In July-September, Ukrexim reduced its investments in domestic government bonds the most – UAH 2.45 billion, Sens – UAH 1.24 billion, Privat – UAH 0.7 billion, and First Investment Bank – UAH 0.48 billion.

Overall, PrivatBank remained the most profitable bank by a wide margin in the first nine months of this year, with UAH 43.37 billion, or 39.5% of the banking system’s net profit for the period.

In January-September, Oschad received UAH 14.18 billion in net profit, Raif – UAH 6.14 billion, FUIB – UAH 5.68 billion, Ukrsibbank – UAH 5.66 billion, Sens – UAH 5.58 billion, OTP Bank – UAH 4.75 billion, City – UAH 4.23 billion, and Ukrexim – UAH 3.60 billion.

Among the 12 banks whose net profit for the first nine months exceeded UAH 2 billion were Ukrgas – UAH 2.92 billion, Universal (mono) – UAH 2.86 billion, and Credit Agricole – UAH 2.29 billion.

, ,

War in Ukraine has destroyed demand for foreign currency lending – National Bank

Russia’s full-scale invasion of Ukraine has virtually eliminated the demand for foreign currency loans, contributing to a reorientation to lending in the national currency, which is a good indicator for the economy, according to Pervin Dadashova, director of the NBU’s Financial Stability Department.
“Hryvnia lending prevails, and in general, in principle, the hryvnia is more attractive for lending than foreign currency. This is very important, and I think that this love for lending in hryvnia should continue,” she said at a discussion held by the Center for Economic Strategies (CES).
Dadashova noted that earlier the main motivation for foreign currency lending was lower interest rates on such loans, which led to problems in the absence of real needs and revenues in foreign currency. According to her, the risks of foreign currency lending, which increased during the war, have sharply reduced business interest in the dumb
The Director of the NBU’s Financial Stability Department noted that the loan portfolio has recently stabilized and returned to a slight increase, and now banks are faced with the task of compensating for its loss during the war, which, according to various metrics, amounted to about 15%.
“Now the quality of the loan portfolio is absolutely normal, it is even better than before the war. That is, banks are not losing as much credit risk as they did a few months ago,” the expert emphasized.
She clarified that the small growth in the loan portfolio so far is largely due to the growth under government support programs.
“However, a greater openness to new lending is already noticeable, including in our surveys,” Dadashova noted.
Among other trends, she noted an increase in the share of small and medium-sized businesses (SMEs) in the loan portfolio to more than 50%.
“A significant part of them belongs to business groups, so it is not a pure small business, it is still a big business, but it is structured in a certain way. But in the total portfolio, 15% of loans are granted to debtors who do not belong to business groups,” the expert said, emphasizing that they are a “good engine” for market lending.


National Bank fines insurance broker Grand Insur

The National Bank of Ukraine has fined Insurance Broker Grand Insur LLC (Odesa) UAH 51 thousand for violating the requirements in the field of financial monitoring.
According to the regulator’s website, the fine was imposed for violation of the requirements of clause 5, p. II of Regulation #140 and clauses 12, 13 of the Annex to Regulation #140 in terms of failure to submit reports to the National Bank on prevention and counteraction.

, ,

National Bank has allowed banks to set their own non-cash currency purchase/sale rates

Starting from October 3, banks that have been able to buy and sell foreign currency at the request of their clients only within the official exchange rate of the National Bank of Ukraine +/- 1% may set it independently without this restriction.
The relevant provision is enshrined in the NBU Board Resolution No. 121 of October 2 on the transition to a regime of managed exchange rate flexibility, which amended the “military” NBU Board Resolution No. 18 of February 24, 2022.
“You read our amendments to Resolution No. 18 correctly: that is, there is no peg plus +1% now,” NBU Deputy Governor Yuriy Heletiy confirmed at a briefing on Monday.

Starting from September 16, National Bank of Ukraine has allowed additional sales of cash currency in amount of its balances as of April 13, 2022

The National Bank of Ukraine has allowed banks and non-bank financial institutions to sell additional cash currency in the amount of their balances as of April 13, 2022, starting from September 16, which it believes will help level the difference between the cash and non-cash exchange rates.

“This helps to increase the stability of the foreign exchange market and stabilize exchange rate expectations,” the NBU said in a post on its website on Friday evening, without specifying how much additional supply it was talking about.

The NBU reminded that currently banks and non-bank financial institutions can sell cash currency in the amount of its purchase exceeding the volume of its sales for the period from April 13, 2022, plus 120% of the volume of non-cash currency purchases from individuals from April 13, 2022.

It is noted that the NBU also allowed enterprises with a 100% state share to transfer funds abroad in order to fulfill obligations to a non-resident under a loan or credit that has been restructured on terms agreed by the government. In addition, other payments related to the servicing of such restructured obligations are allowed.

“Such changes will contribute to the proper completion of the restructuring of external debt by state-owned institutions,” the regulator said.

Another easing, according to the release, was the expansion of the list of medical services for which the population can make cross-border transfers.

“Rehabilitation services, as well as services for the purchase of prostheses and their components, installation, maintenance and repair of prostheses, have been added to the relevant list. This is important for restoring the health of people with disabilities, including combatants in need of prosthetics,” the NBU said.

The above-mentioned mitigations were introduced by the Resolution of the Board of the National Bank No. 115 dated September 15, 2023, the release said.