The state-owned Oschadbank (Kyiv) is preparing for a due diligence by the European Bank for Reconstruction and Development (EBRD) to prepare for a pre-privatization deal, Oschadbank CEO Serhiy Naumov has said.
“The bank is actively negotiating and preparing a pre-privatization deal with the EBRD. Currently, we are completing negotiations on signing a mandate letter and preparing for due diligence,” he told Interfax-Ukraine on Tuesday.
According to Naumov, the bank expects that a bill that was registered in the parliament, aimed at joining Oschadbank to the Deposit Guarantee Fund, will be passed soon. The document will ensure the fulfillment of one of the important conditions for continuing successful cooperation with the EBRD.
As reported, the Ministry of Finance of Ukraine in February 2018, as part of an updated strategy for reforming the public banking sector, planned to gradually include Oschadbank into the Deposit Guarantee Fund system. According to the memorandum with the IMF, concluded in December of the same year, the full state guarantee of deposits of individuals in Oschadbank was supposed to be canceled by the end of 2019. This step will open the way for the EBRD to enter the capital of Oschadbank.
Oschadbank was founded in 1991. Its sole owner is the state. According to the statistics of the National Bank, as of March 1, 2021, Oschadbank ranked second in terms of total assets (UAH 279.702 billion) among 73 banks operating in the country.
State-controlled Oschadbank (Kyiv) issued loans for a total of UAH 2.6 billion in January-May 2021, which is 2.6 times more than in the same period in 2020 (UAH 1.1 billion), the press service of the bank said.
According to the report, over the five months of 2021, the loan portfolio issued by the bank to micro, small and medium-sized businesses increased by UAH 1.2 billion, or 20.7%, to UAH 7 billion.
As noted by the press service, the growth of the portfolio is due, inter alia, to the active participation of Oschadbank in various programs to support entrepreneurship, in particular in the Affordable Loans 5-7-9% state program.
In addition, the number of partnership programs of Oschadbank with manufacturers of equipment and plant protection products has reached 230, the report says.
Oschadbank was founded in 1991. Its sole owner is the state.
According to the statistics of the National Bank, as of March 1, 2021, in terms of total assets (UAH 279.702 billion) Oschadbank ranked second among 73 banks operating in the country.
The single counterparty exposure limit (H7, should be no more than 25%) as of March 1, was violated by Prominvestbank (82.02%), Sberbank (50.23%) and Industrialbank (49.51%), 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 First Investment Bank (52.02%), Unex Bank (28.17%), Megabank (27.56%) and Land Capital Bank (26.75%).
The limit on bank total long open FX position (L13-1, should be no more than 10%) was violated by Oschadbank (129.99%), Prominvestbank (114.57%), PrivatBank (95.74%) and Industrialbank (12.35%).
The limit on bank total short open FX position (L13-2, should be no more than 10%) was violated by Prominvestbank (110.36%).
FIRST INVESTMENT BANK, INDUSTRIALBANK, LAND CAPITAL BANK, MEGABANK, NBU, OSCHADBANK, PRIVATBANK, PROMINVESTBANK, REQUIREMENTS, SBERBANK, UNEX BANK, VIOLATE
State-controlled Oschadbank (Kyiv) in 2020 issued 4,000 car loans for a total of UAH 1.9 billion, which is 11.8% more than in 2019 (UAH 1.7 billion), the press service of has bank has said.
The bank reportedly issues car loans for up to seven years and with a minimum advance payment of 10%.
It is indicated that Oschadbank cooperates with more than 500 dealer centers throughout the country.
According to the bank, among the cars that were purchased on credit from Oschadbank, the favorites in 2020 were Toyota, Mazda, Suzuki, Nissan, Skoda, Hyundai, Kia, Volkswagen, Mercedes, Honda, Subaru, Renault, Peugeot and Fiat.
Oschadbank was founded in 1991. According to the National Bank of Ukraine, as of October 1, 2020, in terms of total assets (UAH 266.29 billion) Oschadbank ranked second among 74 banks operating in the country.
The state-owned Oschadbank, according to preliminary results (without corrections and before the audit), in 2020 received a net profit of UAH 2.8 billion compared to UAH 277 million in 2019, the bank said on Friday.
“Since 2016, the bank has continued to operate profitably. The return on equity [RoE] of the bank at the end of 2020 is 13.8% and significantly exceeds the corresponding result in 2019 [some 1.3%],” the document said.
At the same time, Oschadbank said that the results of 2020 were significantly affected by creating reserves in accordance with international financial reporting standards (IFRS 9), due to negative forecasts for the activities of certain sectors of the economy. “These forecasts are caused by the application of adaptive and full quarantine restrictions in the fight against the coronavirus [COVID-19] pandemic, as well as the current slowdown in business activity,” Oschadbank said.
Over the nine months of 2020, it posted a net profit of UAH 4.74 billion, which is 25 times higher than this indicator for the same period in 2019 (some UAH 189 million). The bank’s net interest income for the three quarters of last year increased by 35.4%, to UAH 5.67 billion, and the net commission income by 8.4%, to UAH 3.24 billion.
According to the report, the net interest income of Oschadbank as a whole for 2020 increased by UAH 2.5 billion, or by 45.4%, to about UAH 8 billion, mainly due to a decrease in interest expenses due to cheaper funding.
The financial institution indicated a significant increase in the fixed-term resource base last year more than UAH 9 billion (10%), including on deposits of individuals UAH 4.9 billion, and on deposits of business entities UAH 4.3 billion.
The loan portfolio for the year decreased by 3%, to UAH 63.2 billion, the press release said.
Among the achievements of last year, Oschadbank singled out a decrease in the level of non-performing loans (loans overdue more than 90 days) from 49% to 24%. During the year, it was possible to restructure loans totaling UAH 16.4 billion, in cases of non-performing loans, the courts issued verdicts in favor of Oschadbank in the amount of UAH 3.9 billion, of which it managed to return UAH 2.8 billion, the financial institution said.
The message also indicates that as of the end of 2020, Oschadbank’s equity capital was UAH 22 billion, and the capital adequacy ratio was 19%, while the National Bank’s standard was 10%.
The financial institution also indicated that in 2020 it paid UAH 3.4 billion in taxes, fees and mandatory payments to the state budget.
Oschadbank was founded in 1991. Its sole owner is the state.
According to the National Bank of Ukraine, as of October 1, 2020, Oschadbank ranked second (UAH 266.29 billion) among 74 banks operating in the country in terms of total assets.
The state-owned Oschadbank (Kyiv) on December 18 attracted UAH 8 billion at the tender of the National Bank of Ukraine (NBU) for 90-day refinancing at 6%, according to the NBU’s website on Monday.
According to the NBU, the regulator also satisfied the applications for refinancing the banks Sich (UAH 250 million), Avangard (UAH 50 million) and Concord (UAH 36.6 million).
According to statistics, in general, starting from April 30, 2020, the NBU held 31 auctions for 90-day refinancing for a total amount of about UAH 45.886 billion. The tenders scheduled for June 5, July 10 and September 11 did not take place due to a lack of bids.
In addition, starting from May 8, the National Bank held eight refinancing tenders for a period of one to five years for a total amount of about UAH 48.53 billion.
According to the schedule of tenders published on the NBU’s website, the next refinancing auction for a period of up to 90 days will take place on December 24, for a period of one to five years on January 15, 2021.
