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.
Oschadbank (Kyiv) is preparing to start selling non-performing loans (NPL) at open auctions starting in the fall of 2020, in particular, the bank is currently identifying and agreeing on the relevant assets for sale, the bank’s press service has told Interfax-Ukraine.
The press service clarified mechanisms for managing problem assets have become more accessible thanks to the decree of the National Bank of Ukraine (NBU) dated April 13, 2020 (No. 49) and the resolution of the Cabinet of Ministers dated April 15, 2020 (No. 281).
It is clarified that these documents determine that the relevant auctions should be held according to the Dutch model (to lower the price) and include the stages of submitting closed price offers and a price offer subject to a number of conditions.
The press service added that such conditions include a ban on the purchase of a lot by the debtor or a person related to him, setting the starting price at the level of the gross book value of the financial asset, and the minimum at a level not less than the minimum economic benefit.
It is noted that the changes adopted by the NBU and the Cabinet of Ministers also determine the procedure for writing off bad assets by state banks. In particular, in accordance with them, Oschadbank in the first half of 2020 wrote off non-performing assets by UAH 22 billion, which led to a decrease in the share of NPL in the total credit portfolio from 55% at the beginning of the year to 48%.
State-owned Oschadbank (Kyiv) is selling a straw pellets plant with an annual capacity of 40,000 tonnes on the OpenMarket platform of state-owned enterprise (SOE) SETAM and 34 items of the plant’s equipment at the starting price of UAH 42.95 million.
The press service of SETAM reported on Wednesday that the auction will be held on January 16.
The bid deposit is UAH 2.15 million, and the bid increment is UAH 429,500.
The press service said that the lot was put up for sale by Oschadbank as voluntary sale.
The plant is located in Kirovohrad region.
Oschadbank was founded in 1991. Its sole owner is the state.
According to the National Bank of Ukraine, as of October 1, 2019, Oschadbank ranked second among 76 banks operating in the country in terms of total assets (UAH 274.609 billion).
Oschadbank (Kyiv) plans to reduce the number of branches from 2,400 to 1,800-2,000 next year and update the remaining ones as part of the continued optimization of the network of branches of the financial institution. “We now have 2,400 branches. According to the plan, about 1,800-2,000 should remain. At the same time, we emphasize that all financial services will be available to customers throughout Ukraine,” Apine Baiba, the head of the supervisory board of Oschadbank, said in an interview with FinClub.
According to her, Oschadbank has already begun optimizing the network by updating more than 650 branches. At the same time, according to the old model, about 1,800 branches are still operating.
“Next year we need to make a choice: reformat them to a new business model or reduce them. And we cannot delay this process, because it affects the bank’s performance,” she said.
She clarified that the financial institution’s specialists are also working on transferring services from the branches to an online mode.
Oschadbank was founded in 1991. Its sole owner is the state.
Oschadbank ranked second among 76 banks operating in the country on October 1, 2019 in terms of total assets (UAH 274.609 billion), according to the National Bank of Ukraine.
