OTP Bank has launched a charity Christmas auction, which will last from December 4 to December 25. All the funds raised will be transferred to the Superhumans Center to provide prosthetics to defenders who lost their limbs in the war and need comprehensive treatment and rehabilitation.
The auction participants will be offered exclusive lots: a Christmas lot from the First Lady, a flag of Ukraine signed by Valeriy Zaluzhny, boxing gloves signed by Vitali Klitschko, Elina Svitolina’s tennis racket, a T-shirt signed by billionaire Buffett, a collection of works by Serhiy Zhadan, as well as commemorative coins, stamp sets, unique Christmas decorations – all signed by celebrities.
All customers of the bank can take part in the charity auction through the OTP Bank UA app.
The full list of lots is available on the website.
“It is through charity that every responsible business today can and should help society. After all, the country, the economy, citizens, and, of course, our defenders need support. This is the second major charity auction held by OTP Bank to raise funds for prosthetics for our heroes,” said Volodymyr Mudryi, CEO of OTP Bank.
“I would like to draw attention to a unique opportunity, a feature that no other bank has: the auction is held online in the OTP Bank UA application. I am sincerely grateful to our development team who managed to implement such a seemingly “useless” feature in terms of banking operations, but such a relevant one for charity, which will help each client both to join the auction and simply donate to Superhumans. The aesthetic and emotional component is also important – those who make a donation will receive a unique author’s “shirt” on their bank card by Christmas. Let’s do a good deed and help our 25 Heroes by December 25!” called Lesia Syrota, OTP Bank Retail Sales Director and team leader of the OTP Bank Helps Ukraine project.
She also emphasized that the lots presented at the auction are unique. “For example, collectible cards are a limited collection: “MOST WANTED. Ukrainian edition”, which cannot be found on sale. Or a flag of Ukraine with the DIU emblem and Kyrylo Budanov’s signature, or a didukh signed by the genius Ada Rogovtseva, a symbol of Christmas in Ukraine. But the most important thing is that the funds raised will be used to provide real help to our soldiers in need of prosthetics. And it is in your power to support Ukrainian heroes,” summarized the project’s team leader.
Superhumans Center is an ultra-modern center for the rehabilitation of adults and children affected by war, established on the basis of the Yuriy Lypa Lviv Regional Hospital for War Veterans and the Repressed in April 2023. The center provides prosthetics, complex reconstructive surgery, rehabilitation and psychological support to Ukrainians who have been injured in the war. The center plans to treat up to 3,000 patients annually.
One of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv), has agreed to restructure its loan agreement with OTP Bank, the grain trader’s press service reported on Facebook.
“We are grateful to the bank for the speed of decision-making and constructive approach in resolving the issue of restructuring the company’s financial obligations in such difficult times for the Ukrainian economy,” said Iryna Levkivska, CFO of the grain trader.
At the same time, Nibulon noted that the addition of another bank with foreign capital to the proposed restructuring terms once again emphasizes the confidence of foreign financial institutions in the company and Ukrainian business in general.
As reported earlier, Nibulon agreed with Kredobank to restructure the terms of the loan agreement, which was extended for six years with a preferential interest rate and deferred repayment of the principal. A similar agreement on loan prolongation for 6 years was reached with Creditwest Bank Ukraine (JSC West Finance and Credit Bank). An agreement on long-term restructuring of financial liabilities was signed with JSB Ukrgasbank.
JV Nibulon LLC was established in 1991. Prior to the Russian military invasion, the grain trader had 27 transshipment terminals and crop reception complexes, a one-time storage capacity of 2.25 million tons of agricultural products, a fleet of 83 vessels (including 23 tugs), and owned the Mykolaiv Shipyard.
“Before the war, Nibulon cultivated 82 thousand hectares of land in 12 regions of Ukraine and exported agricultural products to more than 70 countries.
In 2021, the grain trader exported the highest ever 5.64 million tons of agricultural products, reaching record volumes of supplies to foreign markets in August – 0.7 million tons, in the fourth quarter – 1.88 million tons, and in the second half of the year – 3.71 million tons.
Nibulon’s losses from Russia’s full-scale military invasion have reached $400 million. The grain trader is currently operating at 30% of capacity and has set up a special unit to clear agricultural land of mines.
Net profit of OTP Bank for January-June 2023 amounted to UAH 2 billion 854.46 million compared to net loss of UAH 783.06 million in January-June 2022, according to the unconsolidated semi-annual report of the bank.
According to it, in particular, net profit in the second quarter of this year reached UAH 1 billion 395.28 million, which is 27.1 times higher than the net profit for the same period last year.
It is indicated that net interest income for the first half of the year increased by 46.3% to UAH 4 billion 306.59 million, including in the second quarter the growth amounted to 42.5% to UAH 2 billion 154.61 million.
Meanwhile, net commission income in January-June this year increased by 35.4% to UAH 612.064 million, including in the second quarter – by 55.7% to UAH 290.32 million.
A significant contribution to the improvement of the financial result was made by the reduction of the loss from the reduction of utility in the first half of this year to UAH 314.08 million, while for the same period last year this figure amounted to UAH 3 billion 573.13 million.
Specifically, for the second quarter of 2023, the loss from utility curtailment narrowed to UAH 170.81m compared to UAH 1 billion 364.51m in the second quarter of 2022.
The bank points out that its total profit for the first half of this year reached UAH 3 billion 247.74 million against a loss of UAH 872.35 million for the first half of last year, including a total profit of UAH 1 billion 772.90 million in the second quarter-2023 against a loss of UAH 162.81 million in the second quarter-2022.
According to the report, in January-June this year, the bank’s assets grew by UAH 1.92 billion, reaching UAH 92.93 billion as of June 30.
Such growth is explained by the increase in cash and funds with the NBU from UAH 4.75 billion to UAH 9.67 billion and investments in securities – from UAH 32.85 billion to UAH 37.37 billion, while loans and advances to clients decreased from UAH 29.92 billion to UAH 23.91 billion, and debts of other banks – by UAH 1.2 billion to UAH 20.51 billion.
Customer funds of OTP Bank decreased for the first half of 2023 from UAH 77.73 billion to UAH 76.19 billion, meanwhile the bank’s capital increased from UAH 11.63 billion to UAH 14.87 billion, including retained earnings – from UAH 3.77 billion to UAH 6.62 billion.
OTP Bank, a 100% subsidiary of the Hungarian OTR Bank Plc, was the eighth among 65 Ukrainian banks in terms of total assets (UAH 103.327 billion) at the beginning of June this year. The bank has a network of 72 branches in Ukraine.
The International Finance Corporation (IFC) is launching a EUR20 mln risk-sharing facility for the Ukrainian subsidiaries of Hungary’s OTP Bank: OTP Bank and OTP Leasing, to support small and medium-sized enterprises (SMEs), especially those operating in the agribusiness sector or owned by women.
“IFC assumes half of the risk on a combined EUR40 million portfolio covering key segments of the Ukrainian economy,” the corporation said in a press release on Friday.
It is specified that these will be the first risk-sharing arrangements in Ukraine under the IFC Small Loan Guarantee Program, which is supported by the European Commission and which will help save jobs, provide essential goods and services, restore supply chains, as well as generate export revenues and budget revenues.
IFC recalls that in 2021, SMEs accounted for 99.97% of all enterprises in Ukraine, generated about 60% of gross domestic product (GDP) and employed more than 7 million people. SMEs suffered significant losses in the second half of 2022, and now only 6% of them are doing business at the same levels as before Russia’s full-scale invasion.
“A strong private sector is key to Ukraine’s economic revival. Expanding access to finance for businesses is critical to counteract the macroeconomic instability and supply chain disruptions that are now severely hampering economic activity in the country,” IFC Vice President for Europe, Latin America and the Caribbean Alfonso Garcia Mora was quoted as saying in the release.
He added that IFC aims to ensure access to credit and stimulate innovation as a key prerequisite for Ukraine’s recovery.
As reported, initially IFC from the World Bank Group considered the project of providing partial risk coverage of new financing for Ukrainian OTP Bank and OTP Leasing for EUR60 mln – EUR30 mln for each financial institution, estimating its possible participation in risk coverage up to EUR30 mln.
OTP Bank was the eighth among 65 Ukrainian banks in terms of total assets (103.33 billion UAH) at the beginning of June this year. The Bank has 75 branches in Ukraine.
“OTP Leasing is the largest leasing company in Ukraine with the share of about 45% according to the results of the first quarter of this year. The CEO of OTP Leasing Andrey Pavlushin reported earlier that in the first half of 2023 the company financed Ukrainian clients for UAH 2.2 billion, which is 3-4% more than the indicator of the first half of 2022.
Prometey Group within the framework of the leasing program of OTP Bank (Kyiv) purchased Renault Duster cars for its employees, the company said on Facebook.
“Service vehicles contribute to the effective performance of job duties, which is especially relevant for agronomists in the fields, as well as an integral part of the compensation package and a way to motivate the employee,” Prometey noted.
The total volume of the leasing limit, allocated by OTP Bank for the purchases, is $3 million.
The cars were given to the agronomists of the production enterprises of the company LLC “Ukraina”, LLC “Visla” and LLC “Agro Capital Center”.
Prometey Group provides services in storing, processing and logistics of crops. Before the Russian aggression, the holding owned 34 elevators in the Nikolayev, Kirovograd, Kiev, Khmelnitsky, Zaporizhzhya, Sumy, Odessa, Kherson and Dnepropetrovsk regions.
By the end of 2021, the group planned to receive $45 mln EBITDA, while in 2020 this figure reached $32.6 mln and in 2019 – $30.5 mln.
The net profit of OTP Bank (Kyiv) in January-September 2021 amounted to UAH 2.066 billion, which is 1.4 times more than in the same period in 2020 (UAH 1.5 billion).
According to reports on the bank’s website, its net profit for the third quarter of 2021 decreased by 16.6% from the corresponding indicator a year earlier – to UAH 771 million.
Net interest income of OTP Bank for the nine months increased by 26.9% compared to January-September 2020 – up to UAH 3.34 billion, and net commission income – by 13.2%, to UAH 977 million.
The bank’s assets for three quarters increased by 5% – to UAH 64.5 billion, including loans to customers – by 30.2%, to UAH 35.99 billion, while funds in banks decreased by 5%, to UAH 12.95 billion.
The bank’s liabilities for the reporting period increased by 9.3% – to UAH 54.08 billion, in particular, customer accounts – by 9.6%, to UAH 52.4 billion.
According to reports, OTP-Bank’s equity capital for the first nine months of this year increased by 8.7% – up to UAH 10.4 billion, while charter capital remained at the level of UAH 6.186 billion.
OTP Bank is the flagship of the OTP banking group, registered by the NBU, which also includes AMC OTP Capital LLC and OTP Leasing LLC.
According to the National Bank of Ukraine, as of September 1, 2021, in terms of total assets (UAH 65.765 billion) OTP Bank ranked ninth among 72 banks operating in the country.
