In November, the National Bank of Ukraine (NBU) fined state-owned PrivatBank, Alliance Bank and Asvobank (all based in Kyiv) for violating the anti-money laundering laws for a total of UAH 27.5 million, according to a press release from the regulator. According to the release, Privat was fined UAH 10 million, Alliance – UAH 15.1 million, and Asvibank – UAH 2.5 million.
As reported with reference to market participants, Ukrainian banks are planning to sign a joint memorandum next week, which provides for the introduction of unified market practices and approaches to customer due diligence and monitoring of financial transactions on customer accounts.
According to them, the memorandum is expected to provide for a gradual reduction of the monthly transaction limit, after which, in the absence of verified income, enhanced financial monitoring will be carried out.
For the fifth time, PrivatBank has put up for auction on the Openmarket electronic platform (SE SETAM of the Ministry of Justice of Ukraine) the shopping center “Pryozernyi” in Dnipro, reducing the starting price to UAH 289.3 million (including VAT).
According to the press service of PrivatBank, the lot includes a six-storey shopping center with an area of 32.4 thousand square meters. The facility’s infrastructure also includes an underground parking lot with an equipped shelter.
According to the announcement, the lot also includes 12 land plots. The winning bidder is also obliged to purchase fixed assets worth UAH 2.2 million.
Built in 2009, the Priozerny shopping center is located in the city center near the Central Market and the railway station. The facility includes shopping galleries, office and warehouse space, entertainment and sports areas. The shopping center’s infrastructure includes an underground parking lot for 100 cars and a surface parking lot for 40 cars.
The auction is scheduled for December 20. The guarantee deposit is UAH 14.4 million.
The starting price of the property at the first auction was UAH 430 million.
As reported, in April 2024, the Supreme Court finally confirmed PrivatBank’s ownership of the Priozerny shopping center, upholding the decisions of the courts of first and appellate instances on the legality of the acquisition of ownership of the facility and dismissing the cassation appeal of Mission-1, which the bank associates with its former owners.
Earlier in 2016, PrivatBank acquired ownership of the shopping center as a loan repayment, at which time its value was over UAH 778 million.
Then, in 2021, the former owner of Priozerny, Mission-1 LLC, filed a lawsuit to challenge the state bank’s ownership of the shopping center and return it to its ownership.
The Commercial Court of Dnipropetrovs’k region dismissed the company’s claim, and later, PrivatBank defended the legitimacy of its ownership of the Priozerny shopping center in the Central Economic Court of Appeal (Dnipro).
The net profit of state-owned PrivatBank (Kyiv), the largest Ukrainian bank, amounted to UAH 48.35 billion in January-September 2024, which is 11.5% higher than in the same period of the previous year.
“According to the results of the first nine months of 2024, the bank’s pre-tax profit reached UAH 64.01 billion, and net profit amounted to UAH 48.35 billion (+11.5% yoy),” the bank said in a statement on Thursday.
According to it, since the beginning of this year, the bank’s loan portfolio has increased by 18.4%, exceeding UAH 108.99 billion as of the end of September, while total assets increased by 5.4% to UAH 722.17 billion, and deposits and balances on customer accounts by 4% to UAH 572.04 billion.
It was specified that the number of active private clients decreased from 18.35 million to 18.3 million in the first nine months of this year, of which 13.51 million were Privat24 users, while the number of business clients increased from 875 thousand to 890 thousand.
In addition, in January-September, PrivatBank reduced the number of branches by 22 to 1173, ATMs by 20 to 6860, terminals by 62 to 10411, and the number of its POS terminals amounted to 311.17 thousand at the beginning of October.
Taking into account the previously published data, the bank’s net profit in the third quarter of 2024 amounted to UAH 17.75 billion, which is 30.3% higher than in the third quarter of 2023.
“During the third quarter, the bank maintained the achieved level of business activity, despite the pressure of electricity shortages on households and businesses,” the financial institution said in a press release.
It notes that the high quality of the loan portfolio results in almost zero expenses for the formation of additional provisions to cover credit risks. Operating expenses remain under management control: in the first nine months of 2024, they increased by only 4.8% compared to the same period last year, which is significantly lower than the inflation rate.
It was also clarified that since the beginning of the year, PrivatBank has donated UAH 167.06 million to charity, aimed at helping hospitals and medical institutions, strengthening the country’s defense capabilities, social projects, and helping employees.
For the third time, PrivatBank has put up for auction on the Openmarket electronic platform (SE SETAM of the Ministry of Justice of Ukraine) the Priozerny shopping center in Dnipro for UAH 352.7 million (including VAT).
According to the press service of SETAM, the lot includes a six-story shopping center with an area of 32.4 thousand square meters and 12 land plots.
The winning bidder is also obliged to purchase fixed assets worth UAH 2.2 million.
Built in 2009, Priozerny shopping center is located in the city center near the Central Market and the railway station. The facility includes shopping galleries, office and warehouse space, entertainment and sports areas. The shopping center’s infrastructure includes an underground parking lot for 100 cars and a surface parking lot for 40 cars.
The auction is scheduled for October 16. The guarantee fee is UAH 17.6 million.
As reported, in April 2024, the Supreme Court finally confirmed PrivatBank’s ownership of the Priozerny shopping center, upholding the decisions of the courts of first and appellate instances on the legality of the acquisition of ownership of the facility and dismissing the cassation appeal of Mission-1, which the bank associates with its former owners.
Earlier in 2016, PrivatBank acquired ownership of the shopping center as a loan repayment, at which time its value was over UAH 778 million.
In 2021, the former owner of Priozerny, Mission-1 LLC, filed a lawsuit to challenge the state bank’s ownership of the shopping center and return it to its ownership.
The Commercial Court of Dnipropetrovska oblast dismissed the company’s claim, and later, PrivatBank defended the legitimacy of its ownership of the shopping center in the Central Commercial Court of Appeal (Dnipro).
In July 2024, state-owned PrivatBank reduced its net profit by 2.6% compared to June to UAH 6.25 billion, and with this indicator topped the country’s five most profitable banks in July, according to the National Bank of Ukraine (NBU) on its website.
According to the data, Privat is followed by state-owned Oschadbank, which earned UAH 2.18 billion in net profit in July, up from UAH 0.07 billion in June.
Universal Bank (mono) rounded out the top three, increasing its profit almost eightfold compared to June to UAH 0.84 billion.
It is followed by two banks with foreign capital: Credit Agricole and Raiffeisen Bank with UAH 0.62 billion (+28.3% compared to June) and UAH 0.56 billion (+78%) respectively.
The second five most profitable banks in July were led by Ukrsibbank, which increased its net profit by 10.1% to UAH 0.55 billion. It also included: City Bank – UAH 0.54 billion, Ukrgasbank – UAH 0.43 billion, FUIB – UAH 0.42 billion, and Ukreximbank – UAH 0.38 billion.
In July 2024, three other banks made a net profit of over UAH 100 million: OTP Bank – UAH 365.3 million, Pivdenny Bank – UAH 340.7 million, and Kredobank – UAH 193.5 million.
At the same time, the three most unprofitable banks in July were Sens Bank with a net loss of UAH 65.67 million, Alliance Bank – UAH 17.81 million, and Pravex Bank – UAH 13.34 million.
The list of the most profitable banks for the first seven months of this year is also headed by Privat with a large margin – UAH 37.16 billion, followed by Oschadbank with UAH 11.00 billion.
Next in a tighter group are Raif with UAH 4.87 billion, Ukrexim with UAH 4.74 billion, FUIB with UAH 4.24 billion, Credit Agricole with UAH 4.22 billion, Ukrsib with UAH 3.97 billion, and Ukrgas with UAH 3.73 billion.
Six other banks also earned a net profit of more than UAH 1 billion in the first seven months of this year: Mono – UAH 3.19 billion, OTP – UAH 3.00 billion, City – UAH 2.73 billion, Sense – UAH 2.21 billion, Pivdenny – UAH 1.61 billion, and Credo – UAH 1.16 billion.
A-Bank fell just short of this milestone with a profit of UAH 0.92 billion, while ProCredit Bank, which followed it, had a profit of UAH 0.60 billion.
As for unprofitable banks, in January-July, there were 8 out of 62 in Ukraine. Pravex Bank had the worst result at UAH 95.79 billion, followed by Industrialbank at UAH 39.00 billion.
First Investbank and Motor-Bank, which were taken over by the state from their sanctioned owners following a court decision, had a net loss of UAH 25.69 million and UAH 14.69 million, respectively, for the first 7 months of the year.
Overall, in January-July 2024, the net profit of banks increased to UAH 93.62 billion, including private banks – to UAH 13.39 billion. In July, it increased to UAH 14.58 billion from UAH 11.07 billion in June.
Slobozhanshchyna Agro, a subsidiary of IMC, has raised UAH 100 million under the government’s soft loan program Affordable Loans 5-7-9% from PrivatBank (Kyiv).
“Since the beginning of the war, financing agricultural production has become a priority for us. The bank systematically supports and will continue to support Ukrainian agribusinesses operating in the frontline and de-occupied regions,” Yevhen Zaigraev, Board Member for Corporate Business and SMEs, said in a press release.
It is noted that the financing will allow Slobozhanshchyna Agro to maintain its business activities in the frontline region of the country for a year.
Zaigraiev added that the company continues to operate in the Sumy region, where there are still high military risks.
“Thanks to this, the company received a more favorable interest rate under the guarantees of the CMU (Cabinet of Ministers of Ukraine – IF-U),” the release said.
“MK is an integrated group of companies operating in Sumy, Poltava and Chernihiv regions (north and center of Ukraine) in the crop production, elevators and warehouses segments. The company’s land bank is about 120 thousand hectares in Poltava, Chernihiv and Sumy regions, with storage capacity of 554 thousand tons for the 2023 harvest of 1.002 million tons.
This year, the company purchased 140 Ukrainian-made railcars, and in early August, for the first time, it shipped its products to ports in its own grain cars. According to Privat, the company ships 60-70 thousand tons of grain to ports by rail every month.
In the first half of 2024, IMC Agro Holding increased its net profit by 2.4 times year-on-year to $21.52 million, while its revenue increased by 51% to $108.32 million, while the share of exports decreased slightly to 81.3% from 81.9% a year earlier.
According to the National Bank of Ukraine, as of August 1 this year, PrivatBank ranked first in terms of total assets (UAH 895.26 billion) among 62 banks operating in the country. The financial institution’s net profit last year amounted to UAH 37.76 billion.
