JSC CB PrivatBank has put up for sale through the OpenMarket electronic trading system (SE SETAM of the Ministry of Justice of Ukraine) the shopping center “Pryozernyi” in Dnipro. The sale of one of the largest and most attractive shopping centers for retail development in Dnipro is part of the bank’s program of selling non-operating real estate under a transparent and open bidding procedure.
Built in 2009, Priozernyi shopping center is the third largest shopping center in Dnipro (over 32 thousand square meters) and has six above-ground floors and an underground floor with a parking lot and a shelter for visitors during air raids.
“PrivatBank has successfully defended in court the ownership of the Priozerny shopping center, which was transferred to the bank’s balance sheet as collateral for loans before the bank’s nationalization,” says Olena Yevtushenko, Head of Real Estate Management at PrivatBank. – “Retail is not a banking business, so today we are offering a very interesting object at an open auction that can become one of the leaders in the market of retail and entertainment services.
“SETAM has successful experience in selling similar lots from the balance sheets of banks across Ukraine, including PrivatBank. For our part, we guarantee open access to all those wishing to participate (citizens and business representatives) in the auction and an open bidding process,” said Oleksandr Mamro, CEO of SETAM.
The unique advantages of Priozerny shopping center are its convenient location in the city center near the Central Market and railway stations. Also, Priozerny shopping center is currently the only shopping center in the city that has both retail space, office and warehouse space, as well as entertainment and sports areas with swimming pools and a SPA zone.
Depending on the format and size of the outlets, the shopping center can have up to 100 tenants. The shopping center has six elevators and four escalators, a central entrance equipped with a ramp, underground parking for 100 cars, as well as a ground parking lot with 40 parking spaces.
The starting price of the lot is UAH 430,060,700.00 including VAT. The date of the electronic auction is August 28, 2024 (lot No. 556963), the guarantee fee for participation: 5% of the initial sale price of the property (UAH 21,503,035), which will be credited to the sale price.
The lot consists of a shopping center with a total area of 32,408.7 sq.m. located at 1 Maidan Ozernyi (Bobrova) Str., Dnipro, and 12 land plots. In addition to the lot price, the successful bidder is obliged to purchase fixed assets worth UAH 2.2 million including VAT.
Detailed information and conditions of participation in the auction are available here.
In January-June 2024, state-owned PrivatBank (Kyiv) earned UAH 30.6 billion in net profit, up 2.7%, or UAH 0.8 billion, compared to the same period last year, the financial institution said on Wednesday.
“At the same time, the bank’s financial result before tax amounted to UAH 40.7 billion, which is 11% more than in the first half of 2023,” the state bank said.
According to data published on Privat’s website, income tax for the six months amounted to UAH 10.1 billion, compared to UAH 6.9 billion for the same period in 2023, when the rate was 18%, compared to 25% this year.
The bank’s total assets for the first half of the year increased by 1.5% to UAH 692.5 billion.
It is noted that the net loan portfolio of individuals and legal entities of the bank exceeded UAH 102.7 billion, which is 34%, or UAH 26.2 billion, more than last year and 11.6% more than at the beginning of the year.
“Since the beginning of the year, we have been actively lending not only to individuals and micro, small and medium-sized businesses, but also developing loan programs for corporate clients and large businesses in all regions of the country. We pay special attention to enterprises in the frontline regions, as well as to financing households and businesses under alternative energy generation programs,” Gerhard Bösch, Chairman of the Board of PrivatBank, said in a release.
According to the press service, deposits and balances on customer accounts amounted to UAH 681.1 billion, up from UAH 550 billion at the beginning of the year, with growth of UAH 30 billion, or 8%, in hryvnia accounts.
As of the end of the first half of 2024, PrivatBank’s active customer base amounted to 18.3 million individuals and 880 thousand legal entities, which is 50 thousand and 5 thousand less than at the beginning of the year, respectively. The number of Privat24 users reached 13.5 million.
Privat’s network includes 1184 branches (1199 at the beginning of the year), 6854 ATMs (6880), 10,419 thousand terminals (10,473 thousand) and more than 308.6 thousand POS terminals, according to the release.
As reported, at the end of June, it became known that Boesch was dismissed from the post of PrivatBank’s CEO after three years of work. The Supervisory Board of the financial institution has already started the selection process for the vacant position.
The European Bank for Reconstruction and Development (EBRD) plans to provide EUR140 million in guarantee financing to state-owned PrivatBank (Kyiv), which will cover up to 50% of the credit risk on new loans of EUR400 million in equivalent.
According to information on the bank’s website on Thursday, its board of directors intends to consider this project on July 24, 2024.
It is specified that the guarantee funding will be provided to PrivatBank in two equal tranches, each of which will provide partial coverage of risks under new loans worth EUR 200 million, while only one tranche has been agreed upon so far.
The project also provides for a sub-limit of up to EUR 60 million to finance long-term investments by micro, small and medium-sized enterprises (MSMEs) to modernize technologies and equipment in accordance with EU standards, including investments in sustainable and green technologies (70% of the sub-limit), thereby increasing the competitiveness of enterprises.
It is noted that eligible sub-borrowers will also receive EU-funded technical assistance and grant support in the form of investment incentives after the completion of investment projects.
According to the EBRD website, the financing is intended primarily to support Ukrainian companies in primary and secondary agriculture, as well as other critical sectors necessary to ensure the country’s energy security.
“At the same time, priority will be given to MSMEs and corporate borrowers investing in projects that increase energy security and efficiency in Ukraine,” the release says.
As reported, EBRD Vice President Matteo Patrone and PrivatBank CEO Gerhard Bösch signed a letter of intent to start working on a risk-sharing agreement during the Ukraine Recovery Conference in Berlin on June 11-12.
According to the National Bank of Ukraine, as of May 1, 2024, PrivatBank ranked 1st in terms of assets (UAH 857.00 billion) among 63 banks operating in the country. The financial institution’s net profit last year amounted to UAH 37.8 billion. The EBRD notes that the state-owned bank’s network currently includes 1,200 branches across the country, 6,800 ATMs and 1,040 terminals.
State-owned PrivatBank, Oschadbank and Ukreximbank have purchased the largest amount of domestic government bonds since the beginning of Russia’s full-scale invasion and have become market leaders in terms of government bonds with UAH 316 billion, UAH 154.2 billion and UAH 130.5 billion, respectively.
“PrivatBank’s clients mainly invest in hryvnia domestic government bonds (64.5%) and US dollar bonds (33.7%). At the same time, 80% of clients reinvest in securities of the Ministry of Finance when redeeming government bonds,” the financial institution’s press service said.
PrivatBank noted that every third hryvnia of the 1 trillion hryvnia raised in government bonds since the beginning of the full-scale invasion of Russia was invested by the bank or its clients.
In its turn, Oschadbank clarified that UAH 154.23 billion in equivalent of the total portfolio of domestic government bonds, UAH 26.6 billion, was purchased since the beginning of 2024, UAH 65.29 billion in 2023, and UAH 62.34 billion in 2022.
The top three are followed by the state-owned Ukrgasbank, which purchased the equivalent of UAH 89.3 billion of domestic government bonds in the primary market.
Among the top ten banks in the country in terms of assets, FUIB and Sens Bank also published data on investments in domestic government bonds.
Thus, according to the information on FUIB’s website, the amount of investments of more than 2 thousand clients of the bank (both individuals and legal entities) in government bonds since the beginning of the full-scale invasion has reached 1.6 billion in national currency, while foreign currency portfolios amounted to more than $50.5 million and EUR10.5 million, respectively.
The press service of Sens Bank indicates that as of today, the financial institution’s portfolio of government bonds held by individual investors is over UAH 8.1 billion, which “corresponds to about 13% of the total portfolio of government bonds held by individual investors in the country.”
“(…) our bank’s clients, both individuals and business representatives, continue to actively invest in securities. Thus, in April this year alone, our clients purchased government bonds worth UAH 1.87 billion, of which UAH 1.6 billion were military bonds,” the bank noted.
Sens emphasized that clients prefer hryvnia bonds, as the bank’s information shows that in April this year, 53% of consumers preferred them.
Other banks from the “Big Ten” by assets as of April 1 this year – Raiffeisen, Ukrsibbank, Universal Bank (mono) and Credit Agricole – did not publish information on the volume of purchases of government bonds since the beginning of February 24, 2022 on their websites at the time of the publication of this material.
At the same time, Kredobank, the 14th largest bank by assets, reported that its clients have invested more than UAH 3 billion in government bonds since the beginning of the full-scale Russian aggression, and more than 70% of this amount was invested in military bonds.
Kredobank reminded that it was one of the first banks to cancel brokerage fees for the purchase of military bonds after the war started and reduced the minimum investment amount in government securities to UAH 50 thousand.
“The main preferences of Kredobank’s customers for 2024 are short-term, up to 1 year, military government bonds in national and foreign currencies. We also observe that after the maturity of the bonds, more than 50% of customers re-invest their funds, doubling the amount,” said Serhii Kucheriavyi, Director of the Liquidity and Securities Department of the bank.
As reported, the Ministry of Finance managed to lower interest rates by another 0.1-0.27 percentage points (p.p.) at auctions for the placement of domestic government bonds on Tuesday, May 21, bringing the total decrease to 0.92-1.37 p.p. after the National Bank cut the discount rate from 14.5% to 13.5% per annum on April 26.
According to the website of the Ministry of Finance, the cut-off rate for one-year securities decreased from 15.15% to 15.05%, for two-year securities – from 16.2% to 16.08%, and for three-year securities – from 17.2% to 16.93%.
State-owned PrivatBank (Kyiv) will increase to UAH 360 million the financing of the Viliya group of agrarian enterprises to expand production, increase exports, increase the fleet of agricultural machinery and equipment, PrivatBank’s press service said on Thursday.
“The bank has decided to increase the volume of lending to the largest agribusiness in Volyn – the group of companies “Vilia”, which according to Forbes rating this year entered the TOP-20 of the most effective agro-companies in the country. The increase in the volume of financing by the bank up to UAH 360 million will allow the company in 2024 to ensure the acquisition of fixed assets to expand production and export capacity of agricultural products in the region, increase the fleet of agricultural machinery and equipment”, – said a member of the Board of Directors Yevgeniy Zagraev.
According to his information, PrivatBank since the beginning of the war has identified the financing of agro-production as a top priority and has become one of the leaders in terms of lending to agrarians.
“We continue to support agribusiness and today we expand investments in leading modern agribusinesses, such as the enterprises of SC “Vilia”, striking the dynamics of development and modernization of business,” – said Zagraev.
According to PrivatBank, since the beginning of the war SC “Vilia” has increased investments in the construction of a grain terminal, increased the volume of products processing due to the launch of a flour milling complex. During 2024, the company plans to invest more than UAH 1.5 billion in modernization of production and export capacities.
In addition, during the two years of the war “Vilia” increased the fleet of grain trucks by 25%, and the volume of grain storage in elevators – by 20%. In 2025, the agroholding plans to resume the construction of a dairy farm and is considering a project to create the latest pig farms.
The group of companies “Vilia” unites a number of enterprises of Volyn and Rivne regions, which cultivate 42 thousand hectares of land, specialize in crop production, storage of grain, oilseed and legume crops, grain trading, flour and granulated flour production, animal husbandry. Its parent company Volyn-Zerno-Product LLC began operations in 2001. Vilia Group of Companies includes seven elevators in Volyn and Rivne regions, Lutsk Feed Mill LLC, Mlynivsky Feed Mill LLC, a seed factory, a number of warehouses, and its own railroad line. The beneficiary of the company is Yevhen Dudka.
According to the National Bank of Ukraine, as of September 1, 2023, PrivatBank ranked first in terms of assets (UAH 782.31 billion) among 64 banks operating in the country and second in terms of the number of branches in the country (1131).
The amount of income tax and dividends for 2023 that state-owned PrivatBank (Kyiv) transferred to the state budget amounted to almost UAH 50 billion, Yulia Metzger, a member of the bank’s Supervisory Board, said at the International Financial Club BANKIR conference.
“Already in February this year, the Supervisory Board decided that the bank had transferred to the budget an advance payment of dividends and income tax based on the results of the previous year in the amount of almost UAH 50 billion,” she said.
According to the NBU, PrivatBank’s pre-tax profit for 2023 amounted to UAH 72.77 billion, and income tax expenses amounted to UAH 35 billion. According to the government’s decision, 80% (UAH 30.2 billion) of the remaining net profit of UAH 37.76 billion should be used to pay dividends.
As reported, on February 12, Privat transferred the amount of income tax and the first tranche of dividends for 2023 in the amount of UAH 26 billion to the state budget in advance.
PrivatBank is the largest bank in the country, with total assets of UAH 848.64 billion as of March 1, 2024, or 25.9% of the assets of all 63 banks.
