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.
State-owned PrivatBank ended 2023 with UAH 37.77 billion in net profit, which is UAH 7.57 billion, or 25%, higher than the financial result of 2022, the financial institution said in a press release on Wednesday.
Pre-tax profit increased 2.1 times, or by UAH 38.09 billion, to UAH 72.77 billion.
According to the release, PrivatBank’s assets last year, after growing by 34.9% in 2022, increased by another 26.6% to UAH 685.1 billion, ensuring its leadership in this indicator in the market.
In 2023, the bank’s net interest income increased by UAH 19.7 billion, or 49.4%, to UAH 59.6 billion, of which UAH 3 billion was due to the favorable interest rate policy of the National Bank of Ukraine (NBU) in 2023,
At the same time, net fee and commission income increased by 20% to UAH 24.4 billion.
“In the context of business growth, operating expenses grew by only 8%, remaining under close management control,” the release said.
According to the state-owned bank, the net portfolio of loans to households in 2023 increased by 39% to more than UAH 60 billion, while the volume of loans to businesses increased by 23% to more than UAH 30 billion.
PrivatBank notes a gradual improvement in the quality of the loan portfolio, which leads to significant savings in provisioning costs. In particular, according to the bank, expenses under this item in 2023 decreased by UAH 11.8 billion compared to 2022.
There has also been an increase in deposits in the state bank of both individuals and enterprises – the volume of deposits increased by 18%, or UAH 85 billion, compared to the level of 2022. According to the state-owned bank, deposits and balances on correspondent accounts of clients reached UAH 550 billion in 2023. According to the submitted materials, Privat has 18.35 million active individual clients and 875 thousand business clients.
It is noted that Privat paid UAH 26.8 billion in income tax to the state budget (including UAH 8.2 billion in prepayments in 2021-2022, together with dividends), while in 2021-2022 the financial institution paid UAH 8.5 billion.
“The majority of the bank’s net profit will be used to pay dividends, i.e. also to the state budget, according to the decision of the shareholder represented by the Ministry of Finance,” the statement emphasizes.
State-owned PrivatBank (Kyiv) offers professional market participants through the OpenMarket platform (SE SETAM) to purchase at a Dutch auction (with a price reduction) the rights to claim a loan portfolio of more than 80 thousand consumer loans at a starting price of UAH 501.4 million.
“This portfolio includes more than 80 thousand unsecured consumer loans granted to individuals, which were recognized as uncollectible and written off against provisions. The portfolio for sale excludes loans for which the debtors are mobilized servicemen – according to information available to PrivatBank,” the press service of the state bank informs.
It is noted that the rights of claim on such a portfolio include only the loan principal and accrued interest.
The sale will be carried out by gradually reducing the starting price of the lot, while the minimum selling price, according to the published terms, is 2.1% of the initial price – UAH 10.53 million.
According to the state bank, only financial institutions that have a valid license to lend money or provide factoring services and meet the bank’s requirements will be allowed to participate in the auction. Applications for participation can be submitted until February 2, and the auction itself will take place on the 23rd of the same month.
According to the National Bank of Ukraine, as of November 1, 2023, PrivatBank ranked 1st in terms of assets (UAH 804.14 billion) among 63 banks operating in the country, and 2nd in terms of the number of branches (1131).
The net profit of state-owned PrivatBank (Kyiv) in January-September 2023 amounted to UAH 43.37 billion, which is 3 times higher than the same period in 2022, according to the bank’s unconsolidated report for the third quarter.
According to the report, the state-owned bank’s net profit for the third quarter amounted to UAH 13.62 billion, which is UAH 0.082 billion less than in the second quarter, and at the same time UAH 6.08 billion more than in the same period last year.
According to the report, PrivatBank’s net interest income increased by 64.5% year-on-year to UAH 43.18 billion in January-September 2023, including a 40.7% increase to UAH 15.32 billion in the third quarter, which is UAH 1.2 billion less than in the second quarter of this year.
Net fee and commission income for the first nine months of this year increased by 25% to UAH 17.45 billion compared to the results of 2022. However, in the third quarter, this figure was 1.5% lower than in April-June this year, but 1.3% higher than in the third quarter of 2022 – UAH 5.81 billion.
A significant contribution to the improvement of the bank’s financial result was made by a decrease in the loss from impairment for the first nine months of this year to UAH 0.072 billion, while in the same period last year this figure was UAH 17.34 billion. According to the report, in July-September, the bank even made a profit of UAH 0.697 billion under this item, compared to UAH 0.051 billion in the previous quarter and UAH 9.73 billion in the third quarter of last year.
PrivatBank also reports that its total profit for January-September this year reached UAH 49.52 billion, 3.5 times higher than in the comparable period of 2022. However, in the third quarter of 2023, the total profit decreased by 42% compared to the second quarter and amounted to UAH 13.63 billion, exceeding the total profit for the third quarter of 2022 by 43%.
According to the report, in 9M2023, the bank’s assets increased by 12%, reaching UAH 605.26 billion as of September 30.
This growth is explained by the increase in the amount of funds with the NBU from UAH 11.46 billion to UAH 59.32 billion, funds on correspondent accounts and overnight deposits with banks: in Ukraine, they amounted to UAH 2 million for this period (data for 2022 are not available), in the countries of the Organization for Economic Cooperation and Development (OECD) – from UAH 58.1 billion in 2022 to UAH 75.22 billion as of September 30, 2023.
As for loans and advances to customers, they grew by 32% to UAH 89.82 billion in January-September this year. On the contrary, loans and advances to banks decreased by 10.7% to UAH 93.81 billion since December 2022, including UAH 93.14 billion in NBU certificates of deposit (CDs) and UAH 0.67 billion in escrow with the NBU. At the same time, UAH 55.5 billion of these are CDs at 16%, UAH 26.3 billion are CDs at 22%, and UAH 10 billion are CDs at 25%.
The loan portfolio of legal entities grew by 15.8%, including repurchase agreements to UAH 2.87 billion (no data for 2022). The largest increase in the retail portfolio was recorded in credit card loans (+16.8%), consumer loans (+94.5%), and car loans (up 2 times).
Finance lease loans and receivables increased from UAH 167.93 billion to UAH 169.35 billion. Overall, financial leasing receivables decreased significantly in all segments, both for individuals and legal entities, as well as for small and medium-sized businesses and enterprises.
At the same time, investments in securities decreased slightly for the first time this year, from UAH 239.75 billion to UAH 239.18 billion.
In the first nine months of 2023, PrivatBank’s customer accounts increased from UAH 471.97 billion to UAH 509.94 billion, and equity increased from UAH 57.79 billion to UAH 83.11 billion.
The provision for expected credit losses increased from UAH 174.35 billion in 2022 to UAH 182.41 billion in September this year.
According to the National Bank of Ukraine, as of September 1, 2013, PrivatBank is the leader in total assets (UAH 642.3 billion) among 64 operating banks in the country and ranks third in terms of the number of branches – 1131.
Net profit of state-owned PrivatBank (Kyiv) for January-June 2023 amounted to UAH 29.75 billion, which is 4.7 times higher than in the same period of 2022, according to the unconsolidated semi-annual report of the bank.
According to it, in particular, in the second quarter of this year net profit reached UAH 13.7 billion, which is 5.3 times higher than the net profit for the second quarter of last year.
It is indicated that the net interest income of PrivatBank for the first half of the year increased by 81.4% to UAH 27.86 billion, including in the second quarter the growth amounted to 74.2% to UAH 14.09 billion.
Meanwhile, net fee and commission income in January-June this year increased by 41.3% to UAH 11.64 billion, including in the second quarter – by 43.65% to UAH 5.94 billion.
A significant contribution to the improvement of the bank’s financial result was made by a decrease in the loss from utility reduction in the first half of this year to UAH 769 million, while for the same period last year this indicator amounted to UAH 7.54 billion. According to the report, in the second quarter of this year, this item even generated UAH 51 million in profit against a loss of UAH 5.67 billion in the second quarter of last year.
PrivatBank also reports that its total profit for the first half of this year reached UAH 35.89 billion, which is 7.4 times higher than the figure for January-June last year, including a total profit of UAH 19.325 billion in the second quarter-2023 against UAH 4.85 billion in the same period of 2022.
According to the report, the bank’s assets grew by 5% in the first half of 2023, reaching UAH 568.84 billion by June 30.
This growth is explained by an increase in cash and funds with the NBU from UAH 96.4 billion to UAH 148.23 billion and loans and advances to customers from UAH 68.08 billion to UAH 76.53 billion, while investments in securities increased marginally from UAH 239.75 billion to UAH 240.64 billion, and debts of other banks decreased by 24.6% to UAH 78.3 billion.
PrivatBank’s customer funds increased from UAH 471.97 billion to UAH 488.06 billion in the first six months of 2023, while capital increased from UAH 57.79 billion to UAH 69.52 billion.
According to the National Bank of Ukraine as of June 1, 2023, PrivatBank is the leader in terms of total assets (UAH 742.433 billion) among 65 operating banks in the country.
According to the NBU, Privat closed 79 branches in the second quarter, reducing its network to 1,131 units across Ukraine, although its report said it had eight branches and 1,199 operating outlets at mid-year, just one less than at the beginning of the year.
