Business news from Ukraine

PRIVATBANK CUTS INTEREST RATES FOR ENTREPRENEURS

From February 14, state-owned PrivatBank (Kyiv) has cut basic interest rates for all programs for financing entrepreneurs and small businesses by 2-3 percentage points (p.p.), according to the bank’s press release issued on February 17.
The press service of the bank told Interfax-Ukraine that the interest rate under the KUB (Country of Successful Business) program was cut by 2 p.p. to 18% per annum, rates on the Entrepreneurial and the Credit Line on the Account credit lines – by 3 p.p. to 27% and 18%, respectively.
In addition, rates on business mortgage were cut by 3 p.p. (to 16% per annum), on loans secured by deposits (to 13% per annum) and on investment credits (to 16% per annum).
The rates were cut by 3 p.p. to 16% per annum on the Agroseason credit line and on loans for the purchase of agricultural equipment under state programs.
As reported, PrivatBank plans to allocate at least UAH 10 billion for financing programs for Ukrainian entrepreneurs in 2020.
On December 18, 2016, the government of Ukraine, referring to the proposal of the National Bank of Ukraine (NBU) and the former shareholders of PrivatBank, decided to nationalize the largest financial institution on the Ukrainian market and pumped more than UAH 155 billion into its capital.
PrivatBank ranked first among 75 banks in terms of total assets (UAH 552.058 billion) on January 1, 2020, according to the NBU

STATE-RUN PRIVATBANK HEADS LIST OF MOST PROFITABLE UKRAINIAN BANKS WITH UAH 32 BLN NET PROFIT

State-controlled PrivatBank headed the rating of the most profitable Ukrainian banks in 2019, declaring UAH 32.609 billion in net profit, while Pravex-Bank recorded the largest loss last year at UAH 121.502 million.
According to the National Bank of Ukraine (NBU), Raiffeisen Bank Aval (UAH 4.749 billion) ranked second in the list of the most profitable banks, and FUIB (UAH 2.623 billion) was third, rising two positions in the fourth quarter. UkrSibbank (UAH 2.580 billion) ranked fourth, while OTP Bank (UAH 2.537 billion) ranked fifth, rising two lines.
At the same time, state-controlled Ukreximbank fell from the fourth position it held in the nine months of 2019, to the 11th one, declaring UAH 1.002 billion of net profit, and Ukrgasbank climbed six positions, to the 10th one, posting UAH 1.299 billion.
According to the central bank, Sky Bank ranked second in terms of losses, its net loss amounted to UAH 27.543 million, Alpari Bank ranked third (UAH 18.435 million), Cominvestbank (UAH 17.982 million) ranked fourth, while Ukrainian Bank for Reconstruction and Development ranked fifth (UAH 4.409 million). At the same time, Bank Credit Dnipro, which according to the results of its activities for the first nine months of 2019 was third in terms of loss, declared UAH 309.903 million in net profit and ranked 18th.

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STATE-RUN PRIVATBANK SEES NET PROFIT RISE BY MORE THAN 5 TIMES IN NINE MONTHS

Nationalized PrivatBank (Kyiv) in January-September 2019 saw net profit rise to UAH 27.4 billion from UAH 5.093 billion for the same period in 2018, which became a new absolute figure for the bank and the entire banking system of Ukraine, according to a press release from the bank.
According to the bank, its net commission income for the nine months amounted to UAH 13.3 billion, net interest income some UAH 14.7 billion.
As reported, the net profit of PrivatBank (Kyiv) in January-June 2019 amounted to UAH 18.3 billion, which is 2.7 times more compared to the corresponding period of 2018 (UAH 6.9 billion).
Net interest income for the six months amounted to UAH 9.8 billion, net commission income some UAH 8.5 billion.
The government of Ukraine on December 18, 2016, referring to the proposal of the NBU and the former shareholders of PrivatBank, the largest of whom at that time were Ihor Kolomoisky and Hennadiy Boholiubov, decided to nationalize this largest financial institution in the Ukrainian market and invested over UAH 155 billion in its capital.
PrivatBank ranked first among 76 banks operating in the country as of July 1, 2019 in terms of total assets (UAH 522.422 billion), according to the National Bank of Ukraine.

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STATE-RUN PRIVATBANK’S NET PROFIT TRIPLES IN 2019

The net profit of state-owned PrivatBank in January-August 2019 amounted to UAH 25.8 billion, which is almost three times more than a year ago, Board Chairman Petr Krumphanzl said at a press conference in Dnipro last week. According to him, the bank’s net commission income in January-August 2019 totaled UAH 11.6 billion, and its share of the bank’s income was 45.1%. “The growth in commission income is the result of an increase in the number of active customers and transactions of Privat24 online bank,” the board chairman said.
As reported, Ukraine’s government, at the recommendation of the National Bank of Ukraine (NBU) and former shareholders of PrivatBank, the largest of whom at that time were Kolomoisky and Boholiubov, on December 18, 2016 decided to nationalize PrivatBank, the largest Ukrainian financial institution. The state injected over UAH 155 billion in the bank’s capital.
PrivatBank ranked first as of July 1, 2019 in terms of total assets (UAH 522.422 billion) among 76 operating Ukrainian banks, according to the NBU.

PRIVATBANK SELLS NINE TANK FARMS

PrivatBank (Kyiv) has sold through OpenMarket (SETAM) nine tank farms in working condition for a total cost of UAH 15.67 million against an initial cost of UAH 9.4 million, the press service of SETAM state enterprise has reported.
According to the report, oil depots are situated in four regions: Kirovohrad, Zaporizhia, Zhytomyr and Sumy regions.
According to the press service, in Kirovohrad region one regional oil depot was sold at a starting price of UAH 1.989 million, another one located in the village of Hruzke of Kirovohrad region was sold for UAH 3.715 million under the starting price of UAH 0.79 million.
In Zhytomyr region, two tank farms were sold: for UAH 2.1 million under the starting price of UAH 0.654 million in the village of Yablunets, and another one for UAH 0.884 million under the starting price of UAH 0.553 million in the village of Zarudyntsi.
PrivatBank also sold at the auction three tank farms in Sumy region: in Lebedyn urban-type settlement for UAH 1.5 million with the starting price being UAH 0.644 million, in the village of Krasnopillya for UAH 1.098 million, and in the village of Bilany for UAH 0.789 million under the starting price of UAH 0.125 million.
Two tank farms were sold in Zaporizhia region: in Komyzh-Zorya urban-type settlement and in the town of Polohy tanks farms were sold under the starting prices – UAH 2.497 million and UAH 1.097 million respectively.
As reported, in July PrivatBank put up seven tank farms in a working condition for sale through OpenMarket for a total worth of UAH 1.059 billion.

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STATE-RUN PRIVATBANK SEES 2.7-FOLD RISE IN NET PROFIT IN H1 2019

Net profit of PrivatBank (Kyiv) in January-June 2019 totaled UAH 18.3 billion, which is 2.7 times more than a year ago (UAH 6.9 billion), PrivatBank Board Chairman Petr Krumphanzl has told Interfax-Ukraine.
According to him, net interest income of the bank over the period amounted to UAH 9.8 billion, net commission income reached UAH 8.5 billion.
“One of the significant factors that contributed to the achievement of good financial result is the high efficiency of the bank. This is ensured by significant automation of processes, high efficiency of the regional network, which includes almost 2,000 branches,” the banker said.
As reported, the government of Ukraine on December 18, 2016, referring to the offer of the National Bank of Ukraine (NBU) and former shareholders of PrivatBank, the largest of who at that time were Ihor Kolomoisky and Hennadiy Boholiubov, decided to nationalize this largest Ukrainian financial institution and infused over UAH 155 billion in its capital.
According to the NBU, PrivatBank as of April 1, 2019 was first among 77 banks operating on the market in terms of total assets (UAH 525.698 billion).

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