Business news from Ukraine

Credit Agricole Bank increased its net profit 9 times

In 2023, Credit Agricole Bank increased its net profit to UAH 2.8 billion from UAH 0.3 billion in 2022, the press service of the financial institution reported on Friday.

“This result is largely due to high liquidity in the market and a wide spread between interest rates, which is more likely to be temporary. In 2024, there will be a gradual transition to a more normal functioning of the banking market, although military risks remain relevant,” the NBU said in a statement.

It is noted that Credit Agricole’s net banking income last year amounted to UAH 8.8 billion, which is 37% higher than the result of 2022 (UAH 6.4 billion). According to the press service of the financial institution, this figure was achieved due to high net interest income generated by a strong liquidity position, while operating expenses of the bank increased by 21% from UAH 1.9 billion to UAH 2.4 billion.

In particular, personnel costs increased by 20% by 2022, while other expenses increased by 25% due to investments in IT infrastructure to ensure uninterrupted operation within the Power Banking project, development of mobile applications for individuals and IT Professionals clients, as well as improvement of the Internet banking solution for legal entities (CORPEX).

It is indicated that the bank’s deposit portfolio exceeded UAH 90 billion, having increased by 41%, or UAH 26 billion, which, according to the bank, is a manifestation of customer confidence.

According to the information, in 2023, the bank added about UAH 1 billion in reserves (in 2022 – UAH 6.3 billion) and maintained its loan coverage ratio at 25.8%.

“Asset quality is stabilizing, and the NPL ratio has been consistently declining for six months in a row, reaching 12.9% as of December 2023,” the bank said.

It is noted that Credit Agricole has strong liquidity positions in both hryvnia and foreign currency: LCR at 277% and NSFR at 345%. Meanwhile, the regulatory capital adequacy ratio (N2) was 28.3% in December 2023.

In 2023, Credit Agricole will pay UAH 3.3 billion in taxes and contributions, the press service informed.

According to the National Bank of Ukraine, as of December 1, 2023, Credit Agricole Bank ranked 11th in terms of total assets (UAH 103.07 billion) among 63 operating banks in the country, with 141 branches. The bank is fully owned by French Credit Agricole SA.

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Oschadbank increased its net profit by 7.4 times

State-owned Oschadbank ended 2023 with UAH 4.75 billion in net profit, 7.4 times higher than the financial result of 2022 (UAH 0.638 billion), the financial institution said in a press release on Monday.

“The final amount of net profit in 2023 was significantly affected by an increase in the corporate income tax rate for banking institutions (from 18% to 50%) (…), as well as a negative revaluation of derivatives – government bonds with an indexed value in the capital of Oschadbank in the amount of UAH 2.9 billion,” the financial institution explained.

Regarding the bonds, Oschadbank emphasized that their fair value is influenced by external factors beyond the bank’s control, such as exchange rates and interest rates.

It is indicated that the pre-tax profit of the state-owned bank amounted to UAH 9.5 billion, which is a historical maximum.

“Compared to last year’s figures, Oschadbank’s net interest income increased by 26% to almost UAH 19 billion, while net commission income increased by 14% to UAH 7 billion,” the release says.

According to the release, in the face of the national currency devaluation, the bank managed to keep its operating expenses at the same level as last year due to effective management of operating expenses.

At the same time, Oschad’s operating profit, before provisions for credit risks, revaluation of derivatives and taxation, amounted to UAH 12 billion, which is 52% higher than in 2022.

As for the volume of customer accounts, in 2023 it increased by 28% to UAH 300 billion. The bank specifies that the growth of stable term customer accounts was 26%, and their volume reached UAH 100 billion.

Over the four quarters of 2023, Oschad managed to increase its loan and investment portfolio by 16% to UAH 263 billion. In particular, retail loans increased by 30% to UAH 15 billion.

It is noted that at the same time, the state-owned bank maintained a consistently high level of liquidity to ensure the smooth implementation of all client payments.

“A balanced credit policy taking into account the risks of wartime and the gradual liberation of our land from the occupiers contributed to the improvement of the quality of the Oschadbank loan portfolio and the dissolution of UAH 1.4 billion of provisions for expected credit risks on interest-bearing assets,” the financial institution said in a release.

The press service of Oschadbank informed that the bank has sufficient liquidity and capital reserves. According to the data provided, the regulatory capital adequacy ratio of the state-owned bank as of January 1, 2024 is 16.57%, while the NBU standard is 10%.

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PrivatBank increased its net profit by 25%

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.

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Yaroslavsky’s DMZ cut profits by 99.8% in 2022

Dnipro Metallurgical Plant (DMZ, formerly Evraz-DMZ), a part of DCH Steel of businessman Aleksandr Yaroslavsky’s DCH Group, posted a net profit of UAH 4.225 million in 2022, compared to UAH 1 billion 725.157 million in 2021.

According to the minutes of the annual general meeting of shareholders held on December 22, 2023, which was held remotely, the shareholders decided to use the profit made in 2022 to repay the losses of previous years and not to make any contributions to the reserve capital.

The outstanding loss at the end of 2022 amounted to UAH 454.601 million.

The shareholders planned to consider personnel issues regarding the termination of powers of the members of the Supervisory Board and the Audit Committee, election of a new Supervisory Board, but the meeting did not vote for the resignation of the members of the Supervisory Board and the Audit Committee – 100% of shareholders were against it. Therefore, no votes were counted on the issues of amendments to the company’s charter and internal documents (taking into account the liquidation of the revision commission as a controlling body).

As reported, in 2021, DMZ received a net profit of UAH 1 billion 725.157 million, while it ended 2020 with a net loss of UAH 394.091 million.

DMZ specializes in the production of steel, cast iron, rolled products and products made from them.

On March 1, 2018, DCH Group signed an agreement to buy Dnipro Metallurgical Plant from Evraz.

According to the third quarter of 2023, Drampisco Limited (Cyprus) owns 97.7346% of DMZ shares.

The authorized capital of the company is UAH 574.994 million, with a par value of UAH 0.25 per share.

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Northern Mining and Processing Plant earned almost UAH 682 mln in profit

Northern Mining and Processing Plant (Pivdennyi GOK, Kryvyi Rih, Dnipro Oblast), a part of Metinvest Group, posted a net profit of UAH 681.867 million in January-September 2023, compared to a net loss of UAH 2 billion 227.488 million in the same period of 2022.

According to the interim report of the company, which is owned by Interfax-Ukraine, net income for the period increased by 8.8% to UAH 14 billion 27.599 million.

Retained earnings as of the end of September 2023 amounted to UAH 10 billion 727.921 million.

In 9M2023, Northern Mining produced 1 million 414.95 thousand tons of concentrate and 2 million 233.98 thousand tons of pellets.

The company ended 2022 with a net loss of UAH 2 billion 972.333 million, while in 2021 it made a net profit of UAH 25 billion 293.042 million.

In 2022, Northern GOK produced 2 million 144.23 thousand tons of concentrate and 1 million 525.01 thousand tons of pellets. In 2022, the plant’s supplies to the Ukrainian market amounted to 3.957 million tons, compared to 12.612 million tons in 2021. The share of sales of commercial concentrate to the domestic market in physical terms amounted to 51%, which is 37% less than in 2021. The company exported 2.092 million tons of iron ore concentrate and pellets.

The plant specializes in the extraction, processing and production of iron ore.

According to the third quarter of 2023, Metinvest B. V. owns 100% of the shares in Northern Mining.

Northern GOK is part of Metinvest Group, whose main shareholders are System Capital Management (SCM, Donetsk) (71.24%) and Smart Holding Group (23.76%). Metinvest Holding LLC is the management company of Metinvest Group.

The authorized capital of Yenakiieve Mining is UAH 579.707 million.

KAMETSTAL posted net profit of UAH 1.4 bln

Metinvest Group’s Kametstal plant, which was built at the facilities of Dnipro Metallurgical Plant (DMK, Kamianske, Dnipro region), posted a net profit of UAH 1 billion 359.475 million in January-June 2023, while the same period in 2022 ended with a net loss of UAH 1 billion 256.843 million.

According to the company’s interim report available to Interfax-Ukraine, net income for the period decreased by 0.8% to UAH 23 billion 415.731 million.

Retained earnings as of the end of June 2023 amounted to UAH 202.216 million.

The plant ended 2022 with a net loss of UAH 883.119 million, while in 2021 it made a net profit of UAH 120.277 million. The company’s net income in 2022 increased by 91.3% to UAH 37 billion 850.282 million. Production in 2022 amounted to 1 million 686.4 thousand tons of steel products.

“Kametstal was established on the basis of PJSC Dnipro Coke and Chemical Plant (DKKhZ) and the Centralized Steel Works of PJSC Dnipro Metallurgical Plant (DMK).

According to the third quarter of 2023, Metinvest B.V. (Netherlands) owns 100% of the company’s shares.

The authorized capital of PJSC Kametstal is UAH 170.584 million.

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