The net profit of Alfa-Bank (Kyiv) in 2020 amounted to UAH 1.21 billion, which is 1.6 times less than in 2019 (UAH 1.93 billion).
According to the bank, in the fourth quarter of last year, the bank received UAH 433.645 million of net profit, which is 1.4% less than in the same period in 2019 (some UAH 440 million).
Alfa-Bank’s assets over the past year increased by 35.6%, to UAH 97.5 billion, including the bank’s loan portfolio by 22%, to UAH 47.82 billion, due to loans provided to business entities, the volume of which increased by 51.4% to UAH 19.6 billion. At the same time, the volume of highly liquid assets increased by 39.5%, to UAH 7.2 billion, due to an increase in cash balances by 74.7%, to UAH 5.1 billion.
It is indicated that the balances on the account in the National Bank as of January 1, 2021 amounted to UAH 2.1 billion, while the liabilities to the National Bank reached the level of UAH 9.9 billion.
According to the statistics, the volume of balances placed on correspondent accounts in other banks increased 4.2 times, to UAH 8.3 billion.
The bank’s liabilities increased by 38.5% to UAH 87.8 billion, including the volume of legal entities’ funds by 34.8%, to UAH 30.4 billion, and funds of individuals by 19.4%, to UAH 41.5 billion.
The bank’s capital increased by 18.1%, to UAH 9.7 billion, and the regulatory capital as of January 1, 2021 amounted to UAH 8.8 billion.
As of October 1, 2020, Alfa-Bank ranked sixth in terms of total assets (UAH 101.64 billion) among 74 banks operating in the country.
The state-owned Oschadbank, according to preliminary results (without corrections and before the audit), in 2020 received a net profit of UAH 2.8 billion compared to UAH 277 million in 2019, the bank said on Friday.
“Since 2016, the bank has continued to operate profitably. The return on equity [RoE] of the bank at the end of 2020 is 13.8% and significantly exceeds the corresponding result in 2019 [some 1.3%],” the document said.
At the same time, Oschadbank said that the results of 2020 were significantly affected by creating reserves in accordance with international financial reporting standards (IFRS 9), due to negative forecasts for the activities of certain sectors of the economy. “These forecasts are caused by the application of adaptive and full quarantine restrictions in the fight against the coronavirus [COVID-19] pandemic, as well as the current slowdown in business activity,” Oschadbank said.
Over the nine months of 2020, it posted a net profit of UAH 4.74 billion, which is 25 times higher than this indicator for the same period in 2019 (some UAH 189 million). The bank’s net interest income for the three quarters of last year increased by 35.4%, to UAH 5.67 billion, and the net commission income by 8.4%, to UAH 3.24 billion.
According to the report, the net interest income of Oschadbank as a whole for 2020 increased by UAH 2.5 billion, or by 45.4%, to about UAH 8 billion, mainly due to a decrease in interest expenses due to cheaper funding.
The financial institution indicated a significant increase in the fixed-term resource base last year more than UAH 9 billion (10%), including on deposits of individuals UAH 4.9 billion, and on deposits of business entities UAH 4.3 billion.
The loan portfolio for the year decreased by 3%, to UAH 63.2 billion, the press release said.
Among the achievements of last year, Oschadbank singled out a decrease in the level of non-performing loans (loans overdue more than 90 days) from 49% to 24%. During the year, it was possible to restructure loans totaling UAH 16.4 billion, in cases of non-performing loans, the courts issued verdicts in favor of Oschadbank in the amount of UAH 3.9 billion, of which it managed to return UAH 2.8 billion, the financial institution said.
The message also indicates that as of the end of 2020, Oschadbank’s equity capital was UAH 22 billion, and the capital adequacy ratio was 19%, while the National Bank’s standard was 10%.
The financial institution also indicated that in 2020 it paid UAH 3.4 billion in taxes, fees and mandatory payments to the state budget.
Oschadbank was founded in 1991. Its sole owner is the state.
According to the National Bank of Ukraine, as of October 1, 2020, Oschadbank ranked second (UAH 266.29 billion) among 74 banks operating in the country in terms of total assets.
In November 2020, solvent banks of Ukraine saw UAH 3.54 billion of net profit, which is two
50% less year-over-year (UAH 7 billion), according to data published on the website of the National Bank of Ukraine (NBU).
According to the data, in January-November 2020, the banks’ net profit decreased by 28.6% year-over-year, to UAH 43.37 billion.
Banks’ incomes for 11 months increased by 3.3% year-over-year, to UAH 229.25 billion, including the result from revaluation and from sales and purchases grew by 1.4 times year-over-year (to UAH 22.5 billion), fee and commission income by 12.3% year-over-year (to UAH 62.97 billion), while interest income fell by 3.7% year-over-year (to UAH 135.49 billion).
At the same time, the banking system’s expenses for the specified reporting period amounted to UAH 186.13 billion, which is 14.1% more than in the same period in 2019. The increase in expenses was due to an increase in amounts sent to reserves (2.9 times more year-over-year), reaching UAH 25.08 billion. In addition, banks’ fee and commission expenses grew by 1.5 times, to UAH 21.57 billion, while interest expenses decreased by 13.7%, to UAH 58.46 billion.
PrJSC United Mining and Chemical Company, which manages Vilnohirsk Mining and Metallurgical Plant (Dnipropetrovsk region) and Irshansk Mining and Processing Plant (Zhytomyr region), in January-September this year increased its net profit by 4.2 times compared to the same period last year, to UAH 424.494 million (against UAH 100.736 million, respectively).
“The company’s net profit, actually received in the first nine months of this year, amounted to UAH 424.494 million, which is more than four times higher than the financial result of last year, which amounted to UAH 100.736 million,” the State Property Fund of Ukraine said in a press release.
At the same time, earlier, with reference to data of the portal of state enterprises, it was reported that UMCC for the nine months of 2019 reduced its net profit by 47.8% compared to the same period in 2018, to UAH 221.040 million from UAH 423.079 million. At the same time, net income for the indicated reporting period increased by 5.8%, to UAH 2.698 billion, and EBITDA amounted to UAH 488.895 million.
As reported, the Cabinet of Ministers of Ukraine on November 18 of this year approved the financial plan of the UMCC for 2020 with a net profit of UAH 575.670 million. At the same time, payments to the state this year from the company should amount to UAH 344.672 million, including income tax some UAH 104.203 million.
UMCC sells its products to more than 30 countries of the world. The main sales markets are the EU, China, Turkey, as well as the United States and African countries.
The Cereal Planet Group, a leading producer of cereals in Ukraine, in January-September 2019 received EUR 156,000 in net profit in January-September 2020, which is 1.8 times more compared to the same period in 2019.
According to the financial statements of the Cereal Planet PLC (Cyprus) on the Warsaw Stock Exchange, its revenue increased by 34.4%, to EUR 17.31 million, and gross profit by 1.6 times, to EUR 4.35 million.
In July-September 2020, the company reduced its net profit by 41.2%, to EUR 37,000, compared to the third quarter of 2019, and increased its revenue by 7%, to EUR 4.35 million. At the same time, the gross profit of Cereal Planet in the indicated period of 2020 decreased by 2.7%, to EUR 930,000.
“Currency translation differences played negative role and in the third quarter 2020 were EUR minus 282,000, aggregated three quarters 2020 it was EUR minus 506,000,” the report says.
According to the report, in the third quarter 2020, the company increased cereal production by 23%, to 10,400 tonnes compared to the same period last year. The main reason for the growth was an increase in pea production by 41%, to 5,130 tonnes, buckwheat by 35%, to 2,900 tonnes, bulgur by 18%, to 1,740 tonnes.
In general, over the period, Cereal Planet increased cereal production by 51%, to 33,500 tonnes compared to January-September 2019. The growth was due to an increase in pea production by 122%, to 16,880 tonnes, buckwheat by 39%, to 6,980 tonnes, bulgur by 7%, to 4,580 tonnes, and millet by 24%, to 2,640 tonnes.
Cereal Planet produces weight grains for B2B under the OLIMP trademark for four product lines: Bulgur, Ridlana, Maifaina, Zlotokosica, and under the Lyuba Ferma trademark – food for animals. It exports cereals to more than 50 countries of the world (China, India, Germany, Italy, UAE, Poland, Turkey, etc.).
Cereal Planet achieved nowadays around 10% of the Ukrainian market.
The owners of the group are Anatoli and Oleksandr Vlasenko (33.54% and 29.93%, respectively), Olekasandr Slavhorodsky (29.93%), Ihor Dobruskin (5.5%).
Cereal Planet in 2019 received EUR 75,000 in net loss versus EUR 162,000 in net profit in 2018. In January-June 2020 it received EUR 247,000 in net profit versus EUR 26,000 for the same period in 2019.
The profit of Ukrainian banks in April-September 2020 fell by 22.2%, to UAH 37.6 billion compared to the same period a year earlier (year-over-year), at the same time, the National Bank of Ukraine (NBU) expects that till the end of 2020 the banking system of Ukraine will be profitable.
According to an overview of the banking sector on the NBU website, the banking sector continues to overcome the consequences of the COVID-19 pandemic, in the third quarter of 2020 the main indicators of banks resumed growth. At the same time, losses from the deterioration of the loan portfolio quality remain the main challenge for the profitable activities of banks.
According to the NBU report, during the third quarter, the rate on 12-month deposits in hryvnias decreased by only 0.9 percentage points, to 8.7% per annum. It is noted that, although the NBU refinancing rate remains unchanged, a further decrease in loan rates is expected, since the potential for their reduction has not yet been exhausted.
According to the National Bank, the spread between three-month and 12-month deposits in hryvnias increased slightly from 0.2 percentage points to 0.5 percentage points, but this did not create incentives for the continuation of the maturity of deposits, and corporate hryvnia funds fell by 1.4 percentage points, to 3.8% per annum.
According to the report, the average interest loan rates to economic entities in hryvnias decreased by 1.0 percentage points, to 9.6% per annum in July-September, and for loans to individuals by 1.9 percentage points, to 30.9% per annum.
It is indicated that the net assets of Ukrainian banks in the third quarter increased by 7.6% to UAH 1.71 trillion, the share of government domestic loan bonds in assets by 4.8 percentage points, and NBU deposit certificates by 17%.
