Business news from Ukraine


Alfa-Bank (Kyiv) on December 18 opened the AHUB co-working space with a conference room for educational and business events, meeting rooms and multimedia spaces in the center of Lviv, according to the website of the financial institution.
“AHUB is a space for work and meetings of Alfa-Bank clients. This is a place that can replace an office or a meeting room for someone … We immediately announce the opening of AHUB in Kyiv next year,” the executive director of Alfa-Bank, Olha Fylypenko, said.
According to the press service of the bank, AHUB covers an area of 326 square meters and is located in a building rented by Alfa-Bank on Rynok Square, which also houses a bank branch.
It is indicated that in addition to access to the business space, AHUB offers an educational program, in particular thematic offline and online events with the possibility of remote access to them.
In addition, the AHUB has a relax room, a stress room and a bar, the report says.

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Cheap loans and mortgage should be based on economic stability, otherwise it is impossible to regulate such programs manually, General Manager of Alfa-Bank Rafal Juszczak has said.
“The idea of making [banks] to open deposits at 5% will reduce the interest rate to 10% indeed. But where is confidence here? The bank is confidence. The economy is stability, predictability. Would you deposit your private money at 5% under a threat of devaluation? Such actions will provoke a response – we won’t see deposit inflows,” the banker said in an exclusive interview to Interfax-Ukraine.
Juszczak also spoke in favor of a free market as long as market mechanisms operate there and it is impossible to force people to do anything.
“I would focus on economic stability. Hence, the interest rates will gradually decrease,” he said.
Alfa-Bank’s general manager also noted that a slowdown in rates could promote changes in banks as their interest income would decrease.
He also said that Alfa-Bank’s interest rates remain at the market level, although they may keep decreasing.
“I don’t rule out that against the background of such a positive dynamics in interest rates we will be able to offer a new product with a very attractive rate so as to get an additional market share due to the price,” Juszczak said.
At the same time, the banker mentioned that the future of the crisis is still not clear.”I agree with out macroeconomist Oleksiy Blinov: he is not as pessimistic as other analysts. Today many of them say that Ukraine, thanks to the specifics of its economy, will get even stronger after this crisis than many other countries,” he said.
As of June 1, 2020, Alfa-Bank ranked sixth among 75 banks operating in the country in terms of total assets (UAH 94.113 billion).


Alfa-Bank and Globus Bank (both Kyiv-based) made agreements with the government of the Republic of Belarus on providing Ukrainian entrepreneurs with loans for the purchase of Belarusian goods on preferential terms using the resources of the latter, the press services of the banks said.
“According to the terms of the program, Alfa-Bank Ukraine will receive compensation for loan interest for the purchase of Belarusian machinery for a period of up to five years in the amount of two thirds of the National Bank of Ukraine discount rate, valid on the date when the loan is issued,” Alfa-Bank said on its website.
Under the preferential loan program, Ukrainians will be able to purchase Belarusian machinery, in particular agricultural, automotive and road-construction.
The compensation is provided under the agreement and decree No. 466 on some measures for the sale of goods produced in the Republic of Belarus of the president of Belarus dated September 24, 2009.
According to the National Bank of Ukraine (NBU), at the beginning of 2020, the largest shareholders of Alfa-Bank were indirectly Mykhailo Fridman (31.483767%), German Khan (20.085856%), Oleksiy Kuzmichov (15.638704%), Petr Aven (11.881235%) and UniCredit SpA (Italy, 9.484448%).
Bank Globus was registered in 2007. Its major participants as of January 1, 2019 were Olena Sylniahina and Dmytro Polkovsky indirectly through Ukrainian Media Technologies LLC (100%).



Alfa-Bank (Kyiv) has improved our real GDP growth forecast for 2020 from 3% to 3.2% and expects economic growth to reach 3.8% in 2021, according to the bank’s macroeconomic forecast under the base case (most probable) posted on its website last week. According to the document, the economy would expand with moderate rates of 2.3-2.5% during the first three quarters of 2020. At the same time, the bank sees prospects for economic growth accelerating in the fourth quarter of 2020 to more than 4% due to expected thrust in bank lending, which would provide additional impetus for domestic demand.
“Low baseline effect would be another major reason behind economic growth acceleration at the end of 2020, as the last quarter of the previous year was associated with local slump in industrial and agricultural output,” the bank said in the forecast.
According to the bank’s analysts, low inflation would be one of the key features of 2020. According to the bank’s forecast, average annual growth in Consumer Price Index (CPI) would turn just 3.4% this year, after 7.9% in 2019.
“Only by the end of 2020, inflation would return to the target range set by the National Bank of Ukraine (4-6%), as a result of monetary easing and some recovery in producer prices,” the bank’s analysts said.
The bank’s experts share the recently updated central bank’s expectation of its prime rate at 7% by end 2020 from current 11%. However, they do not exclude that prolonged inflation below target range in 2020 would request for an even more accommodative monetary policy.


The net profit of Alfa-Bank (Kyiv) in January-September 2019 totaled UAH 1.487 billion, which is 69.2% more than a year ago (UAH 879.189 million), according to a quarterly financial statements of the bank.
According to the report posted on Alfa-Bank’s website, net profit in the third quarter of 2019 amounted to UAH 577.513 million, which is 19.2% more than in the third quarter of last year.
Alfa-Bank’s net interest income in January-September 2019 increased 12.2% compared to the corresponding period of 2018, to UAH 2.998 billion. Assets increased 8.4%, to UAH 65.589 billion, including loans issued to customers by 1.3%, to UAH 32.885 billion. Bank liabilities from the beginning of the year grew by 6.4%, to UAH 59.058 billion. Net worth for this period increased 29.6%, to UAH 6.531 billion. The charter capital remained at the level of UAH 12.180 billion.
At the same time, Ukrsotsbank’s net loss in January-September 2019 amounted to UAH 1.092 billion, which is 30.1% more than for the same period of 2018 (UAH 839.465 million), according to a quarterly report on the bank’s website. In the third quarter of 2019, it increased 33.3% compared to the corresponding period of 2018, to UAH 618.586 million.
Ukrsotsbank’s net interest income in January-September 2019 decreased 55.3% compared to the same period in 2018 and amounted to UAH 339.940 million. Assets decreased 31.8%, to UAH 10.690 billion, including loans issued to customers by 37.7%, to UAH 6.116 billion. Liabilities of Ukrsotsbank decreased 30.9%, to UAH 8.708 billion. Net worth decreased 35.5%, to UAH 1.982 billion. The charter capital in January-September 2019 remained at the level of UAH 16.673 billion.
As reported, the National Bank of Ukraine (NBU) in October 2019 revoked the banking license and removed Ukrsotsbank from the public register of banks in connection with the completion of reorganization of Ukrsotsbank through merger with Alfa-Bank.
According to the NBUB, as of July 1, 2019, Alfa-Bank was sixth (UAH 72.159 billion) in terms of total assets, Ukrsotsbank – 13th (UAH 33.129 billion) among 76 operating financial institutions



Alfa-Bank at an auction held on the ProZorro.Sales platform on September 17, 2019 bought the largest pool of assets – mortgage loans of Delta Bank (both based in Kyiv) with the balance-sheet value of over UAH 1.3 billion for UAH 44.14 million, according to information posted on the ProZorro.Sales platform.
Director of the department of consolidated sales of assets at the Deposit Guarantee Fund Taras Yeleiko said on his Facebook page that with a starting price of the lot of UAH 48.4 million, bids initially fell to UAH 33.8 million, but later during the competition between bidders increased to UAH 44 million.
According to him, the pool consisted of 60% of assets located in Kyiv region, 40% of the assets located in Central and Western Ukraine.
Five companies submitted bids for this pool.
“The increase in the number of bidders and their willingness to increase the price offer indicates a revival of the market interest in such assets,” Yeleiko said.
According to him, companies with foreign capital also participated in the auction.

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