The National Bank of Ukraine (NBU) on September 9 made a decision to revoke the banking license and liquidate Bank Zemelny Capital (Dnipro) belonged to former Coal Industry Minister Viktor Topolov (94.4% of shares), the regulator has said on its website.
“At the suggestion of the Deposit Guarantee Fund, the NBU made decision No. 469-rsh dated September 9, 2021 to revoke the banking license and liquidate Bank Zemelny Capital,” the NBU said.
As reported, the NBU on August 11 classified Bank Zemelny Capital as insolvent due to the failure to meet its obligations to depositors and other creditors due to insufficient funds within the term established by the agreement or determined by the legislation of Ukraine.
Bank Zemelny Capital was founded in 1994. According to the NBU data as of January 1, 2021, the owner of the bank’s substantial participation is former Minister of the Coal Industry Viktor Topolov (94.4% of the shares).
According to the NBU, as of June 1, 2021, Bank Zemelny Capital ranked 63rd in terms of total assets (UAH 909.983 million) among 73 banks operating in the country.
The single counterparty exposure limit (H7, shall be no more than 25%) as of August 1, was violated by Prominvestbank (96.59%) and Industrialbank (46.75%), according to the website of the National Bank of Ukraine (NBU).
According to the regulator, the related party transactions exposure limit (H9, shall not exceed 25%) was violated by First Investment Bank (36.3%).
The limit on bank total long open FX position (L13-1, shall be no more than 10%) was violated by Oschadbank (140.725%), Prominvestbank (128.25%), PrivatBank (85.83%) and Industrialbank (18.65%).
The limit on bank total short open FX position (L13-2, shall be no more than 10%) was violated by Prominvestbank (137.27%).
The newly introduced net stable funding ratio (NSFR, shall be more than 80%) was violated by Prominvestbank (27.43%).
Bank Zemelny Capital violated six standards, namely: minimum regulatory capital H1 (UAH 102.942 million, shall be at least UAH 200 million), short-term liquidity ratio H6 (48.71%, shall be more than 60%), N7 standard (37.27%, shall be no more than 25%), the related party transactions exposure limit H9 (30.11%, shall not exceed 25%), the liquidity coverage ratio LCR for all currencies (15.31%, shall be at least 100%), as well as net stable funding ratio NSFR (69.8%, shall be more than 80%).
The National Bank of Ukraine (NBU) has declared insolvent Bank Zemelny Kapital (Land Capital, Dnipro) of former Minister of the Coal Industry Viktor Topolov (94.4% of shares), which as of June 1, 2021 ranked 63rd in terms of total assets (UAH 909.983 million) among 73 banks operating in the country, the press service of the central bank said.
The corresponding decision was approved by NBU decree No. 400-RSh/BT dated August 11, 2021.
“The board of the NBU decided to declare Bank Zemelny Kapital insolvent due to failure to fulfill its obligations to depositors and other creditors because of insufficient funds in the period established by the agreement or determined by the legislation of Ukraine,” the report says.
The NBU noted that the share of the financial institution amounted to 0.04% of the net assets of solvent banks, therefore the classification of the bank as insolvent will not affect the stability of the banking sector of Ukraine, which is stable today.
It is indicated that since the bank on July 1 was classified as a problematic due to the violation of liquidity standards, the financial condition and indicators of the bank deteriorated, the volume of highly liquid assets decreased to a critical level, which led to the emergence of outstanding customer payments.
It is noted that the only owner of the bank, Viktor Topolov, did not provide financial support to the institution, despite Article 58 of the law “on banks and banking activities, which states that the owners of substantial participation in the bank must take timely measures to prevent the occurrence of bank insolvency.
According to the report, 70% of the bank’s depositors will receive deposits in full, since their size does not exceed the amount guaranteed by the Deposit Guarantee Fund of UAH 200,000, while clients with larger amounts of deposits will receive them within the amount guaranteed by the fund.
The National Bank added that in general, the possible amount of payments of the guaranteed sum to depositors as of July 1, 2021 is UAH 435.8 million, or 92% of the total amount of individuals’ deposits.
The net profit of Universal Bank (Kyiv) in January-June 2021 amounted to UAH 1.65 billion, which is 5.7 times more than in the same period of 2020 (UAH 288.614 million).
According to the quarterly reports published on the bank’s website, its net profit for the second quarter of 2021 amounted to UAH 782.255 million, which is 6.3 times more than in the corresponding period last year (UAH 123.96 million).
The bank’s net interest income for the six months increased by 2.2 times compared to the same period in 2020, to UAH 2.2 billion, and net commission income – by 1.5 times, to UAH 1.25 billion.
The bank’s assets in January-June increased by 23.2%, to UAH 41.859 billion, including loans and customer debt – by 1.3 times, to UAH 22.19 billion, and cash and cash equivalents – by 8%, to UAH 4.49 billion.
Universal Bank’s liabilities for the first half of the year increased by 20%, to UAH 37.5 billion, including customer funds – by 18.8%, to UAH 32.526 billion.
The bank’s equity capital in January-June grew by 1.6 times, to UAH 4.3 billion, while the charter capital remained at the level of UAH 4.309 billion.
Universal Bank is part of TAS Group of businessman Sergiy Tigipko, which was founded in 1998 and has assets in financial and industrial sectors, agriculture, real estate, pharmaceuticals and venture projects. In addition to Universal Bank, the financial sector of the group includes TAScombank, two insurance companies, and a number of other organizations.
According to the National Bank of Ukraine, as of June 1, 2021, Universal Bank ranked 11th in terms of total assets (UAH 42.96 billion) among 73 banks operating in the country.
The solvent banks of Ukraine in January-February 2021 received UAH 6.491 billion of net profit, which is 2.5 times less than in the same period of 2020 (UAH 15.877 billion), according to data published on the website of the National Bank of Ukraine (NBU).
According to the data, the income of banks for the two months of this year decreased by 1.3 times against the indicator for the same period last year, to UAH 35.089 billion. In particular, the result from revaluation and from sales and purchases was negative and amounted to UAH 3.856 billion, while in the same period last year it was positive and amounted to UAH 7.865 billion.
At the same time, commission income grew by 15.9%, to UAH 12.379 billion
The expenses of the banking system in January-February 2021 decreased by 5.8% compared to this indicator in 2020, to UAH 28.598 billion, in particular, payments to reserves by 21.9%, to UAH 1.048 billion. At the same time, commission expenses increased by 26.5%, to UAH 4.715 billion.
As reported, Ukrainian banks in 2020 reduced their net profit by 29%, to UAH 41.3 billion, but in the fourth quarter the decline was 63% due to increased payments to reserves.
Polish Getin Holding S.A. (Wroclaw) on February 5 signed an agreement with a Ukrainian buyer for the sale of 100% of the shares of subsidiary Idea Bank (Lviv) and 100% of the shares of New Finance Service (Kyiv), Getin Holding S.A. has said.
According to a report on biznes.pap.pl, the parties plan to close the potential deal by September 30, 2021.
Before that the buyer will conduct due diligence the companies, and after a positive result of the due diligence the parties will proceed to agree on the terms of the potential transaction.
Getin Holding also reports that the company granted the buyer exclusive rights for negotiations until April 30, 2021.
Idea Bank (formerly Plus Bank) was founded in 1989. As of January 1, 2020, its sole shareholder was the financial group Getin Holding S.A. (Poland).
According to the National Bank of Ukraine, as of October 1, 2020, Idea Bank ranked 24th among 74 operating banks in terms of total assets (UAH 8.057 billion).