Business news from Ukraine

ZELENSKY SIGNS DECREE ON NEW SANCTIONS AGAINST 55 BANKS OF RUSSIA

President of Ukraine Volodymyr Zelensky by decree No. 264 has put into effect the decision of the National Security and Defense Council (NSDC) of June 18 on the extension and introduction of new sanctions against 55 Russian banks, payment systems and the so-called “central banks” from ORDLO at the suggestion of the National Bank of Ukraine.
According to the document posted on the website of the head of state, this list still includes, in particular, Bank of Moscow, Gazprom Bank, Bank Rossiya, Bank VTB, State Corporation VEB.RF, Sberbank Russia, as well as payment systems MoneyTo, BLIZKO, ANELIK, Kolibri.
With regard to banks that have subsidiaries in Ukraine, the restriction is to prevent the withdrawal of capital from the country.

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SEVEN UKRAINIAN BANKS VIOLATE REQUIREMENTS

The single counterparty exposure limit (H7, shall be no more than 25%) as of April 1, was violated by Prominvestbank (76.34%), Sberbank (49.1%) and Industrialbank (49.44%), 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 (44.14%) and Unex Bank (27.23%).

The limit on bank total long open FX position (L13-1, shall be no more than 10%) was violated by Oschadbank (131.72%), Prominvestbank (110.89%), PrivatBank (94.02%) and Industrialbank (11.32%).

The limit on bank total short open FX position (L13-2, shall be no more than 10%) was violated by Prominvestbank (111.99%).

The newly introduced net stable funding ratio (NSFR, shall be more than 80%) was violated by Prominvestbank (29.45%).

STATE-OWNED UKREXIMBANK ISSUES UAH 1 BLN LOANS UNDER AFFORDABLE LOANS 5-7-9% PROGRAM

State-owned Ukreximbank (Kyiv) has issued UAH 1 billion in loans under the Affordable Loans 5-7-9% program since the start of the program, the bank’s press service said on Wednesday.

“Almost every second loan under the program is aimed at capital investments in expanding the existing business, as well as supporting promising start-ups,” the press service said, citing Head of department of medium business and municipalities Semen Puskai.

It is indicated that half of the total amount of funds under the program are anti-crisis loans at 0% to ensure financing of the working capital of enterprises.

The bank added that refinancing of previously received loans at a reduced interest rate is actively used to reduce the debt burden on business.

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MTIBU PLACES 72% OF RESERVES ON HRYVNIA DEPOSITS IN STATE BANKS

The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) as of October 1, 2020 placed 72.6% of the hryvnia funds of the centralized insurance reserve fund for protection of road accident victims at four state banks.
According to a report on the MTIBU’s website, there are UAH 324.3 million on deposits in Ukreximbank, UAH 147 million in Oschadbank, UAH 267 million in Ukrgasbank, and UAH 24.750 million in PrivatBank.
In addition, Kredobank has UAH 94.2 million on deposits, Credit Agricole Bank some UAH 9.120 million, OTP Bank some UAH 42.9 million, TAScombank some UAH 95.794 million, FUIB some UAH 5.3 million, Alfa-Bank some UAH 7.6 million, and Pravex Bank some UAH 33.7 million.
In addition, as of September 30, 2020, the money of the centralized insurance reserve fund for protection of road accident victims in hryvnia-denominated government domestic loan bonds amounted to UAH 559.3 million and foreign currency government bonds some $ 107.087 million.

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UKRAINIAN BANKS CLOSE 251 BRANCHES IN Q3

Ukrainian banks in July-September 2020 closed 251 structural divisions, as of October 1 their regional network consisted of 7,329 branches.
According to data posted on the website of the National Bank of Ukraine (NBU), in the third quarter, Oschadbank ceased the operation of 166 branches (reducing their number to 1,931), PrivatBank some 83 (to 1,750), TAScombank 11 (to 87), Kredobank five (to 83).
In addition, Ukrbudinvestbank (to 47) and UkrSibbank (to 278) closed four branches in the last quarter, the regulator noted.
It is also indicated that in July-September this year, state-owned Ukrgasbank opened 21 offices, expanding its regional network to 269 branches, A-Bank opened five branches (to 235) and Megabank (to 153) and IBOX Bank (to 42) opened three branches each.
According to the National Bank, as of October 1 Oschadbank remains the leader in terms of the number of branches (1,931), PrivatBank ranks second (to 1,750), Raiffeisen Bank Aval ranks third (456), UkrSibbank is in the fourth place (278) and Ukrgasbank is fifth (269).

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STATE-CONTROLLED PRIVATBANK TOPS LIST OF MOST PROFITABLE BANKS IN UKRAINE

State-controlled PrivatBank in January-May continued to top the list of the most profitable Ukrainian banks, declaring UAH 19.62 billion of net profit, while state-owned Ukreximbank recorded the largest loss, as a month earlier, of UAH 1.59 billion.According to the National Bank of Ukraine (NBU), Oschadbank (UAH 3.56 billion) ranked second in the list of the most profitable banks, Raiffeisen Bank Aval (UAH 1.7 billion) ranked third. FUIB is in the fourth position (UAH 1.13 billion), and Citibank (UAH 759.66 million) is fifth.
According to the central bank, in January-May 2020, Bank Credit Dnipro ranked second (UAH 245.89 million) in terms of losses, Prominvestbank (PIB, UAH 126 million) ranked third, Pravex-Bank (UAH 63.72 million) ranked fourth and BTA Bank (UAH 39.38 million) was fifth.
In general, in the five months of 2020, the net profit of banks increased by 23.6%, to UAH 28.96 billion from the corresponding figure a year earlier (UAH 23.43 billion).
Some 59 of 75 banks operating in Ukraine were profitable during this period, according to NBU data.
According to the statistics of the National Bank, in terms of total assets, PrivatBank (UAH 590.59 billion) ranked first for the indicated period, Oschadbank (UAH 310.78 billion) ranked second, Ukreximbank (UAH 220.71 billion) ranked third, Ukrgasbank (UAH 156.43 billion) ranked fourth, while Raiffeisen Bank Aval (UAH 100.9 billion) ranked fifth.

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