From the beginning of the war until the middle of May, receipts to the correspondent account of Megabank (Kharkiv) amounted to UAH 1.2 billion, Head of the Supervisory Board, Board Chairman of Megabank Oleksiy Yatsenko has said.
“As for the bank’s liquidity, there is a lot of speculation on this topic. As of February 24, the balance on the correspondent account amounted to UAH 820 million. This amount is 2.5 times higher than the required reserve ratio… Megabank was working with the liquidity reserve, which was for the period of more than two months at the beginning of the war. We were settling all transactions… By mid-May, more than UAH 2 billion in payments was settled with the UAH 820 million account. There was almost UAH 1.2 billion in receipts throughout the entire period,” he said at a press conference at Interfax-Ukraine on Wednesday.
According to him, by the middle of May, the correspondent account was almost zero and there were delays in making payments. However, by the middle of May, funds entered the accounts of customers and the bank made all payments until the decision on insolvency was made.
“On the date of the decision on insolvency … it was announced that the outstanding payments were in the amount of UAH 30 million. However, the correspondent account of the bank on that day had approximately the same amount. If Megabank had not the blocked correspondent account, by the end of the day these the funds would also have been transferred,” the banker added.
As reported, on June 2, the National Bank of Ukraine decided to declare Megabank insolvent.
According to the NBU, the main shareholders of the financial institution as of January 1, 2022 were Viktor Subbotin with 60.74% (direct and indirect participation), the European Bank for Reconstruction and Development (EBRD) with 11.3%, the German development bank KfW with 11.3% , Maksym Efimov with 9.8%, Olena Subbotina with 7.8% and the International Finance Corporation (IFC) with 4.5%.
According to the NBU, as of March 1, 2022, Megabank ranked 24th in terms of assets (UAH 11.193 billion) among 69 operating Ukrainian banks.
In 2021 MEGABANK increased its credit portfolio by UAH 881 mln.
As of January 1, 2022, the total credit portfolio of the bank is UAH 8,132 bn.
Within a year it increased by 881 million hryvnias, which is 509% more compared to 2020.
In particular, 961 million hryvnias were disbursed as loans to small and medium-sized businesses in 2021. The credit portfolio also increased in the microbusiness segment. Compared to 2020, the increase amounted to UAH 97 million (214%).
– According to the Strategy for 2021-2025, the bank financed primarily micro-businesses and SMEs. Among them are enterprises of the agricultural sector, trade and industry. And microbusiness financing is one of the priorities of our bank, which is successfully implemented, – said Olena Ponomarenko, Acting Chairman of the Management Board of MEGABANK JSC.
In addition to classical credit products, small and medium-sized businesses can get affordable short-term unsecured loans from MEGABANK in the form of a credit limit on a current account, loans for investment purposes, loans under government support programs related to the COVID-19 pandemic.
Also representatives of SMEs have access to the entire range of documentary operations, letters of credit, bills avalization, servicing of foreign economic contracts, and others.
Based on the results of 2021, the retail credit portfolio also showed an increase, which is 160% more than in 2020.
Loan programs implemented by MEGABANK JSC in cooperation with international institutions to support local SMEs, finance energy efficiency projects, support export and other areas.
Today MEGABANK JSC cooperates with a number of international institutions, and the main strategic direction of the bank remains support of SMEs.
According to Olexandr Shypilov, Deputy Chairman of the Management Board of MEGABANK, since the beginning of cooperation with foreign institutions (since 2007), the bank has concluded 62 international agreements for a total of USD 366,731,000.
In particular, in 2021, the bank continued cooperation with the European investment bank within the framework of the project ‘APEX loan for SMEs and MID-CAPs’. Thanks to it additional 10 million euros were raised for the investment needs of small and medium-sized enterprises and working capital financing.
In 2022 MEGABANK JSC plans to continue working on the implementation of joint projects with international partners. Among them are Triodos, FMO (the Netherlands), BlueOrchard and responsAbility (Switzerland) and EFSE (Luxembourg), as well as launching new projects with European funds, including Incofin (Belgium), OeEB (Austria), Triple Jump (the Netherlands) Enabling Qapital (Switzerland).
– It is planned that the funds within the framework of this cooperation will be used to finance micro, small and medium-sized businesses, – said Olexandr Shypilov.
MEGABANK JSC has been operating in the financial market of Ukraine for 31 years. As of December 1, 2021, the bank serves 723,811 clients, and 155 branches operate in Ukraine. The bank’s assets amount to UAH 9,819 million.
The single counterparty exposure limit (H7, should be no more than 25%) as of March 1, was violated by Prominvestbank (82.02%), Sberbank (50.23%) and Industrialbank (49.51%), according to the website of the National Bank of Ukraine (NBU).
According to the regulator, the related party transactions exposure limit (H9, should not exceed 25%) was violated by First Investment Bank (52.02%), Unex Bank (28.17%), Megabank (27.56%) and Land Capital Bank (26.75%).
The limit on bank total long open FX position (L13-1, should be no more than 10%) was violated by Oschadbank (129.99%), Prominvestbank (114.57%), PrivatBank (95.74%) and Industrialbank (12.35%).
The limit on bank total short open FX position (L13-2, should be no more than 10%) was violated by Prominvestbank (110.36%).
JSC Megabank (Kharkiv) has raised EUR 5 million to lend to micro-, small- and medium-sized enterprises (SME), according to a posting on the bank’s website. “The management of JSC Megabank signed an agreement with a fund managed by Swiss responsAbility Investments AG, an investment asset manager, on the provision of a loan totaling EUR 5 million on December 3,” the bank said.
According to Megabank Board Chairman Oleksiy Yatsenko, the loan term is three years.
Yatsenko added that negotiations with Swiss partners began in May 2019 in the capital of Bosnia and Herzegovina Sarajevo, and before signing the agreement, Megabank successfully passed due diligence.
According to the report, the current agreement with responsAbility Investments AG is already the second for Megabank. In November 2012, two private investment funds led by responsAbility provided the bank with two three-year loans totaling $4 million to support SME.
“We repaid the loan in due time in 2015. This year we decided to deepen our cooperation. We thank to the responsAbility Investments AG team for their trust. It is important for us to get an assessment of a bona fide bank. We are working further without losing momentum,” Yatsenko said.
According to the report, since the beginning of the year, the bank concluded five transactions with international partners for a total of $20 million in equivalent, of which $11 million were for programs supporting micro-, small- and medium-sized enterprises.