Business news from Ukraine

TASCOMBANK, RAIFFEISEN BANK AVAL JOIN AFFORDABLE LOANS 5-7-9% PROGRAM – REGULATOR

TAScombank and Raiffeisen Bank Aval (both are located in Kyiv) signed an agreement with the Entrepreneurship Development Fund on Thursday, May 14, on participation in the Affordable Loans 5-7-9% government program to support small and medium-sized businesses, Director of the Entrepreneurship Development Fund Ruslan Hashev has said.
“Today we sign agreement with two new banks. These are TAScombank under 5-7-9% rates and Raiffeisen Bank Aval as participants,” he said during a roundtable conference of the Financial club on Thursday.
Hashev said that as of May 14, due to frequent refusals from banks, just 452 loans were issued under the Affordable Loans 5-7-9% program. The main reasons for the refusals were the non-compliance of the borrowers with the criteria of the program or the requirements of banks, as well as the previous ban on combining different types of support.

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RAIFFEISEN BANK AVAL PLANS TO DEVELOPE IN COMING YEARS

Raiffeisen Bank Aval (Kyiv), which earlier was a potential bank for sale, seeks to step up development in the coming years, First Deputy Board Chairman Gerhard Bösch has said. “In the past two years we showed a marked increase in Ukraine and we have ambitious plans regarding business growth in the next three years,” he said at a press conference. Bösch did not give the details of the plans. He expressed doubt that the previous plans of Raiffeisen Bank International AG (RBI, Austria) to sell the Ukrainian subsidiary are remain in force.
“I do not know if these negotiations are held. They were held in 2013 and were stopped along with the events in Maidan. In 2017, Raiffeisen Bank Aval showed itself as the most profit-making bank in the RBI group. We consider ourselves the best asset in the group, and as a rule, these assets are not sold,” he said.
Raiffeisen Bank Aval was founded in 1992. As of June 30, 2017, Raiffeisen Bank International (RBI, Austria) owned 68.28% of the Ukrainian bank’s charter capital, while the European Bank for Reconstruction and Development (EBRD) held 30%.
Raiffeisen Bank Aval ranked fifth in terms of assets worth UAH 72.108 billion among 84 operating banks as of January 1, 2018, according to the National Bank of Ukraine.

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RAIFFEISEN BANK AVAL SEES 17% RISE IN PROFIT

Public joint-stock company Raiffeisen Bank Aval (Kyiv) saw a 17% rise in net profit in 2017, reaching UAH 4.469 million.
According to an announcement on holding a general meeting of shareholders on April 27, 2018, a copy of which has been forwarded to Interfax-Ukraine, the bank’s assets last year grew by 18.4%, to UAH 66.297 billion, including UAH 36.845 million of loans issued to clients, taking into account reserves (31.6% up year-over-year), UAH 5.727 billion in investment securities (2.7% up), UAH 10.297 billion of cash and its equivalents (0.04% up) and UAH 13.428 billion of other assets (14% down).
The draft decision of the meeting envisages sending UAH 4.244 billion of net profit for 2017 to pay dividends to holders of ordinary shares.
The shareholders also plan to change the type of the company from public one to private JSC, approve the supervisory board with the following members: Martin Gruell (head of the supervisory board), Andriy Stepanenko (deputy head), Joseph Eberle, Harald Kröger, Robert Fritz, Andreea Moraru, Anna Derevyanko, Pavlo Sheremeta and Daniel Bilak (the three last one are independent members).
Raiffeisen Bank Aval was founded in 1992. As of June 30, 2017, Raiffeisen Bank International (RBI, Austria) owned 68.28% of the Ukrainian bank’s charter capital, while the European Bank for Reconstruction and Development (EBRD) held 30%.
Raiffeisen Bank Aval ranked fifth in terms of assets worth UAH 72.108 billion among 84 operating banks as of January 1, 2018, according to the National Bank of Ukraine.

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