UkrSibbank’s financial performance 2012

Thanks to improvements in business activity as well as cost control measures UkrSibbank achieved a UAH 20 mln profit in 2012.

Thanks to improvements in business activity as well as cost control measures UkrSibbank achieved a UAH 20 mln profit in 2012.

“The 2012 target for UkrSibbank was to improve efficiency of its banking activity in Ukraine’s challenging economic environment as well as to continue restructuring the balance sheet still affected by the consequences of the 2008-2009 crisis. Thanks to the strong support of its shareholders UkrSibbank further reduced the amount of negatively classified assets, increased new loan production in the Corporate and Retail segments and maintained a solid client deposit base despite market turbulences,” said Philippe Joannier, the Chairman of the Management Board at UkrSibbank BNP Paribas Group.

2012 was the first year after crisis when Corporate lending activity grew with the focus being mainly on the major international companies present in Ukraine and export driven corporates. Retail lending was developed as well with the launch of new products adapted to the post-crisis market conditions. The major part of the loan production was done in local currency, existing Retail performing foreign currency loans being gradually repaid by the borrowers.

UkrSibbank succeeded in changing the currency structure of its Retail deposits while keeping the total amount stable: UAH balances increased by 15 %. Servicing of Retail clients was improved thanks to new packaged products, Internet banking and sales channels development.

Total assets amounted to UAH 25 bln as at the end of 2012 (UAH 6 bln less than in 2011). The assets decrease was mostly the result of the negatively classified assets reduction efforts: the level of negatively classified assets went down from 16% to 10% during 2012. Risks were kept under control with cost of risk amounting to UAH 38 mln for the year.

UkrSibbank’s shareholders are positive about the Bank’s stability and further development. With the active shareholders’ support, the Bank will go on with its present strategy.

Philippe Joannier highlighted the following priorities of UkrSibbank for 2013: “Growing client deposits in Hryvnia remains a strong priority for 2013 both for Corporate and Retail segments. Corporate lending is expected to grow (focused on agricultural segment in addition to multinationals and major local clients), short-term Retail financing in local currency will be further developed while maintaining strong risk control. Negatively classified assets are to be kept below 10% of the total risky assets. Efficiency improvement thanks both to revenue increase and cost reduction is the target for 2013”.

It is worthwhile mentioning that positive dynamics of financial results continues in 2013. By the end of the first quarter of the current year, the net income of UkrSibbank BNP Paribas Group reached UAH 6 mln.

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