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Alfa-Bank (Ukraine) Comes to the End of 1H 2016 with Profit of UAH 1.3 billion

August 25, 2016. TAG: Financial Services

Alfa-Bank (Ukraine) informs about the financial results of its activity for the first half of 2016 made up in compliance with the International Financial Reporting Standards (the IFRS). Following the results of 1H 2016, the Bank received UAH 1.3 billion profit (as compared with the loss of UAH 0.5 billion recorded in the first half of the previous year), which came as a result of the well-thought approach to managing the credit and foreign currency risks.

In the reporting period the Bank ensured that the size of its assets was consistently remaining at UAH 41.428 billion. A slight dip of nearly two per cent is attributed to the decrease in the securities portfolio and interbanking lending. As compared to the start of the year, the Bank increased the volume of its loan portfolio by 5.6% to reach UAH 29.0 billion.The Bank still has a substantial volume of cash assets, which is a good ground for maintaining stable servicing of its customers; as at the end of 1H 2016 the size of such funds made up UAH 5.7 billion. As from the start of the year, the Bank’s obligations decreased by 5.6% to UAH 37.516 billion, mainly due to the return of funds to international organisations. The volume of funds drawn from other banks reduced by 26%.

Taken together, the funds of customers grew by 3.5% to UAH 26.118 billion; the retail customer funds went up by 10.8% to the level of UAH 13.649 billion whereas the corporate customer funds went down by 3.6% to the level of UAH 12.469 billion. The growth of the funds of customers may be explained by both an increased level of trust on the part of our customers who place their deposits with us and the Bank’s active steps in the capital market. Another important thing to point out is the growth of retail customer funds drawn by placement of securities in the form of certificates of deposit. The results of the first half of the year shows that the volume of funds placed using this instrument grew by 26% to stand at UAH 2.9 billion.

'In the first half of the year Alfa-Bank (Ukraine) reached profitability and preserved the sustainability of business, which evidences the efficiency of the business model chosen and the support provided by our shareholders in performing all our obligations to our customers and partners. Our many-year experience of operations both in Ukraine and in a number of other European countries, our team f professionals and our successful strategy for development of the multipurpose bank enable Alfa-Bank (Ukraine) to remain a confident leader in the industry', stressed Rushan Khvesyuk, Chief executive director of Alfa-Bank (Ukraine).

As at the end of the first half of the year, the Bank's equity rocketed by 49.1% to reach UAH 3.912 billion, as compared to the start of the year. During this period the authorised capital increased by 59.5% to stand at UAH 7.4 billion. This result is connected with the registration by the NBU in February 2016 of the new version of the Bank’s Charter after an additional issue of shares for the amount of UAH 2.8 billion took place in December 2015, which correspondingly resulted in the increase in the authorised capital of the Bank to UAH 7.4 billion. Apart from that, the Bank’s shareholder ABHU (Alfa-Bank Holding Ukraine) adopted a decision to make another contribution to the authorised capital of the Bank to increase it by UAH 114 million to UAH 7.5 billion by a private placement of shares.

Alfa-Bank (Ukraine) PJSC is a major Ukrainian commercial bank with international capital, forming a part of ABH Holdings S.A. (ABHH), a Luxembourg-based private investment holding company. The holding company has investments in a number of banking groups operating in Europe and the CIS area. Thus operating companies (banks) of ABHH are located in Ukraine, Russia, Kazakhstan, Belarus, and the Netherlands.  ABHH’s owners are Michaіl Fridman with a 36,47% stake of shares, German Khan – 23,27% (both are citizens of Israel residing in London), Aleksei Kuzmichev – 18,12%, Petr Aven – 13,76%, Andrei Kosogov – 4,08% (all three are Russian citizens residing in Moscow), as well as The Mark Foundation for Cancer Research holding a 4,03% stake. By the NBU classification, the Company falls under the Banks of Foreign Banking Groups category.

Alfa-Bank (Ukraine)

ABH Holdings S.A. (ABHH) is a privately owned Luxembourg-based investment holding company investing into several banking groups in the CIS and Europe. ABHH includes Alfa-Bank (Russia), Alfa-Bank (Ukraine), PJSC “Ukrsotsbank” (Ukraine), Alfa-Bank (Belarus), Alfa-Bank (Kazakhstan) and Amsterdam Trade Bank N.V.

Alfa-Bank (Ukraine), registered in Ukraine in January 2001, ranks among the largest banks in Ukraine. Alfa-Bank (Ukraine) operates in all key sectors of the banking sphere.