KIEV, Ukraine, July 2, 2007 (PRIME NEWSWIRE) -- Ukraine represents a significant market in Eastern Europe both in terms of population size and its growth potential, and is a key market to be in. Ukraine's banking sector is strategic by its size and one of the most dynamic in the region (+58% growth in 2006 in UAH terms), offering huge business development opportunities.
Privately owned UkrGasBank is ranked no. 17 in terms of total assets among 170 licensed banks with a market share of 1.3%. The bank positions itself as one of the major and most dynamic Tier 2 banks in Ukraine with assets of USD883m and equity of USD94m as of end 2006.
The Bank's dynamic growth and evolution could be demonstrated by these charts, which can be viewed at: http://media.primezone.com/cache/8141/file/4337.html
A sizeable player in the Ukrainian banking market with nationwide network coverage, UkrGasBank offers potential strategic partners an excellent growth platform. The Bank's development was particularly impressive in 2006, following its strategic re-focus in late 2005 on retail banking with individuals and small business. Its total assets, loans and deposits grew by 87%, 80% and 69% respectively compared to 58%, 72% and 37% growth rates for the banking sector as a whole. In the meantime, sustained business growth is ensured by a heavy emphasis on enhanced risk management policies.
UkrGasBank is a customer-oriented bank with a large base of corporate and individual customers. On the corporate side, the Bank continues to diversify its client base by controlling its share of corporate business and focussing on the dynamic SME market on the basis of innovative products and enhanced loan origination procedures.
In the booming retail segment, UkrGasBank has been particularly successful in attracting a growing volume of retail deposits, achieving a better than average market position (no. 13 ranking and 1.8% market share according to the AUB).
The Bank has one of the largest distribution networks among its peers and is planning to reach 250 points of sale by July 2007. In order to increase the network's "capillarity" and support the newly developed retail-oriented strategy with increased product penetration per client and retail lending, UkrGasBank plans to open a new type of small non-cash outlets ("mini-offices") in densely populated areas. In order to maintain high service quality and comply with regulatory requirements the Bank imported up-to-date information technologies and implemented the latest institutional practices to manage risk.
The young ambitious well-educated management team has proved its efficiency by leading the transformation of the Bank into a large universal bank with truly nationwide coverage, meeting international standards and world's best practices. In 2006, the Bank has succeeded as one of the first Ukrainian banks to enroll into the International Finance Corporation's "Corporate Governance in the Ukrainian Banking Sector" project. Assisted by EU TACIS and IFC-sponsored consultants, the Bank, by appointing two experienced international bankers as independent members of the Supervisory Board and reorganising its overall management structure, has been successfully implementing new corporate governance philosophy, based on best international practice and experience. The Supervisory Board established an Audit Committee and Corporate Governance Committee both of which are Chaired by the Independent members.
UkrGasBank's transparency and new public information policy is reflected in its internationally audited accounts and improved ratings as well as enhanced dialogue with the public. The Bank is audited by Deloitte & Touche and publishes IFRS accounts since 1997. In 2006, the Bank was assigned the following ratings by Moody's Investors Service: B2 long-term/Not Prime short term foreign currency deposit rating and E+ financial strength rating. In addition, the Bank was assigned the uaBBB+ long-term credit rating (national scale) by Credit Rating, a local agency.
In December 2006, UkrGasBank made a debut in international capital market by raising its first syndicated loan. A total of eight financial institutions from six countries joined the transaction.
In March 2007, the Bank was the first Ukrainian bank to issue UAH-denominated mortgage bonds within the framework of the USAID-sponsored "Access to credit initiative" program.
In 1H 2007, UkrGasBank intends to enter capital markets with new syndicated loans. Furthermore, in 2H 2007, the Bank intends to strengthen its presence on the markets with a USD100 m Eurobonds issue and will seek to obtain a second international credit rating.
UkrGasBank proudly positions itself as a new generation of Ukrainian banks -- ambitious in growth and prudent on risks, focused on enhancing its competitive strengths and fully understanding challenges and opportunities, transparent and well governed, reliable to its clients and partners, bullish on Ukraine and its future.
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