Ukrsotsbank Chairman, Borys Tymonkin predicts that each of the TOP-5 banks to reach 8-th percentage market share over the first 3-4 years

Chairman of Ukrsotsbank, Borys Tymonkin predicts that each of the TOP-5 banks to reach 8-th percentage market share over the first 3-4 years.

"In our view, the TOP-5 banks will get closer to 8% share of the market due to more fierce competition. And it will happen in some three or four next years. Some financial institutions including us will rise up more aggressively by "pinching off" little by little market share from those who now is higher - believes Borys Tymonkin. - Also, when told that the share of the TOP-10 makes less than 50% of the market, do not forget that inside it shares distributed quite unevenly. If estimate the amount of market share of the TOP-5 rounded even roughly: Privatbank - about 9%, "Raiffeisen Bank Aval" – 7%, Ukrsibbank – 6%, Ukrsotsbank and Ukreximbank - 5% each, amounting to approximately 33%. We forecast that there will be 40%. Increase in 7% for three-four years - is appreciably, although we are not talking of any cardinal break of the existing market trends. And further there will be very tough "who is the first" struggle among these players, and their market positions will be sufficiently close. If, of course, further changes in the composition of the shareholders of banks, some global changes will not happen".

Note

JSCB Ukrsotsbank was established in September 1990. At present, it is among the largest banks in Ukraine. The branch network of the Bank comprises 508 offices – 481 off-balance offices and 27 regional branches. The number of employees exceeds 10 000.

Financial summary, as of 1 April, 2008:

• net assets amounted to UAH 34.072 billion
• loan portfolio – UAH 27.645 billion
• the funds of legal entities deposited on thrift and current accounts make UAH 7.178 billion.
• the funds of individuals reached UAH 7.967 billion.
• the Bank capital amounted to UAH 3.324 billion.
• net profit -UAH 130 million

On 23rd of January 2008, UniCredit Group finalized the acquisition of 94,2% total shareholders capital of Ukrsotsbank from the group of investors that were represented by international consulting company EastOne (shareholders’ saler) through Bank Austria Creditanstalt AG (BA-CA), which is responsible for commercial banking activity in CEE.