Ukrsotsbank Shareholders approved increasing of the financial institution authorized capital by UAH 200 million

During the General Meeting of Shareholders of Ukrsotsbank, held in Kyiv on April 28, 2009, it was decided to approve increasing of the authorized capital of the financial institution by UAH 200 million. In general, the capital of Ukrsotsbank increased by UAH 500 million since at the nominal value of 10 kopecks per share they were sold for 25 kopecks per share.

“The decision to increase the bank’s capital was approved in the consequences of stress-test of the NBU — says General Manager, the First Deputy Chairman of Ukrsotsbank, Gianni F. Papa. — Results of the test were positive enough for our bank but the regulator still proposed capital increase by half a billion of UAH. Prompt reaction to the decision of the NBU is vivid evidence of all obligations to Ukrsotsbank of UniCredit Group”.

According to Chairman of Ukrsotsbank, Borys Tymonkin, the increase of the authorized capital by UAH 200 million and Tier 1 capital by UAH 500 million will positively affect hryvna liquidity and will allow the bank have no problems with the implementation of regulatory requirements in future.

“We are a part of a strong, profitable and authoritative international Group that itself is a significant factor for our reliability and stability for clients — says Borys Tymonkin. — Thanks to the support of the main shareholder — UniCredit Group — our bank which until now also had no problems with capital adequacy even more strengthen its positions which, I am sure, will inspire additional confidence factor in our existing and potential investors. By the way, we were stable in March and in April our deposit portfolio increased. We believe that the tendency of the deposits growth will continue. Once we see that within three to four months that the deposits of individuals grow we will continue active crediting”.

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 490 offices – 463 off-balance offices and 27 regional branches. The number of employees exceeds 10 000.

As of January 1, 2009:

• Net assets - UAH 49.695 billion
• Loan portfolio - UAH 43.689 billion
• Funds of legal entities deposited in the Bank’s thrift and current accounts - UAH 6.841 billion
• Funds of individuals deposited in the Bank’s thrift and current accounts - UAH 7.316 billion
• Capital - UAH 5.176 billion 
• Net profit - UAH 795 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.