SOURCE: PrivatBank

July 12, 2016 14:49 ET

Analysts Say PrivatBank's Increased Profits Show Resilient Business Model

KIEV, UKRAINE--(Marketwired - Jul 12, 2016) - Despite a turbulent Ukrainian economy, Ukraine's PrivatBank weathered the storm to post increased profits in 2015. Dr. Alexander Mirtchev, international economist and CEO of Krull Corp., a Washington, DC-based macroeconomic consultancy, stated, "With the current situation in Ukraine, these results show indications of a resilient business model. At this stage, it is important for businesses to demonstrate transparency while coupling their initiatives with positive results."

Krull Corp. focuses on new economic trends and emerging policy challenges. Dr. Mirtchev has participated in laying the foundation for market democracy, accession to World Trade Organization, NATO and the EU of several transitional economies.

Servicing a large portion of the Ukrainian market, PrivatBank leads the sector. According to the GFK Ukraine research on banking services for individuals, at the end of 4Q2015 48.4 per cent of the total number of Ukrainian banking customers used PrivatBank services. More than a third of the Ukrainian respondents (39.2 per cent) considered PrivatBank their major bank. Additionally, the research indicated that 42.6 per cent of Ukrainian corporations use the PrivatBank's services.

The bank's recently published audited 2015 consolidated annual report shows that the consolidated profit of PrivatBank grew by 11.4 per cent in the last year, and totaled UAH 275 million (more than USD 11 million).

The report was prepared under International Financial Reporting Standards (IFRS) and audited by PricewaterhouseCoopers (PwC), one of the world's leading auditing companies. PrivatBank Group's capital amounts to UAH 29,045 mln, and assets total UAH 247,934 mln. The bank's capital adequacy ratio (CAR) improved from 13.7 per cent up to 14.9 per cent in 2015 according to the Basel requirements. PrivatBank's CAR was 11 per cent, above the mandatory minimum of 10 per cent according to the regulatory requirements of the National Bank of Ukraine.