UKRSIBBANK BNP Paribas Group I quarter 2017 results

UkrSibbank BNP Paribas Group posted a pre-tax profit of UAH 310 M in the 1^st Quarter 2017

After a progressive increase of the positive bottom-line in the last 2 quarters of 2016, UkrSibbank confirms the efficiency of its business model by posting a net profit before tax of 310 M UAH in the Q1-2017.

In the continuity of the strategy implemented during 2016, UkrSibbank kept its overall loan portfolio stable during the first 3 months of the year. The bank continues to invest selectively in its core segments Corporate, Premium and Personal Finance. The high solvency and the strong level of liquidity both in FX and local currency generated by its diversified customer base enable the bank to deliver best-in class services and products to its clients.

The corporate loan portfolio remained relatively stable while Personal Finance activities increased steadily. The individual FX loan portfolio continued to shrink thanks to the various initiatives of conversion into local currency. These successful campaigns launched mid 2016 enabled the bank to reduce the remaining risks related to this legacy portfolio, hence the cost of risk dropped significantly in Q1-17 compared to previous quarters.

Despite the continuous decrease of interest rates during the last quarters, the bank managed to keep a relatively stable quarterly Net Banking Income around 1,1 Bn UAH while keeping its expenses under control. Overall, the bank generated a gross operating result of 561 M UAH in the first quarter. Thanks to the decreasing level of provisions, the profit before tax increased significantly to 310 M UAH while the net profit reaches 244 M UAH, generating a return on assets after tax of 2.2%.

At the end of Q1, the solvency is above 20% for a minimum of 10% and the cost/income ratio is stabilized around 50%.