Page 46 - UKRRptSept18

8.1.1 Earnings
Ukraine's banking sector reports UAH400mn loss in the second quarter of this year after in the year's first half earning UAH8.3bn in profit.
The banking sector reports net profit of UAH8.3bn ($305) in H1 (net loss of UAH400mn in Q2 due to raising additional provisioning "by one large bank"), according to the central bank.
8.1.2 NPLs
Ukraine's state-owned banks' NPL level has remained around 60% in 1H2018, however, private banks report a jump from around 20% to 30.5%, according to the nation's central bank.
8.1.4 Bank news
Hong Kong-based Madison Pacific Trust Ltd., a trustee of for $375mn in loan participation notes of Ukraine's largest lender PrivatBank, nationalised in late 2016, has informed bondholders that the bank asks they identify their notes' beneficiary owners on the date of their acquisition. The move is part of the bank’s defence tactics against the claims of trustee, on behalf of bondholders, to repay the bonds, the trustee said in its statement. Specifically, if the holders won’t identify themselves, the bank may infer that "some or all of the notes were acquired in circumstances involving illegality." The trustee also mentioned that "no such inference is appropriate," while at the same time not ruling out that the failure of the bondholders to show up will weaken the prospects of their claim. The bondholders "should take and rely on their own independent legal and financial advice," the trustee added. PrivatBank has $175mn in loan participation notes due on February 28, 2018 and $200mn in loan participation notes due on January 23, 2018. Investors in these notes were effectively wiped out by the nationalisation of the bank at the
46 UKRAINE Country Report September 2018 www.intellinews.com