Page 45 - bne IntelliNews Country Report: Ukraine Dec17

businessmen Ihor and Hryhoriy Surkis, who won another legal battle against the bail-in of their deposits of UAH1.1bn ($41.4mn) during December's nationalisation of PrivatBank. The funds were deposited at PrivatBank by members of the Surkis family, whom the National Bank of Ukraine (NBU) recognised as related parties of the bank, owned before its nationalisation by oligarchs Ihor Kolomoisky and Hennady Bogolyubov. International creditors are also suing over their losses.
More bailed-in creditors of Ukraine's collapsed PrivatBank have sued the bank for the way their loan participation notes were wiped out a fter its nationalisation last December. Hong Kong-based Madison Pacific Trust Limited, a new trustee for $375mn in loan participation notes, as well as securities issuer UK SPV Credit Finance Plc, filed lawsuits to the London Court of International Arbitration on November 8. "These requests have been served on PrivatBank. These requests are in relation to loan agreements between PrivatBank and the issuer," UK SPV Credit Finance said in a note published by the London Stock Exchange. 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 end of last year and are seeking compensation through the courts. After the nationalisation, PrivatBank's bonds were subject to a bail-in procedure. On November 2, Madison Pacific Trust sent an acceleration of repayment notice to PrivatBank demanding the repayment of the bank’s debt.
State-owned Ukreximbank published 3Q17 results, reporting net profit of UAH729m ($28m), +76% q-o-q, which brings 9M17 net income to UAH1,465m ($55m), up from a UAH0.4bn ($16m) net loss in 9M16. Total assets (in UAHterms) dipped 1% q-o-q (+9% y/y), with net loans +1% q-o-q (+4% y/y). Customer deposits (in UAHterms) dropped 3% q-o-q (+8% y/y). NIM (based on net interest-bearing assets and in UAHterms) decreased by 0.4pp q-o-q to 1.8% (2.1% in 9M17, -0.5pp y/y). Cost of risk (annualized) stood at a positive 3.9% in 3Q17 following an identical provisioning ratio (3.7%) in 2Q17 (1.2% in 9M17, -13.2pp y/y). Cost/Income increased by 36pp q-o-q to 65% (36% in 9M17, +20pp y/y). NPLs (loans classified as “worst credit quality category”) shrank by 5.8pp q-o-q to 37.7% of total loans at end-9M17 (+1.0pp YTD), with 118% coverage (+15pp q-o-q and +5.1pp YTD). Individually impaired and past due loans remained unchanged q-o-q and YTD at 63% of total loans. Cash and cash equivalents dropped by 11% q-o-q to UAH27bn ($1.0bn) or 16% of total assets (-2pp q-o-q). Total capital adequacy ratio (NBU) stood at 16.3%, -0.7pp q-o-q and +6.4pp YTD (per Basel: 25.4%, +1.8pp q-o-q and +15.8pp YTD). (Bank)
The National Bank of Ukraine (NBU) has approved the purchase of the Lviv-headquartered middle-sized VS Bank, a subsidiary of Russia's state-owned giant Sberbank , by local banker Sergiy Tigipko, Interfax news agency on November 8. The direct buyer of VS Bank is Cypriot Bailican Limited. The move followed September's statement made by the regulator's deputy governor Yekateryna Rozhkova that the NBU has "preliminarily approved" the purchase of the lender. Tigipko, the former vice prime minister under former Ukrainian president Viktor Yanukovych, is the owner of TAScombank and Universal Bank.
Ukrainian businessmen Ihor and Hryhoriy Surkis, whose deposits of UAH1.1bn were bailed-in during December's nationalisation of
45 UKRAINE Country Report December 2017 www.intellinews.com