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August 11, 2017 www.intellinews.com I Page 20
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Ukraine regulator eases forex capital controls on Eurobond purchases by banks
RBI eyes return to growth as it confirms strong second quarter
The National Bank of Ukraine (NBU) continues to gradually ease capital controls imposed by the government in the wake of the eco- nomic crisis in the country, making it easier for local banks to pur- chase foreign currency-denominated debt securities (Eurobonds) issued abroad to finance loans granted to these banks by nonresi- dents, the regulator said on August 10.
The NBU imposed capital controls in 2014, when the currency and economy went into meltdown, and is able to ease the measures now the situation has stabilised.
The banks will be allowed to raise forex loans and place forex on ac- counts abroad on the basis of the general license for forex operations (until recently, banks have been required to obtain an individual license).
Raiffeisen Bank International AG (RBI) confirmed on August 10 its guidance for strong results in the second quarter of the year.
The Austrian bank announced consolidated net profit of €367mn in April-June 2017. Clearly excited by the progress it has made during a recent restructuring effort, the Austrian lender announced on July 25 that it expected to report healthy profitability.
The data suggests RBI’s recovery from a troubled few years is ongoing. Following a fall into the red in 2014, the third-largest lender in Central and Eastern Europe implemented a restructuring programme in a bid to reduce risk-weighted assets and raise capital ratios.
Moneta Money Bank reported on August 10 net profit of CZK1.15bn (€44mn) for the second quarter of 2017, outgunning expectations significantly thanks to bond sales.
The rush by investors into local bonds ahead of the removal of the Czech National Bank’s cap on the koruna in April helped lift earn- ings at other banks in the country also, but are clearly a one off. With that element stripped out, Moneta’s pre-tax profit matches forecasts, suggest analysts at J&T Bank.
The Czech lender has continued to trim costs to counterbalance falling revenue amidst tightening competition. The bank also con- tinues restructuring following its IPO last year. US giant Genreal Electric has since sold the rest of the company on the Prague Stock Exchange, pushing aside worries that the sleepy bourse would struggle to absorb the volume.
One-off bonds boost raises profitability at Prague-listed Moneta Money Bank