Bank Forum charter fund increase still stalled

Bank Forum (FORM) held another EGM yesterday, but its main shareholders Commerzbank (63%) and Leonid Yurushev (26%) once again did not agree on an additional charter fund increase (by 45%). The increase would put Forum in line with the National Bank of Ukraine’s requirement following stress-tests to increase its regulatory capital by at least 23%. Mykyta Mykhaylychenko: Even with the charter fund increase yet to pass, Bank Forum has a relatively healthy business: its CAR is currently 15.4% vs. the system average of 15.6% and its retail deposit inflow is well above average (+31.3% in Apr-Sept vs. 5.6%). We expect shareholders to agree to an equity increase by at least by 23% and also believe the bank will attract additional subordinated debt from Commerzbank. Bank Forum has another EGM scheduled for December 17.