Megabank Reports Strong 1H07 Results.

In 1H07 Megabank’s (MEGA: BUY) net income grew by more than 3x yoy to USD 2 mln. The increase was driven by 82% yoy growth in net interest income to USD 5.8 mln due the improved structure of the bank’s loan portfolio (the share of higher-yield retail products in the bank’s loan portfolio gew to 27%, up from 17% in 1H06). The triple-digit growth in household tariffs throughout Ukraine in 4Q06 helped Megabank to take advantage of its 11% share of the national market for communal payment processing (net fee & commission income grew by 55% yoy to USD 6.6 mln). During 1H07, Megabank posted asset growth 66% yoy to USD 300 mln, and its customer loans increased by 91% yoy to USD 213 mln.