Alfa Bank Ukraine EGM OKs additional share issue

Alfa Bank Ukraine shareholders, at an EGM on November 30, approved going ahead with an additional share issue, as a result of which the bank’s charter fund is planned to increase 25% to UAH 3.7 bln. Subscription is set to run from January 15 to March 30. Alfa Bank Ukraine was Ukraine’s #7 largest bank by assets, according to NBU statistics as of October 1. Mykyta Mykhaylychenko: As of end-3Q09, Alfa’s CAR was 13.7% (according to NBU rules), which is below the system average of 15.6%, but well above the 10% minimum requirement. This capital increase will bring Alfa’s CAR to 17.1%. Alfa’s provisions against NPLs constitute ~12% of its loan portfolio (according to UAS), which is in line with the system average. With an increase of ~50% in retail deposits in 2Q09-3Q09 (vs. the system average of +5.6%) and this capital infusion, Alfa is well positioned for growth and gaining additional market share as soon as local markets stabilize and get back on track for faster growth in 2H10.