Ukrsotsbank Announces Surging Net Income, Eurobond Plans

Ukrsotsbank (USCB: BUY), Ukraine’s fifth-largest bank by assets, increased 1H06 net income by 7.1 times yoy to $36.2m, according to the bank’s chairman. He said net income would reach $50m-55m in 2006 and $60m-70m in 2007. He said the bank was planning to place a $200m-300m 5-year Eurobond later this year. Alexander Viktorov: Despite the delay of its $60m share issue and resulting problems meeting capital adequacy requirements, Ukrsotsbank’s looks set to beat our net income forecast for 2006 of $41.4m. The unblocking of the share emission and the Eurobond should help the bank maintain high growth in the second half.