Ukrsotsbank Reports 2006 IFRS Financials

Ukrsotsbank (USCB: HOLD) released its 2006 IFRS financial results, posting a 63% yoy increase in assets to USD 3.4 bln, while loans increased 79% yoy to USD 1.0 bln. Ukrsotsbank posted 2006 net interest income of USD 120 mln (+72% yoy), net fee & commission income of USD 80 mln (+24% yoy) and the bank’s total revenues were up 40% yoy to USD 224 mln. Operating costs increased by 34% yoy to reach USD 160 mln, bringing the bank’s operating income to USD 84 mln (+23% yoy). Loan loss provisions doubled to USD 21 mln, still allowing net income to grow 60% to USD 46 mln. Alexander Viktorov: Everything, except the level of provisions, was generally in line with our forecasts. The higher level of provisions reflects the bank’s aggressive expansion into the retail segment and the more conservative methodology employed by auditors.