F&C Bank to boost charter fund 20%

Finance & Credit Bank shareholders will vote on whether to go ahead with a 20% charter fund increase to UAH 2.4 bln via an additional share issue at an AGM scheduled for September 2, Interfax reported this morning. Finance & Credit Bank was Ukraine’s #14 largest bank by assets as of July 1, according to National Bank of Ukraine statistics. Mykyta Mykhaylychenko: This demonstrates desire and ability of the bank’s owners to support it during the crisis and will bring F&C’s Equity to Total Assets ratio to 15.3% vs. the average of 13.1% for the group of the largest banks (excluding Ukrprombank and Nadra Bank). Noteably, F&C Bank is less conservative in its accumulation of provisions against loan losses compared to other banks: its reported ratio of loan provisions to its loan portfolio was 6.6% vs. the leading banks’ average of 9.3% as of the end of June 2009.