Oschadbank reports positive bottom line in 1H16
28 July 2016
Ukraine’s State Savings Bank (Oschadbank, OSCHAD) posted UAH 0.25 bln in net income in 1H16, an improvement from net losses of UAH 9.65 bln a year before, according to its brief financial statements filed on July 26. The improvement happened mainly due to much less loan loss provisioning (-76% yoy to UAH 1.85 bln) and smaller losses from revaluation of foreign currency (-71% yoy to UAH 1.25 bln).
The bank’s operational performance also improved as its net interest income increased 28% yoy to UAH 3.46 bln in 1H16. Its loan portfolio increased just 1% YTD to UAH 66.4 bln and its deposit base widened 30% YTD to UAH 122.9 bln. Its total assets increased 16% YTD to UAH 184.9 bln.
Alexander Paraschiy: Oschadbank’s improved bottom line and widened deposit base look encouraging. At the same time, a worrying signal is that the bank is not widening its lending activity. Most of the money raised from new deposits were accumulated on “cash and equivalents” accounts, which increased 78% YTD to UAH 40.4 bln. This may lead to a decrease in the bank’s interest income in future quarters. In any case, we are keeping our neutral view on the bank’s quasi-sovereign Eurobonds.
