Ukrgazbank’s Net Income Up 3.3x yoy in 2007

Interfax reported that Ukrgazbank (UGZB: HOLD) increased its net income 3.3x yoy to USD 19.9 mln in 2007. The bank’s net assets grew 131% yoy to USD 2.0 bln last year, while its loan portfolio rose twofold to USD 1.1 bln. Retail loans expanded by 2.4x yoy to reach USD 285 mln and corporate loans were equally strong, rising 2.2x yoy to USD 680 mln. Customer deposits also doubled, totaling USD 1.1 bln by yearend. Alexander Viktorov: The bank’s net income was 30% higher than we expected. Balance sheet expansion was generally 10-15% above our estimates. We maintain our HOLD recommendation with a target of USD 1.32 per share. We will wait for full financials from the bank to adjust our projections and assumptions accordingly; we do not rule out the possibility of a target upgrade.