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02.10.08 VAB Bank released its financial statements under IFRS for the first half of 2008
The Bank ended 1H2008 with the profit of USD 2.8 million compared to USD 0.3 million for the respective period of 2007 and USD 1.8 million for the entire last year. Assets of the Bank totaled USD 1,296 million, showing the growth of 7% since YE2007.
Consolidated profit of VAB Bank (incl. VAB Leasing, VAB Express, VAB Asset Management) grew to USD 3 million (compared to USD 0.2 million for the 1H2007). Consolidated assets of the Bank increased by 8% to reach 1,318 million as of 30 June 2008.
Higher profit received for the 6 months 2008 is a result of the retail-orientated strategy pursued by the Bank for the last several years, supported by substantial investments in the expansion of the branch network, rebranding and enhancing the infrastructure and IT systems. “The resulting improvement in profitability shows that the Bank has taken the right direction. The current results are only a beginning and we believe that our profitability will improve further”, says Peter Baron, VAB Bank CEO.
The modest growth in terms of total assets for 1H2008 is attributable to the general slow-down of business in the Ukrainian banking system and international market liquidity squeeze impeding access to international market funding to facilitate the high growth rates.
The loan book of the Bank grew by 13% to USD 1,028 million. Mirroring the Bank’s strategy, the highest growth was produced in retail portfolio (26% over the first six months 2008). Subsequently, the share of retail loans in the gross loan portfolio increased to 30% from 27% at YE2007.
Customer deposits grew to USD 742.6 million. Their maturity structure has improved with the share of term deposits having increased to 78% from 73% as of YE2007.
Total capital of the Bank increased by 34% to USD 190 million for the reporting period further improving the total Capital Adequacy Ratio (CAR) to 17.8% compared with 15% as of YE2007 (Tier I ratio increased to 15.95% compared with 12.89% at YE2007). “VAB’s total capital adequacy is well in excess of the regulatory norm. Maintaining such a material safety cushion and liquidity surplus is extremely important under the current market conditions”, notes Desmond O’Maonaigh, VAB Bank CFO.
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Reference dataVseukrainsky Aksionerny Bank (VAB Bank) has been operating in the Ukrainian financial market since 1992 and belongs to the group large banks in Ukraine according to NBU. In October 2006, VAB Bank became a member of VAB Group. Branch network consists of 25 branches and 143 outlets throughout Ukraine and a representative office in Budapest (Hungary). A large international company, TBIF Financial Services (Amsterdam, the Netherlands), is among the bank’s shareholders. Total assets of VAB Bank amounted to UAH 6.7 billion as of 01 July 2008.
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