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UkrGazBank – Dynamics and Perspective


Ukrainian banking system (UBS) includes 178 credit-financing institutions, which assets as for July 1, 2008 reached 722,6 bln dollars.

Ukrainian banking business is heterogeneous. Among this diversity a special interest cause the banks aimed aggressively at increasing their market share. Such strategy is vividly demonstrated by Ukrgazbank.

For the last six months bank net assets increased for 18%. As in the whole banking sphere such increase occurred at the expense of crediting. According to the National Bank of Ukraine information the amount of credits granted by UGB during the first six months of 2008 increased for 21,4%. During the same period UGB increased its credit portfolio for 28%.

In the period of present international financial crises a number of Ukrainian banks suffered and are still suffering the lack of resource to continue their activities in the former amounts.

One of UGB advantages is its mobility and a possibility of quick re-orientation to the internal sources of funding. It is this fact that is considered to be a guarantee of stability in the present economic situation. For the last period UGB not only preserved its position in the market of retail crediting but also significantly strengthened it (the volume of retail crediting increased 1,5 times for the last six months). In spite of high tempo of credit portfolio increase Bank’s policy is characterized by balanced and conservative approach to the credit risks level.

As a result UGB has one of the best credit portfolio quality indicators in the market. Risks covering with formed reserves in the volume of 4,5% from the general credit portfolio volume is a preventive measure of fast-growing portfolio.

The result of the bank balanced strategy is its share significant increase in the banking services market of Ukraine. The strategic plans also foresee UGB’s entry into top ten Ukrainian banks and the market share increase to more than 3%. Quite demonstrative is the bank profit increase in conversion to one share of a financial institution. For the period of 2005—2008 this figure grew 3(!) times. Today UGB clients are more than 100 000 natural and 18000 legal persons. As for salary projects we serve more than 320 000 people.

The most important indicator of UGB development is its regional network expansion — 19% from January till July. As for dynamics of its development UGB is among first three best Ukrainian credit-financial institutions. Today UGB has about 400 sales desks.


Currently OJSB ’UkrGasBank’ is one of the most reliable and dynamic financial institutions that operate successfully on the Ukrainian market of banking sector. The Bank’s tendency to a rapid development of banking products on domestic and international markets determined long-term business development, increase in principal financial parameters of the Bank and increase of customer base. The Bank increases rapidly its activity through the number of operations on the market and territorial expansion.

In December 2006, UkrGasBank made a $16m debut in international capital market by raising its first syndicated loan. A total of 8 financial institutions from 6 countries joined the transaction. The debut loan has been repaid on December 5, 2007. In June 2007 a new facility was launched and after a very successful syndication, raising 130% oversubscription, was closed at $46m. A total of 14 financial institutions from 10 countries joined the transaction. In December 2007 the $20m club deal was successfully closed. A total of 9 financial institutions from 6 countries joined the transaction.


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