Ukrsotsbank Plans to Boost Capital

Ukrsotsbank plans to increase its equity capital to 6.5 billion hryvnias by 2010, according to the bank’s chairman of the board, Borys Tymonkin.

To increase its capital, the bank will draw subordinate loans and expand its statutory fund. Over the next few years, the bank plans to continue its policy of capitalizing profit and the using subordinated debt instruments. The bank also hopes to receive direct capital injections from UniCredit Group.

Tymonkin said that the bank’s statutory capital would grow by $150 million in 2008, by $200 million in 2009, and by $100 million in 2010.

UNIAN reference: AKB Ukrsotsbank was founded in September 1990. The bank has 27 regional offices and 458 branch offices.

As of Jan. 1, 2008, the bank’s assets stood at 31.23 billion hryvnias compared with liabilities of 28.03 billion hryvnias. The bank’s equity amounted to 3.19 billion hryvnias and its statutory capital totaled 1.02 billion hryvnias.

In 2007, the bank posted a net profit of 362.27 million hryvnias.

In January 2008, UniCredit Group bought 94.2 percent of Ukrsotsbank at a price of 1.53 billion euros ($2.2 billion).