First Ukrainian International Bank, which is number eight by assets in Ukraine, announced its net profit for 3Q12 of USD 8 million.

News: First Ukrainian International Bank, which is number eight by assets in Ukraine, announced its net profit for 3Q2012 of USD 8 million (-25% Q/Q), as the result its net profit for 9M12 is USD 24 million (+21% Y/Y; ROE 6%). The loan portfolio grew by 3% Q/Q and from the beginning of the year through both loans to corporate (+2% Q/Q and +4% from the year beginning) and individual customers (+6% Q/Q and no change from the year beginning). The deposits increased by 6% Q/Q (-12% from the year beginning) due to new individual (+3% Q/Q and +13% from the year beginning) and corporate deposits (+10% Q/Q, but -32% from the year beginning). The net interest margin increased by 0.4 p.p. Q/Q to 6.0% (NIM for 9M12 5.6%, -0.5 p.p. Y/Y); C/I ratio is up by 1 p.p. Q/Q to 50%; cost of risk ratio is up by 0.3 p.p. Q/Q to 3.6% (3.1% for 9M12, -3.5 p.p. Y/Y), problem and bad loans (as classified by the NBU) decreased by 4.5 p.p. to 16.6% of the loan portfolio (-19% Q/Q in absolute values). The CAR grew by 1.1 p.p. Q/Q to 16.6% at the end of 3Q12 (Bank).

Anastasiya Tuyukova, Chief Analyst of Dragon Capital The performance results of FUIB seem to be highly positive, especially taking into account the tough situation in the domestic banking market. The Bank managed to build up both its loan portfolio (+3% Q/Q) and the deposit base (+6% Q/Q). The net profitability slightly declined versus the previous quarter (ROE for 3Q12 is 7% versus 9% for 2Q12) as the result of allocations towards impairment of securities, nevertheless it is still above the average ROE in the sector. The Loans/Deposits ratio remained above the market average and was 95% (-2 p.p. Q/Q). The drop in the problem and bad loans of 19% (at least as classified by the NBU) happened to be a true surprise. Also, we view positively the growth in the CAR of FUIB (+1.1 p.p. Q/Q to 16.6%) and increase in the liquidity cushion.

Source: financial information portal Fixygen