FUIB Announces Net Profit of $28 Million

First Ukrainian International Bank (FUIB) has announced its $28 million net profit under IFRS for nine months of 2012. The correspondent of IA “NASH PRODUCT” was informed so by Anastasiya Tuyukova, Chief Analyst at Dragon Capital.

“The net profit of FUIB under IFRS for nine months of 2012 is somewhat higher than its net profit under UAS (of $24 million), but the return on equity under IFRS dropped year-over-year to 10%, nevertheless it remains among the strongest results in the sector. The decline in ROE was caused by the growth in allocations towards loan loss provisions (the cost of risk ratio was 1.7% for 9 months of 2012 versus 0.5% in 2011), though they, as before, were not high against their average level in the system as the whole; as at the end of the ninth month of 2012 the provisions to problem loans ratio was 76%, rather high. The net interest margin and the cost to income ratio stood at the same level. The well-balanced funding structure of FUIB with the low level of dependency on the external wholesale funding (the Loans/Deposits ratio of 99%) and sufficient equity reinforce our positive outlook on the credit risk of the bank,” said the expert.

Source: IA Nash Product