Based on results for 2022 Raiffeisen Bank Ukraine became TOP3 for clients’ funds and one of the leaders in lending and FX operations
Raiffeisen Bank Ukraine finished 2022 with UAH 1.5 b profit*, which is 3 times less than the profit for the pre-war year, which constituted UAH 4.6 b.
Customers’ trust, leading positions on the market, efficient management of income, risks and expenses led to the increase of operational profit of Raiffeisen Bank for 2022 almost twice up to UAH 11.4 b.
At the same time, the Bank increased expenses for provisions to cover possible credit and operational risks caused by war by UAH 9.5 b. The share of non-performing loans has increased during the year and resulted in 14% of portfolio. The Bank assesses that unearned income from commission fees and interest transactions, in particular due to cancellation of commission fees and repayment holidays constitutes UAH 400 m. It led to the decrease of net profit for 2022.
The Bank is adequately capitalized and complies with all norms of the National Bank of Ukraine. In particular, the capital adequacy ratio amounts to 18.6%, whereas the minimal norm set by the regulator constitutes 10%. Net stable funding ratio constituted 171.8% in comparison with the norm of 90%.
During the year the bank’s liabilities portfolio increased by 35% due to the funds both of private individuals and legal entities. It allowed to increase the bank’s share on the liabilities market from 7.0% to 7.8 %, which proves one more time the increase of the trust to the Bank. The Bank improved its market position based on this indicator and got from 4th place to 3rd place.
Under the conditions of war, the total loan portfolio increased by 1% and reached UAH 71.39 b. Raiffeisen Bank Ukraine focused its efforts on lending of industries that are critical for the country, in particular, agriculture, logistics and retail trade, pharmaceutics and fuel supply. In 2022 the bank has disbursed new loans for the amount of UAH 10 b using own funds and participating in governmental programs. The Bank holds second place in the volumes of the concluded loan agreements under the program “5-7-9%”.
The Bank traditionally holds leading position in terms of FX cash and cashless transactions. To tackle the challenges of the wartime economy, Raiffeisen Bank increased the import of cash foreign currency to the country by 4 times, which allowed the market to correct the disbalance between the demand and supply. The Bank also played an important role in the return to Ukraine of more than 1.2 b cash hryvnias, which Ukrainians exchanged abroad for local currencies.
In 2022 Raif purchased from its customers US dollars by 2.5 b more then sold and it is 4 times more than in 2021. Most of this currency the Bank sold at interbank exchange rate, which respectively decreased the need of the NBU to sell the currency from gold reserves of Ukraine.
The bank defined the safety of customers and employees, uninterrupted operations and humanitarian assistance to the people affected by the war as the Bank’s priorities for 2022. The investments into the business continuity reached UAH 370 m. The Bank was one of the first banks to migrate all customer transactions to the cloud, having fully ensured the safety of customer transactions and data. 42% or 120 of the Bank’s open branches are equipped with power generating units and means of communication for servicing of customers in case of power outage.
In 2022, with the size of the retail network Raiffeisen Bank Ukraine ranked the third, respectively - or more than 300 operating branches, about 1,500 ATMs and more than 27,000 POS-terminals.
During the year Raiffeisen Bank supported its employees and their family members, by increasing staff support costs by UAH 271 m, including for the financial assistance, additional remuneration, evacuation and accommodation, as well as keeps paying upon its own initiative salaries to 150 conscripted employees of the bank.
Raiffeisen Bank Ukraine allocated UAH 220 m of own funds to the humanitarian assistance for the people that were affected by the war, as well as accumulated the funds in the amount of UAH 370 m, which were sent by the customers via Raiffeisen Online to the benefit of charitable funds.
In 2022, Raiffeisen Bank Ukraine transfered UAH 1.9b in taxes and other fees to the state budget.
Raiffeisen Bank Ukraine works devotedly under the conditions of martial law and ensures the stability of banking systems and fully performs its obligations to customers, employees and the state.
* Preliminary results according to the International Financial Reporting Standards (IFRS)