August 4, 2016
Hungarian OTP Group may become a buyer of Prominvestbank, which is the subsidiary of the Russian Vnesheconombank. Thus VEB will get rid of the Ukrainian assets, as its strategy intends, while OTP Group will cheaply expand its presence in the Ukrainian banking market.
According to the analyst estimates, the bank may be sold with the price to book ratio of 0,2-0,3. According to the Prominvestbank IFRS report, its equity as at 30 June 2016 amounted to UAH 6,3 billion Thus, Prominvestbank assessment may amount to UAH 1.3 billion - UAH 1.9 billion or USD 52.4 million - USD 76.6 million, based on the NBU rate on the August 4, 2016.
"Prominvestbank" finished 2015 with negative equity (UAH 12 billion) as a result of the losses for the year in the amount of UAH 20 billion, caused mainly by new NPL reserves. AUAH 50.1 billion loan portfolio out of the UAH 59 billion loans granted has signs of NPL. Vnesheconombank was forced to support the bank by converting UAH 20 billion of its deposits in the bank’s equity in February 2016.
OTP Group owns the largest Hungarian bank OTP Bank, with a market share of 25.6% in Hungary. In addition, OTP Group has subsidiaries in Russia, Serbia, Croatia, Slovenia, Bulgaria, Slovakia, Montenegro and Romania.