OREANDA-NEWS. October 20, 2009. In 9M09, the Net Income (NI) of Megabank < MEGA UZ U/R > was UAH 1.4mn (UAH 0.3mn in 3Q09). At the same time, Forum Bank < FORM UZ U/R > registered a loss of UAH 424mn in 9M09 (UAH 140mn in 3Q09).  In 3Q09, MEGA Bank's retail deposits fell by 3.1% to UAH 829mn, while corporate deposits grew 12.1% to UAH 620mn. Meanwhile, FORUM's both retail and corporate deposits rose by 6.4% and 14.3% to UAH 4.8bn and UAH 2.4bn, respectively. Both MEGA and FORUM banks increased the amount of loans extended by 0.1% and 4.2% to UAH 2.4bn and UAH 17.2bn, respectively.

Millennium Capital sees the news to be neutral for both of the banks. The improvement in MEGA’s financial results can be explained by the revaluation of the foreign loans (USD 35mn) that provided to the bank by the international organizations in 3Q09. Moreover, the bank handled low reserve assignments, since only 35% of MEGA’s loans were denominated in the foreign currency in 1H09. At the same time, FORM’s foreign currency loans accounted for 76% in the total loans (in 1H09), which, related to the NBU foreign currency position requirement, forced the bank to make significant transfers to the reserves. Overall, Millennium Capital sees that both of the banks have strong support from their parents, which ensures their financial stability in the future.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of tickets selling for its flights due to high arrearage to the creditors of the company.