OREANDA-NEWS. September 23, 2010. Investment Companies Dragon Capital and ‘Prospect Investments’ have confirmed their recommendations of taking up shares of Ukrsotsbank.

Investment Company (IC) Dragon Capital has confirmed its recommendation of taking up Ukrsotsbank shares. Analytics point out that bank has demonstrated high operational efficiency previous year due to modernization of its IT system, bank branches restructing and personnel optimization. Cost/income ratio has made up 38%. That is one of the best markers in the bank market. Ukrsotsbank was among several banks, that had received profit in 2009. That was equal to USD 22.3 mln. As it was indicated by Dragon Capital, net interest margin of the Bank reached 6.3% in 2009. According to their expectations bank is going to raise return on equity (ROE) from 3% in 2009 to 11% in 2011 and to 21% in 2012. Capital equity ratio of the bank had made up 22.7% by the end of previous year. In 2009 bank strengthened its capital positions by increasing capital to USD 65 mln and involving USD 100 mln of subsidized credit from European Bank for Reconstruction and Development (EBRD). Thus, the Bank is sufficiently capitalized to neutralize the risk of worsening asset quality. Ukrsotsbank remains the best investment recommendation in financial sector, due to high operational efficiency and prospects of asset quality improvement in 2011, according to the results of the first half-year of the year.

IC ‘Prospect Investments’ also recommends taking up shares of Ukrsotsbank. In the long run of the second half-year the Bank demonstrated quite good financial results. Its net interest income has doubled from UAH 721 mln to UAH 1449 mln. Its net profit has grown from UAH 1.5 mln in the first quarter to UAH 17.8 mln in the second quarter.