OREANDA-NEWS. October 27, 2010. Ukrsotsbank published its 3Q2010 financial results on October 26, posting a net income of UAH 6mn in 3Q2010.

The bank’s net interest income of UAH 745mn grew by some 2.3% qoq driven by significant decline in interest expenses (-10.4% qoq). Fee & Commission income strengthened by 9.8% to UAH 133mn  while operating expenses sank by 5.9% qoq. Impairment charge grew by 19.4% qoq to UAH 644mn.

On the balance sheet, total assets remained virtually flat, adding 0.7% qoq. Loan book contracted by 1.1% qoq to UAH 38,046mn on loan repayments and that allowed the bank to raise its cash (+7.8%) and investment securities (+28.0%) holdings. The bank’s LLR increased to UAH 6,200mn, a 11.8% growth qoq. Deposits added 4.8% qoq and now stand at UAH 14,728mn. 

Millennium Capital: the results published are POSITIVE for USCB UK. First, net interest income growth outperformed our estimates by 1.2% (UAH 745mn reported vs UAH 736mn expected) on the back of surprisingly low interest expenses (-10.4% qoq) that outweighed the drop in interest income (-3.6% qoq). Second, both commission and other income appeared above our expectations while operating expenses were down. Third, the resulting profit before provision turned nearly 13% above our estimate (UAH 637mn actual vs UAH 566mn expected). Higher impairment charges were in line with the bank’s provisioning policy. The only negative point we find in the published results is that the bank has failed to restart lending in 3Q2010 in contrast to what we had expected.