OREANDA-NEWS. November 12, 2010. Unicredit Group decided to consolidate its assets in Ukraine, Ukrsotsbank (UX: USCB UK) (#6 bank by asset size in Ukraine) and Unicredit Ukraine (the country’s #26th bank in terms of assets), Unicredit’s media department said, according to Kommersant Ukraine this morning.

Concorde Capital: we see the merger negatively impacting Ukrsotsbank/the merged bank’s performance in the short-term as the consolidation process is usually messy and may result in the loss of some clients. In the longer term, though, consolidation with purely corporate client oriented Unicredit should enhance Ukrsots’ ability to generate profits. Direct implications for Ukrsotsbank’s equity value will depend on the technicalities of the deal and whether it will be accompanied by an additional capital injection (Ukrsotsbank is the only traded bank in Ukraine that has not received a capital injection since the outset of the financial crisis in late 2008; its CAR of 16.1% is now well above minimum required 10%).