OREANDA-NEWS. November 15, 2010. Italian Unicredit Group has decided to merge its Ukrainian subsidiaries, Ukrsotsbank and Unicredit Bank. The timeline is yet to be determined, although 2011 is rumored to become a year of consolidation. Meanwhile the banks undergo due diligence.

Millennium Capital regards the news as neutral for USCB. With regard to the market share, UniCredit Bank (0.9% of total sector assets) yields to Ukrsotsbank, which occupies 4.7% of the total sector assets. The merger may positively affect the ranking of the newly founded institution allowing it to outpace Ukrsibbank (4.7% of assets, ranking 5th among Ukrainian banks). At the same time, the banks’ merger may trigger high restructuring costs worsening cost-efficiency of Ukrsotsbank. However, Millennium Capital does not expect any operational overhangs for the future integrated bank given possible parental support by UniCredit Group and a strong financial health of Ukrsotsbank.