Ukrsotsbank Sets Net Profit Target of UAH 500 mln in FY11
OREANDA-NEWS. February 08, 2011. Ukrsotsbank has set a bottom line target of UAH 500mn for 2011, according to a recent interview with the bank’s CEO Borys Tymonkin. He also stated the bank could earn solid UAH 1-1.5bn once the situation with provision expenses stabilizes. With respect to Unicredit plans to merge its Ukrainian subsidiaries, Mr. Tymonkin projected the closure of the deal by the end of 2011.
Millennium Capital regards this news as POSITIVE for Ukrsotsbank. The audacious plans of the bank’s management to generate UAH 500mn of net profits in 2011 (vs UAH 29mn in 2010) are quite feasible given more relaxed provisioning policy. As for the long-run, we expect Ukrsotsbank net earnings to be closer to the upper end of the range provided by the management (UAH 1.5bn in 2012).