OREANDA-NEWS. April 22, 2011. Ukrsotsbank, one of the largest Ukrainian banks, reported its 1Q11 performance on Apr 20 after the close of the session. The bank raised the top line by 11.2% yoy to UAH 902mn due to the solid other income, while NII and fees remained static. This quarter operating expenses were up 14.8% yoy to UAH 325mn or +330bps to 4Q10 dynamics. The bank reported a sturdy pre-provision profit of UAH 577mn, up 9.3% yoy vs a slump of 4.3% in 4Q10 and high double-digit losses previously. The resulting net profit was at UAH 2mn.

Millennium Capital deems the news is NEUTRAL for Ukrsotsbank. Although the bank delivered a strong revenue momentum, a slump in the gross loans that were down 0.8% qoq was a marginally negative touch on overall picture. In addition, the bottom line was scant black due to heavy provisioning.