OREANDA-NEWS. April 28, 2011. Raiffeisen Bank Aval, the second largest Ukraine’s non-state bank, published its 1Q11 financials. The bank raised its top line by 5.5% yoy to UAH 1,377mn due to stronger NII and fees income, reported the press-centre of Millennium Capital.

The resulting bottom line came at UAH 2mn, wrecked by climbing opex (+12.5% yoy) and heavy provisioning (a spike of 2.14x yoy).

We deem the news is NEGATIVE for Bank Aval. The showing is poor and disappointing as profit was negligible (UAH 2mn vs MFKe UAH 230mn), while gross loans contracted again (-0.2% qoq). Hence the stock may face headwinds in the coming days.