ProCredit Bank: A Different Kind of Bank

  • 13 May 2005
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86, Bozhenka Str. Kyiv, 03150
Tel./Fax: +(380) 44 490 60 80 / 81
International, development-oriented and commercially successful

ProCredit Bank Ukraine is a member of an international network. What advantages does this create for the bank and its clients?

ProCredit Bank Ukraine belongs to an international group consisting of 19 financial institutions. The regional network is made up of ProCredit Bank Ukraine and the nine other ProCredit Banks in Eastern European countries, namely Albania, Bulgaria, Georgia, Moldova, Kosovo, Serbia, Bosnia and Herzegovina, Romania, and Macedonia. As part of the regional network, ProCredit Bank Ukraine benefits from the steadily increasing cooperation between these institutions. Staff exchanges and cross-border seminars ensure that best practices are quickly shared across the region, thus accelerating institutional development and enhancing the quality of the banks' services for customers.

The activities of the group's member institutions are guided and supervised by the Frankfurt-based company ProCredit Holding and the consulting company IPC. This centralised management makes it possible to achieve synergies which have a positive impact in many areas – for example, in regard to business policies, corporate culture, risk management, and auditing, as well as ethical and other professional standards.

- What are the most recent financial results?

In 2004 ProCredit Bank Ukraine achieved dynamic growth in all lines of business and made significant progress in terms of its institutional development. The number of deposit accounts almost doubled, to 25,900, while both the volume of outstanding loans and the number of borrowers increased by just over 70%, bringing the total loan portfolio up to USD 101.5 million as of year-end.

The bank's level of profitability increased significantly during 2004, and is quite high for a young development-oriented bank undergoing a process of rapid expansion. ProCredit Bank Ukraine closed the year 2004 with a profit of USD 1.5 million, resulting in a return on average equity of 10%. That we achieved a significant increase in our operational income (102%) in 2004 was primarily attributable to the growth of our loan portfolio, which generated net interest income of over USD 10 million in the course of the year. With a portfolio at risk (loans with payments overdue more than 30 days) of only 0.8% as of December 31, 2004, and significant diversification, the quality of the loan portfolio remained at a very high level.

- What are the strengths of ProCredit Bank which will allow it to continue to achieve strong financial results and dynamic growth in the competitive Ukrainian banking sector?

ProCredit Bank Ukraine is a bank with reliable foreign capital, whose shareholders are well-known international financial organisations – EBRD, IFC, WNISEF, KfW, and the strategic investor ProCredit Holding – with a long-term orientation towards supporting the bank's activities in Ukraine.

We strongly believe that the success of our bank depends on our employees and on their sharing of ProCredit Bank's values. While providing challenging career opportunities for our staff members, we also impose a great many responsibilities, and with our strict Code of Conduct establish high professional and ethical standards, since they are the most effective means of creating a pleasant working environment characterised by respect for colleagues and customers alike.

Further key competitive advantages of ProCredit Bank are its unrivalled professionalism in lending to micro, small and medium-sized enterprises (MSME), and the confidence placed in it by investors. Over the years, the ProCredit group has gained a profound understanding of both the problems faced by small businesses and the opportunities available to them, and has developed a lending methodology tailored to reflect the realities of their operating environment.

The remarkable stability which ProCredit Bank Ukraine maintained during the challenging final quarter of 2004 gained prompt recognition in the form of an upgrade of the bank's rating by Fitch Ratings to BB- Stable. Investors' optimism is reflected in successful placements of local currency-denominated bonds on the Ukrainian market. The recent issue of ProCredit Bank bonds in the amount of UAH 50 million was oversubscribed by 3.5 times and had an effective yield of 8.95% p.a.

- Why does ProCredit Bank focus on lending to MSMEs?

All of the ProCredit Banks share a common corporate mission: to provide MSMEs with reliable access to credit and other banking services. The conventional commercial banks often focus on corporate finance and consumer lending, but tend to neglect small businesses. Yet MSMEs are seen by many economists as the main engine of growth and job creation in transition economies.

Micro lending at ProCredit Bank has developed strongly over our four years of operations in Ukraine. As of March 31, 2005, the portfolio consisted of over 23,000 loans totalling USD 111.6 million. The increased demand for our micro loans was largely the result of the streamlining of lending procedures and the easing of collateral requirements for very small loans, as reflected in particular in the success of the Express Loan, with which we were able to set new standards in lending to micro enterprises in Ukraine.

ProCredit Bank is continuing its long-term strategy of creating a high-quality and stable financial institution that contributes to regional economic growth. In line with our development orientation, we strive to ensure that our deposit and lending facilities are appropriate and accessible to a broad range of customers by offering simple savings products with no minimum deposit and by expanding our branch network.

  • 13 May 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 20,521.83 80 6.93%
2 Barclays 20,382.90 37 6.89%
3 JPMorgan 18,760.94 72 6.34%
4 Goldman Sachs 17,444.96 41 5.89%
5 BNP Paribas 16,525.22 36 5.58%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 48,528.41 214 6.32%
2 Deutsche Bank 44,075.51 161 5.74%
3 BNP Paribas 41,452.79 240 5.40%
4 JPMorgan 37,278.65 134 4.85%
5 SG Corporate & Investment Banking 36,258.27 187 4.72%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 1,607.28 5 24.01%
2 Credit Suisse 1,301.65 4 19.45%
3 UBS 970.80 3 14.50%
4 BNP Paribas 522.35 4 7.80%
5 SG Corporate & Investment Banking 444.17 3 6.64%