Financials
April 21, 2011
Ukrsotsbank: 1Q11 UAS Results - Still not a surprise - The trends observable in Ukrsotsbank’s 1Q11 UAS financials have been unchanged from those seen earlier, i.e. flat level of corporate loans, declining level of retail loans, high margins and carefully calculated charge to the impairment loan loss reserve. In particular, gross corporate loans increased by 0.7% QoQ to UAH 18bn. Net interest margin was 7.3% and expected to remain so throughout 2011. The loan loss provisioning charge accounted for 95.6% of the operating profit. We still rely on the Bank’s guidance of UAH 0.5bn in net profits in 2011 and maintain a BUY rating for the stock.
