The National Bank reported that as of the beginning of November, the overall capital adequacy ratio of Ukrainian banks was 25.3%, compared to the minimum acceptable value of 10%, indicating a relatively stable situation in the Ukrainian banking system. Among individual banks, Raiffeisen Bank has a capital adequacy ratio of 27.8%, Credit Agricole Bank 28.7%, and A-Bank 23.8%. A notable underperformance compared to the system average was observed in UkrEximBank, with a capital adequacy ratio dropping to 11.8%. There is a high likelihood that UkrEximBank will require recapitalization from the government. With the nationalization of Sens Bank, state-owned banks now constitute 53% of the banking system’s net assets. The National Bank noted that lending to the real sector of the economy is mainly occurring within the ‘Accessible Loans 5-7-9%’ program, forming over 40% of the gross portfolio of hryvnia corporate loans at the end of the third quarter.
On the Ukrainian Exchange, indicative quotes for Raiffeisen Bank (BAVL) shares increased to the range of 26.0 - 35.0 kopecks (bid/ask) after the bank reported a net profit of UAH 3.0bn (4.9 kopecks per share) for the third quarter. On the downside, CentrEnergo (CEEN) dropped by 7.7% to UAH 6.00 (MCap USD 59mn).
Among Ukrainian agro companies, there was a mixed stock performance, with Kernel (KER) declining by 1.1% to PLN 7.16 (MCap of USD 527mn) while Astarta (AST) rising by 1.4% to PLN 28.95 (MCap of USD 177mn). Shares of poultry producer MHP (MHPC) were flat at USD 3.33 (MCap of USD 356mn).
In the interbank foreign exchange market, the National Bank sold USD 522mn last week, allowing it to maintain the official exchange rate of the hryvnia near the 36 UAH/USD mark. The cash exchange rate for the dollar is 37.6 UAH/USD.
STOCKS IN THE NEWS
- Raiffeisen Bank Boosts Net Profit by 2.5x YoY to USD 168mn in 9M2023 Translating Into Profit of 10 kopecks per Share
The National Bank of Ukraine has opened a special fundraising account to support the Armed Forces of Ukraine. Please find more at the National Bank’s official website under the link below:
www.bank.gov.ua
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