News of the Bank

Stepan Chernovetskyy about results of first half year of Pravex-Bank

In accordance with results of work during first half year of 2007 PRAVEX-BANK demonstrates stable dynamics of bank activity indicators improvement — capital volume, balance currency, deposit portfolio.

Thus, during first half year of 2007 PRAVEX-BANK considerably increased balance currency which as of 01 July constitutes UAH 5,01 bln., (since beginning of the year the increase constitutes 39,9%). Speaking about deposit portfolio, it increased on UAH 117 mln for the first half year that evidences about high trust to the Bank from the side of depositors.

Also, in the first half year shareholders, due to supplementary emission of shares increased authorized capital on UAH 200 mln. (since the beginning of the year increase constituted 116%), correspondingly, regulative capital was increased and constitutes UAH 647 mln. as of current date. Besides standard of regulative capital adequacy of the Bank constituted 15,4%, that is higher than in the whole on banking system and it supposes high Bank capacity to perform in time and completely its payment liabilities before clients and contractors.

In April the Bank attracted direct international credit at the amount of USD 30 mln.

During current year interest rates both on mortgage and on car loans were and are one of the most profitable for consumers. As a result indicators of issued credits increased in all directions in comparison with analogous period of 2006: cars — 30%, and volume of issued mortgage credits increased on 115%.

For the first six months of 2007 PRAVEX-BANK switched over to scoring system of mortgage credits issuing, due to this the term of decision making by the Bank about credit provision to a client constituted 1 hour. Drawing up of credit is possible in 1 day after provision by client of complete set of documents. Besides on client desire expenses on real estate insurance, settlement-cash services and immovable property assessment can be included in credit amount.

Also, taking into account clients desires and tendency on land market, PRAVEX-BANK improved crediting terms for land purchase. Having used this service, a client can get credit at the amount of 80% from lot cost without provision of supplementary pledge. Just lot itself is provided as a pledge.

It is necessary to note that PRAVEX-BANK occupies one of the leading position at consumer crediting market.

For six months of the current year 242 thous. of consumer credits have been issued at the amount of more than UAH 523 mln. that is on 34% more in comparison with similar period of 2006.

Daily on the whole system of PRAVEX-BANK about 2 000 credits are drawn up at the amount of more than UAH 5 mln. that evidences about considerable attractiveness and utility of consumer crediting service in our Bank.

General number of issued consumer credits since 01.05.2001г. (first credit issue date) and as of 01.07.2007г. makes up — 1,128 mln. at the amount over UAH  2,376 bln.

Also, daily together with stores-partners about 100 various actions take place that says for crediting terms flexibility and properly chosen marketing strategy.

Since beginning of the year 1030 points of credit issue were installed in stores-partners of the Bank. Nowadays this index constitutes 2700 points which are situated actually all over the whole territory of Ukraine, including small settlements.

The Bank cooperates actually with all big trade networks which are specialized on issue of long usage consumer products.

PRAVEX-BANK has also a reputation as a center of profitable money transfers. In any of the Bank outlets a client can use money transfer service. Number of transfers on Western Union international money transfer system, in comparison with the similar period of previous year increased on 19,3%, MoneyGram — 10 times (the system works in the Bank since April 2006). Also we would like to note that in 2007 PRAVEX-BANK started to cooperate with one more system of international money transfers — UNIStream, which is represented with more than 25 000 service points in 85 countries in the world.

Among local money transfer systems "PRAVEX-TELEGRAPH" is the most popular due to low cost of transfers performance. Since the beginning of 2007 total transactions amount on this service exceeded UAH 3,6 mln. that is 2 times more in comparison with the similar period of previous year.

For the first half year of 2007 3,3 tons of banking metals have already been sold that is 43,5% higher in comparison with the same period of previous year.

In February of this year PRAVEX-BANK concluded contract about cooperation with the company "Shoeller-Munzhandel" about supply of collection coins from various mints of the world. For today the range is represented by more than 200 types of silver and golden coins from various mints of the world in the amount more than 2000 pieces. The cost of represented coins fluctuates from UAH 200 to 100 thous. For real connoisseurs PRAVEX-BANK offers coins which number of copies makes up just 99 pieces in the whole world.

PRAVEX-BANK goes on demonstrating high growth rates of cards emission. So, as of 01.07.2007, number of cards made up 1 624 956. In comparison with the similar period of 2006 emission growth index increased 4 times.

One of the strong features of PRAVEX-BANK is the developed regional outlets network and also network of ATMs and POS-terminals which is constantly increased by the Bank. So, in 2007 PRAVEX-BANK ATMs network increased due to union of networks with Ukrgazbank and Ukrsotsbank and as a result acquiring network made up 2400 pieces. Soon network increase is planned on 300 ATMs more as a consequence of contract signing with NCR company for purchase of new ATMs consignment.

"Results of our work confirm recognition of PRAVEX-BANK as a reliable and stable financial institution which is vigorously developed and occupies leading position in Ukrainian banking market in the terms of high competitiveness.

By the end of 2007 the Bank plans to attract USD 150 mln. in foreign market from which in the beginning of Autumn Eurobonds issue will be performed for USD 100 mln. Concerning domestic market by the end of the year PRAVEX-BANK expects to attract UAH 200 mln. in the way of domestic loan bonds issue.

We also plan to increase turnovers on international money transfer systems on 30%. Total card emission will make up about 2 mln. numbers. As for outlets network, by the end of 2007 we plan to reach the index of 600", summarized Stepan Chernovetskyy, Chairman of the Supervisory Board of PRAVEX-BANK.