Oschadbank demonstrated profitability and improved operating results in 2021
In 2021, Oschadbank demonstrated a significant improvement in operating results, stable profitable operations and business growth*. Thus, Oschadbank's operating profit for 2021 is UAH 5.6 bn, which is several times higher than the result of the previous year. Taking into account the negative trading result of UAH 4.4 bn caused by the strengthening of hryvnia and the corresponding indexation of securities in the Oschad portfolio, the net profit is UAH 1.1 bn, which is significantly higher than planned.
The bank generated net interest income of UAH 13.4 bn, which is 1.7 times (UAH 5.4 bn) higher than in 2020.
Net fee and commission income is UAH 6.2 bn. Compared to 2020, this indicator increased by UAH 1.2 bn, or 24.9%.
The bank has made significant progress in managing its non-performing portfolio in 2021. During 2021, this indicator calculated using the NBU methodology decreased by UAH 18.3 bn (to 33%). Such a result has been achieved thanks to the use of the widest toolkit for distressed debt management.
"Although Oschadbank's strategy for 2021-2024 was approved by the Cabinet of Ministers of Ukraine only in October, we have actually been working on its implementation throughout the year. We are satisfied with our achievements, first of all, as far as the operational results are concerned; the business plan in its key indicators was exceeded by the bank. This year, we will continue to work on increasing efficiency through cost optimisation, revision of processes and further digitalisation in order to improve the investment attractiveness of our bank," said Sergii Naumov, CEO of Oschadbank.
Oschadbank continues to be a leader in the banking system in terms of customer loan portfolio and funds raised from legal entities and individuals. The net loan portfolio as compared with the beginning of the year increased by UAH 11.5 bn or 18.2%, and amounts to UAH 74.8 bn.
The growth rate of the retail business resource base was higher than the average in the banking system. Oschadbank's retail loan portfolio increased by UAH 4.7 bn to UAH 13.6 bn. The main drivers of portfolio growth were car loans, payment card loans, mortgage loans and cash loans. In total, in 2021 individuals placed about UAH 122 bn on Oschadbank's accounts. Of this amount, more than UAH 68 bn are term deposits. This indicates a constant trust of depositors. At the same time, the share of deposits opened through the Internet and Oschad 24/7 mobile application increased up to 37%.
Oschadbank actively supports micro, small and medium businesses in Ukraine. During 2021, Oschad achieved significant growth in the MSME loan portfolio. The growth is more than UAH 3.6 bn. Last year, the bank financed over 4.5 th. business customers. The total amount of new loan agreements signed is UAH 7.3 bn, UAH 3.6 bn of which were directed to financial support of agricultural enterprises. Dynamic loan portfolio growth (better than competitor banks) was demonstrated by all segments: micro, small and medium business. At that, in partnership aspect, the growth more than doubled: in the portfolio from UAH 0.6 bn to UAH 1.3 bn, in number of loan transactions: from 425 to 917.
The corporate loan portfolio (excluding non-performing loans) increased by UAH 4.2 bn in 2021, to UAH 42 bn by the end of the year. During 2021, Oschadbank entered into loan agreements for new projects worth over UAH 11.5 bn. Among them are private companies operating in various sectors of the economy and municipalities.
Oschadbank implemented about 10 digital projects in 2021. A key one was the launch of the new Mobile Oschad application. The number of mobile/web banking customers grew by 840,000 over the year to 5.9 m users. Others include the launch of the new website, identification and verification via Diya at Oschad branches, launch of the eSupport digital card, introduction of the Sofia voice assistant in the Contact Centre, possibility to pay with the Mi Smart Band 6 NFC fitness bracelet and the Swatch Pay watch.
Oschadbank paid the largest dividend amount in its history to the state budget in 2021: UAH 833 m.
(*- provisional figures provided, which may be updated after annual adjustments and external audit)