Public Joint Stock Company “State Savings Bank of Ukraine” (Oschadbank) published its IFRS Consolidated Financial Statements for the year ended 31 December 2012 audited by Deloitte & Touche.

During the financial year 2012 Oschadbank demonstrated another year of steady growth and achieved considerable results despite the general economic environment. 
Net interest income before provisions rose by 15.0% and reached UAH 5.3 bn as of the year end 2012, bringing net interest margin to 6.44% (6.77% in 2011). Net non-interest income, mainly driven by proceeds from payment cards, off-balance, settlement and cash operations, was also up by 4.2%, totalling UAH 1.3bn. 
Operating expenses in 2012 increased by 23.1% to UAH 3.2 bn reflecting inter alia Bank’s business expansion, continued IT and technology development and also driven by staff and administrative costs. This resulted in the cost-to-income ratio of 48% (44% in 2011). 
A reported net profit for 2012 reached UAH 662.7 mln vs. UAH 1.1 bn for the previous year, as a result of growth in provisioning charge, demonstrating Oschadbank’s adherence to its conservative provisioning policy. Return on average assets (ROAA) reached 0.84%, compared to 1.66% in 2011. 
On the balance sheet side, Oschadbank’s assets grew by 13.0% to UAH 83.4 bn, extending its market share and holding the third place by assets in the sector. 
Having added 4.3%, gross loan book totalled UAH 61.3 bn as at year end 2012, mainly driven by increased exposure to private corporate customers. The Bank’s exposure to Naftogaz equalled to 33.1% of the bank’s gross loan book, down from 34.5% in 2011, 51.0% in 2010 and 58.1% in 2009. Transactions with related parties (entities with state-owned share more than 20%) slipped down to 42% of the assets vs. 46% a year before. 
NPLs stood almost flat (7.3% at YE2012 vs. 7.1% at YE2011) and were covered by loan loss provisions for a high 224%. LLPs were up by 19.4% and equalled UAH 10 bn or 16.3% of total loans in 2012 vs. 14.2% in 2011. NPLs level and their coverage ratio by provisions remain one of the best in the banking system. 
Customer accounts grew by 19.3% during 2012 outperforming the market and amounting to UAH 38.9 bn. Retail accounts rose by 17.3% to UAH 29.6 bn, while corporate accounts were up by 26.2% and reached UAH 9.2 bn. Gross loans-to-deposits ratio adjusted for the NBU refinancing amounted to 121 % as at year end 2012 (vs. 138% as at year end 2011). 
Total equity increased in 2012 by 2.4% to UAH 17.8 bn for the account of retained earnings. Capitalization remains strong with capital adequacy ratio of 28.2% and Tier 1 ratio of 25.1% (30.3% and 26.7% as at year end 2011, respectively). Additionally, according to the State Budget Law for 2013, a new capital injection is planned in 2013 in the amount of UAH 1.4 bn.