Raiffeisen Bank Aval, controlled by Raiffeisen Bank International since 2005, is the 5th largest bank in Ukraine, accounting for 5% of total domestic banking assets. The EBRD acquired a 30% stake in Aval in 2015.
Raiffeisen Bank International (RBI), as part of its released 1Q20 IFRS statements, reported results for its Ukrainian unit Raiffeisen Bank Aval (BAVL). Aval booked 1Q20 net profit of EUR 38m ($41m), down 25% q-o-q and a marginal -0.3% y-o-y, NIM of 9.7%, down 0.6pp q-o-q and 1.3pp y-o-y, a Cost/Income ratio of 46.3%, down 1.1pp q-o-q and virtually flat y-o-y, and a positive provisioning ratio of 0.6% (meaning a release of provisions) vs. -2.0% in 4Q19 and -0.1% in 1Q19. NPLs more than halved to 4.2% (-4.4pp y-o-y), with coverage at 61.5%, down 2.4pp q-o-q and 8.2pp y-o-y. Loans to customers decreased by 14% q-o-q but were up 4.3% y-o-y, with total assets down 1.9% q-o-q and up 32% y-o-y. Customer deposits dipped by 3.5% q-o-q but remained 36% higher y-o-y.
Raiffeisen Bank Aval published its 1Q20 results (IFRS separate; unaudited), reporting net profit of UAH 1.0bn ($41m), -4% y-o-y. Total assets (in UAH terms) increased by 33% y-o-y, with net loans +5% y-o-y. Customer deposits (in UAH terms) were up 34% y-o-y. NIM (based on net interest-bearing assets and in UAH terms) was reported at 9.4% in 1Q20, -1.0pp y-o-y. Cost/Income stood at 48% in 1Q20, +1pp y-o-y. Cost of risk (annualized) totaled 0.6%, +0.6pp y-o-y. Impaired loans (defined as Stage-3 loans under IFRS 9) stood at 7.8% of total loans at end-1Q20, -3.5pp y-o-y, with LLR coverage of 67%, -9pp y-o-y. Total capital adequacy (NBU) came in at 20.7%, +3.1pp y-o-y.