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) reported 3Q19 IFRS results, including financials for its Ukrainian unit Raiffeisen Bank Aval (BAVL). Aval booked 3Q19 net profit of EUR 44m ($49m), -3.5% q-o-q, bringing 9M19 net profit to EUR 126m ($142m), -2.5% y-o-y. NIM stood at 10.81%, -0.44pp q-o-q (11.0% in 9M19, -0.5pp y-o-y). Cost/Income came in at 44.1%, -1.2pp q-o-q (45.1% in 9M19, +4.8pp y-o-y). The provisioning ratio was reported at 1.1% vs. pos. 1.4% in 2Q19 (pos. 0.1% in 9M19 vs. pos. 2.1% in 9M18). NPLs shrank to 6.4%, -0.2pp q-o-q and -4.9pp y-o-y, with the coverage ratio at 66.2%, +0.4pp q-o-q and -7.4pp y-o-y. Loans to customers (in EUR terms) increased by 7.3% q-o-q and 18.6% y-o-y, with total assets +13.5% q-o-q and +32.0% y-o-y. Customer deposits grew by +16.6% q-o-q and +39.9% y-o-y.
Raiffeisen Bank Aval reported 3Q19 net profit of UAH 1.1bn ($42m), -14% q-o-q, bringing 9M19 net income to UAH 3.5bn ($139m), -14% y-o-y. Assets were flat q-o-q (+7% y-o-y), with net loans -4% q-o-q and -3% y-o-y, while customer deposits increased by 3% q-o-q and 12% y-o-y. NIM (based on net interest-bearing assets) stood at 9.4% in 3Q19, -1.1pp q-o-q (10.6% in 9M19, -0.4pp y-o-y). Cost/Income totaled 44.6% in 3Q19, +1.3pp q-o-q (44.9% in 9M19, +4.9pp y-o-y). Cost of risk (CR; annualized) reached 0.9% in 3Q19 after the bank released provisions in 2Q19 (positive CR at 1.3%), bringing 9M19 CR to +0.1% vs. +1.6% in 9M18. NPLs (classified as Stage 3 and Purchased/Originated Credit Impaired) were reported at 9.5%, +0.2pp q-o-q and -1.6p YTD. Total capital adequacy ratio (NBU) stood at 17.9%, +2.8pp q-o-q and +0.8pp y-o-y.