Ukreximbank

According to preliminary data released by the NBU, state-owned Ukreximbank booked net profit of UAH 1.0bn ($42m) in 4Q22 following a UAH 5.4bn ($168m) net loss in 3Q22, recording a net loss of UAH 6.9bn ($213m) for the full year. Total assets (UAH terms) increased by 10% q-o-q (+23% y-o-y), with net loans +0.4% q-o-q (+20% y-o-y). Customer deposits rose by 14% q-o-q in UAH terms (+44% y-o-y). NIM, based on net interest-bearing assets and in UAH terms, inched up by 0.4pp q-o-q to 2.0% (2.7% in 2022, -0.6pp y-o-y). Annualized cost of risk was positive at 1.8% due to a release of provisions in 4Q22, vs. 28% in 3Q22 (14% in 2022, +12pp y-o-y). The total capital adequacy ratio stood at 7.7%, down 3.8pp q-o-q and 10.5pp YTD.

Moody's Investors Service downgraded Ukreximbank’s Baseline Credit Assessment (BCA) and Adjusted BCA by one notch, to ca from caa3. Also Moody's affirmed the bank's long-term deposit rating of Caa3, senior unsecured debt rating of Caa3, and subordinated debt rating of Ca. The outlook on the long-term deposit and senior unsecured debt ratings remained negative.