Ukrsotsbank mortgage market share amounted to 15.39%, as of the first half of the year.

Ukrsotsbank mortgage market share amounted to 15.39% as of the first half of the year. According to the UNMA data, Ukrsotsbank managed to rise from the third to the second place in the mortgage rating of Ukrainian banks due to such result in the second quarter of 2007.

“The structure of our loan portfolio is close to the European one: mortgage makes the biggest share of the portfolio — about 70%. These are loans for the purchase of housing in the primary and secondary markets and loans for other purposes on security of apartments, for repairs, for instance”, Ukrsotsbank Chairman of Borys Tymonkin says.

He said that the mortgage market in Ukraine has good prospects of dynamic growth. “If you analyze the Ukrainian National Mortgage Association data, then following the last year results there is 60 USD of mortgages for one resident of Ukraine. At the same time the share of the so-called grey GDP in our country is much higher than the European one. For example, Ukraine is richer than Romania, where the official GDP higher than ours. In my opinion, this shows that the volume of mortgages will grow rapidly,” explained its position Ukrsotsbank Head.

Note.

JSCB “Ukrsotsbank” was established in September 1990. At present, it is among the largest banks in Ukraine. The branch network of the Bank comprises 490 offices – 463 off-balance offices and 27 regional branches. The number of employees exceeds 10 000.

Financial summary, as of September 1, 2007:

• Net assets - UAH 26.517 billion
• Loan portfolio - UAH 20.260 billion
• Funds of legal entities deposited in the Bank’s thrift and current accounts - UAH 7.021 billion
• Funds of individuals deposited in the Bank’s thrift and current accounts - UAH 6.344 billion
• Capital – UAH 2.840 billion
• Net profit – UAH 263 million

In January-August, 2007 Ukrsotsbank share on the net assets market grew by 0.4 percentage points to 5.6%, which corresponds to the fourth position in the TOP-10 rating of Ukrainian banks (the sixth position as of January 1, 2007). The Bank is active in granting loans both legal entities and individuals. The Bank’s share on the legal entities crediting market increased from 3.4% (as of January 1, 2007) to 4.1% as of September 1, 2007, (4% as of August 1, 2007). The Bank share on legal entities market made 6.8% (6.5% as of August 1, 2007), corresponding to the second place among Ukrainian banks, individuals — 4.7% (fifth position in the Ukrainian banks rating). In January-August the Bank’s presence on the individual crediting market increased up to 9.2%, which corresponds to the fourth position in the rating (8.9% as of January 1, 2007).

In H1 2007 the Bank’s net profit made UAH 160 million, by the end of 2007 the Bank expects to earn UAH 350—400 million of net profit.

Ukrsotsbank finished the year of 2006 with UAH 287 million of net profit, having increased this index 2.45 times more if compared to 2005.

As was announced with reference to UniCredit Group (Italy), Bank Austria Creditanstalt AG (BA-CA) that inside UniCredit Group is responsible for the commercial bank activity in the Central and Eastern Europe inked the agreement on acquisition of some 95% of Ukrsotsbank’s stock. The deal will have been expectedly finalized in Q4 2007 after receiving permissions from the corresponding regulatory bodies of Italy, Austria and Ukraine (Bank of Italy, Austrian Markets Authority, the National Bank of Ukraine and the Anti—monopoly Committee of Ukraine).