The project on creation of seven macro-regional centers based on 27 branches is being implemented in Ukrsotsbank

The project on creation of seven macro-regional centers based on 27 branches is being implemented in Ukrsotsbank. According to the decision taken by the leadership of the bank there will be created 7 macro-affiliates on the basis of 27 branches (24 regional branches, Crimean Republican Branch, as well as branches in the cities of Kyiv and Sevastopol):

• Kyiv macro-branch (was the pilot project, which is already created and is working)  by means of merger of  Kyiv city, Kyiv oblast, Zhytomyr, Cherkasy and Chernihiv oblast affiliates,
• Donetsk macro-branch of East macro-region by means of merger of Donetsk, Zaporizhzhya and Luhansk regional affiliates,
• Kharkiv macro-branch of North-East macro-region by means of merger of Kharkiv, Dnipropetrovsk, Poltava and Sumy regional affiliates,
• Khmelnytsky macro-branch of Central macro-region by means of merger of Khmelnytsky, Vinnytsia, Ternopil and Chernivtsi regional affiliates,
• Lviv macro-branch of West macro-region by means of merger of Lviv, Volyn, Zakarpattiya, Ivano-Frankivsk and Rivne regional affiliates,
• Odesa macro-branch of South macro-region by means of merger of Odesa, Kirovohrad, Mykolaiv, Odesa and Kherson regional affiliates,
• Crimea macro-branch of Crimean macro-region by means of merger of Crimea republican affiliate and Sevastopol affiliate.

Chairman of the Board of Ukrsotsbank Borys Tymonkin said that the reorganization processes were launched last year before the financial turmoil, considering the advantages of synergies as a result of back-office centralization. «If a year ago it was the additional factor of net profit increase now the macro-region creation is the issue of reinforcement of bank stability, its survival in unfavorable market environment. The synergy effect, achieved by transformation is the course to essential expenditures cut as the bank has to stay in profitability zone. The back-office (HR, logistics, accounting etc) functions centralization is the way of all the global system banks in the world»,said Chairman of the Board.

According to First Deputy Chairman of the Board, Gianni F. Papa, the transformations which take place in Ukrsotsbank are based on the best practices of the banks of UniCredit Group and have been successfully implemented in different European countries. 

«Maximum centralization of back office and support functions on the macro-regional level will significantly simplify the structure of many bank processes and concentrate the network directly on business and front office. As a result, we automatically will get a synergy that will reduce our costs — said Gianni F. Papa, — We understand that this year due to financial crisis we will not have too much business and we will be able to concentrate more on the transformation and when after the crisis the market will return to normal operation, the bank due to the improvement of regional network will become even more powerful, competitive and efficient».

The creation of macro-regions will help Ukrsotsbank to meet the challenges of financial turmoil which has an effect both on Ukraine and the entire world.

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.

As of October 1, 2008:

• total credit portfolio — UAH 32.584 billion,
• net assets - UAH 38.753 bln.,
• funds of legal entities deposited on thrift and current accounts - UAH 7.633 bln.
• funds of individuals  deposited on thrift and current accounts  - UAH 7.681 bln.
• the Bank capital — UAH 3.699 billion
• the Bank net profit – UAH 502 million.

On 23rd of January 2008, UniCredit Group finalized the acquisition of 94,2% total shareholders capital of Ukrsotsbank from the group of investors that were represented by international consulting company EastOne (shareholders’ saler) through Bank Austria Creditanstalt AG (BA-CA), which is responsible for commercial banking activity in CEE.