Oschadbank is the largest country’s universal bank!

13/ 03/ 2018

The Cabinet of Ministers of Ukraine has approved Oschadbank’s Development Strategy for YY2018-2022

As per the new Development Strategy approved by the Cabinet of Ministers of Ukraine on February 21, 2018, Oschadbank   will become  a universal bank with leadership positions  in servicing all customer groups with an optimized branch network, modern information technologies  as well as a  new operating model and effective risk management in 2022. This was discussed at the press conference with the participation of Oleksandr Danyliuk, Minister of Finance of Ukraine, Andriy Pyshnyy, Chairman of the Management Board of Oschadbank,   Sevki Acuner,   EBRD Director in Ukraine and Roman Hreba, Chairman of the Supervisory Board of Oschadbank, Deputy Minister of Education and Science of Ukraine. The Strategy envisages the completion of the state bank transformation   and the maintenance of leadership in the banking sector for the next 5 years. The document was supported by   Oschadbank’s  strategic partner – the European Bank for Reconstruction and Development.

Oschadbank’s   Development Strategy  is  an integral part of the overall development strategy for the    state banking sector. It involves reducing the share of state-owned banks through their partial or full privatization. This will increase the market competition, ensure financial stability and banking services availability. Corporate governance improvement by way of independent supervisory boards establishment  is being one of the important  changes.

Unlike other state-owned banks  only Oschadbank remains the largest universal bank that will be present in all customer segments.

  • Corporate business. Oschadbank will retain its leadership positions  in servicing   large business    having  the  significant expertise and established business relationships with large corporations. The Bank plans to hold a market share: in terms of loans – 18%, in terms of deposits – 11%.
  • MSMB. In servicing of  micro, small and medium-sized businesses  Oschadbank intends  to increase its market share by improving the service model. The market share  plan under the  loans to MSMB  for the year 2022 – 10%, under the  deposits and current accounts – 20%.
  • Retail business. For the last three years Oschadbank maintained its leadership in the retail  growth dynamics. In view of this, it is planned to triple the market share in the retail lending  to 13% by means of mortgages, car loans, credit cards and consumer loans. The Bank plans to maintain a market share of 19% in terms of attracting deposits and current accounts. Retail branch network modernization will remain  the Bank’s priority: opening of new ones and reducing the number of old inefficient branches. At the same time, Oschadbank will remain a pacemaker in  presence nationwide and will continue to support its clients where it is the only channel for financial services providing. Also, the Bank plans to continue development in the premium segment by expanding the list of services and locations to serve wealthy clients. Oschadbank’s  share    in the card business should increase from 6% to 17%. Considerable attention will be paid to the innovative technologies development in online banking.

Support functions centralization  and business processes improvement are being among the key components of the  strategy on  IT infrastructure  enhancement and information security  update. Persistent efforts will be  continued over the  non-performing loans. The Bank has made all necessary conclusions regarding the risk assessment that led to the inherited non-performing portfolio and has  already implemented them in the credit and risk policies. For the last three years Oschadbank has  learned not only to do business with the  NPL  but  has also became a real market benchmark in this regard, having  received in its favor the  court decisions for the amount  over 40 billion UAH.

The Development Strategy has been  broken down into step-by-step action plan with well-defined performance indicators. The final  outcome  of the strategy implementation  should  be Oschadbank’s value maximization   and its partial privatization with the participation of a reputable international investor.

«Oschadbank turns  a new page of its history. The first part of the strategic development plan, namely the modernization of the country’s largest and oldest bank has been successfully implemented. Leadership  strategy implementation is next in turn. We have been consistent in building of  the largest universal bank of the country. The new strategy confirms the success of  Oschadbank’s transformation since 2014 and identifies the clear further road signs.  The support of the chosen strategy by the Bank’s  shareholder – Government of Ukraine, and the EBRD – the strategic partner – is being an  evidence of their confidence in Bank’s professional new-look  team to realistically achieve  the ambitious development indicators fixed in the Strategy”, –  said Andriy Pyshnyy,  Chairman of the Management Board of Oschadbank.

«The Strategy for the State Banking Sector Development  approved  by the Government provides for Oschadbank’s privatization  with the participation of international financial institutions.   A year and a half ago a Memorandum on cooperation in operational and managerial processes improvement as well as  the  Bank’s value increase  was signed between the Ministry of Finance, the EBRD and Oschadbank. We should give notice that Oschadbank’s team is persistently working  on  this vision implementation. I am sure that further joint work of the EBRD, the Ministry of Finance and  Oschadbank  will create the basis for successful sale of the Bank and return of the state-funded money”, –  Oleksandr Danyliuk,  Minister of Finance of Ukraine stated  at a press conference.

«We have heard a clear statement of Oschadbank’s  development strategy   from its management. We are especially happy  that the Bank defines this as its goal for the future, as a contribution to the development of the Ukrainian economy. For today we can already see  some progress in  this direction. Particularly with regard to  small and medium-sized businesses support. The Strategy’s  specific  goals  fulfillment    finds itself critical to the prospects of the state banks in terms of  cooperation with international financial institutions. I am very glad that we are deepening the cooperation and approaching to the implementation of our Memorandum provisions, namely, partial participation in the capital of Oschadbank,”-  said   Sevki Acuner,   EBRD Director   in  Ukraine.

«Over the course of time since 2014 Oschadbank  has changed completely.  The savings bank has  turned into a modern innovation bank. This goes to prove  that Oschadbank’s   management  can set itself a task and can fulfill it. The members of the Supervisory Board congratulate the Bank’s new Development Strategy, including as it relates to new approach to corporate governance. All together we will able to achieve state-of-the-art results”, – commented  Roman Hreba, Chairman of the Supervisory Board of Oschadbank, Deputy Minister of Education and Science of Ukraine.

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