Oschadbank is the largest country’s universal bank!
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.
