July 18th 2017

Supervisory Board reported that McKinsey&Company Ukraine is chosen to develop the Strategy of PrivatBank

On Jul 18, 2017 the Supervisory Board of PrivatBank selected McKinsey&Company Ukraine as the winner on contest for the hiring of an internationally recognized firm that will be responsible for design of a strategy for PJSC CB “PrivatBank”.

In December 2016 the State represented by the Ministry of Finance of Ukraine to preserve the macroeconomic and financial sector stability has acquired ownership of 100% of the shares of PJSC CB "PrivatBank", the biggest bank in Ukraine, which was claimed insolvent by the NBU. This acquisition increased the State’s share in the banking sector up to approximately 55% (total assets) and created necessity to design a business restructuring plan (a market strategy) for PrivatBank by taking into consideration the other State owned banks in the market. The Government took this as an obligation under the Memorandum of Economic and Financial Policies, signed on March 2, 2017.

To design the aforementioned strategy, the Supervisory Board conducted an independent contest for selection of an internationally recognized firm that will perform such complicated tasks in the best manner. Based on the features of proposals, submitted by more than 10 leading international firms and other participants, the Supervisory Board selected McKinsey&Company Ukraine.

The objective of this assignment is to design a market strategy to optimize PrivatBank operations while ensuring the best interest of its shareholder and financial stability and to perform a diagnostic of the Bank and assess its ability to rebuild a strong, sustainable business model, and to generate strategic options for its further evolution. To design the above mentioned strategy the banking sector landscape and perspective should be analyzed, assessed and special attention should be paid to the other State owned banks (e.g. Oshadbank, Ukreximbamk and Ukrgasbank) besides PrivatBank.

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