“Moody's positive outlook change on the Ukrainian banking system confirms that PrivatBank in on the right path”, says Petr Krumphanzl, Chairperson of the Management Board.
The international rating agency has raised its outlook for Ukraine's banking system to positive from stable, implying a positive performance for the country’s banking system for the next 12 to 18 months.
The agency’s views are aligned to those that underpin PrivatBank’s recently approved strategic plan. The plan sees an improvement of asset quality and profitability across the sector supported by a positive macroeconomic environment, translating into a positive credit environment for PrivatBank.
Moody’s recognises that now that most of the non-performing loans have been identified, provisioning charges should decline and loan growth will strengthen to a nominal 10% over the next two years. This confirms the positive steps that the Bank has taken to address the issue of non-performing loans and help consolidate the bank's strengths and its leading position in the market.
Since its rescue, PrivatBank has implemented many changes from an internal risk management perspective to align the bank’s operations to international best practices. PrivatBank expects to continue its positive performance and maintain its market lead in retail lending and deposits with UAH 45 bio and UAH 170 bio respectively.