Acting Minister of Finance Oksana Markarova has signed an order approving the Development Strategy of JSC CB "PrivatBank", earlier endorsed by the financial institution’s independent Supervisory Board.
The document envisages, in particular, the introduction of an effective risk management system, solving the problem of non-performing loans, as well as a number of organizational and corporate governance changes aimed at improving efficiency and reducing costs.
"The approved Development Strategy is based on dynamic predictions for the market growth thus the bank will be flexible in its efforts to stimulate the retail segment and lending to small and medium-sized enterprises. Moderate presence in the corporate segment will enable the bank to achieve optimal balance between financial attractiveness and risk", commented the Chairman of PrivatBank Supervisory Board Engin Akcakoca.
According to the key metrics set out in the document, in 2022 PrivatBank plans to receive UAH 8.4 bln net profit and will be ready for the exit of the state from control stock. Total shareholder return during the period from 2018-2022 will amount to UAH 81 bln, not including the funds PrivatBank is determined to recover through the courts.
"We believe that the practical implementation of the strategy will help consolidate the bank's strengths and positions on the market, while providing an acceptable level of profitability on a par with the best players. The independent Supervisory Board of the Bank will guarantee the implementation of the approved development strategy," noted acting Minister of Finance Oksana Markarova.