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PrivatBank2016
Ukrainian bankingsector overview
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Banking system overview
As on January 01, 2016
117 banks in Ukraine
of which 40 banks with foreign capital
63 banks were declared insolvent
On Feb 16, 2016 the NBU identified PrivatBank as a Systemically Important Bank(only 3 banks were classified as systemically important. The other two are stateowned banks Oschadbank and Ukreximbank).http://www.bank.gov.ua/control/en/publish/article?art_id=27769824&cat_id=76291
Consolidation of the Ukrainian banking system during 2014-2015
Source: NBU data
Ukraine: macroeconomic indicators
Source: State Statistics Committee of Ukraine, the NBU – Inflation report, Jan 2016, http://bank.gov.ua/doccatalog/document?id=27033424
GDP amount in UAH mln.(at prices of the previous
year)*
GDP amount in USD mln.equivalent (at prices of
the previous year)
Relevant official USD/UAHexchange rate (NBU) as of
the YE
2013 1 404 293 175 756 7,99
2014 1 369 190 86 822 15,77
2015 1 430 290 59 595 24,00
GDP declined by 10.5%The national currency devalued by more than 3 times (within 2 years)Inflation level reached 43.3%Growth of utility tariffs: gas by 3-7 times; heating, electricity and water supply by 70%Minimum salary grew by 13% for two years:
from UAH 1 218 (USD152*) as of 01.01.2014to UAH 1 378 (USD 57*) as of 01.01.2016
2015 vs 2014
*Note: USD equivalent is calculated based on the official NBU exchange rate as of the relevant date
YE 2015 export of the goods from Ukraine declined by 29,3% (compared to 2014), import intoUkraine - by 31,1%.
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*Source: State Statistics Committee of Ukraine, http://www.ukrstat.gov.ua/
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Market liquidity1. Deposits of households (other than private entrepreneurs) in national currency grew by UAH 5.3 bln. (+2.8%)2. Deposits of corporates in national currency grew by UAH 2 bln. (+1.0 %);3. Total balance of the refinancing loans provided by the NBU to the banking system decreased by UAH 3.1 bln. (by
UAH 20.95 bln. from the year beginning);4. Balances on bank correspondent accounts grew by UAH 8.2 bln. (by UAH 17.5 bln. from the year beginning);
including NBU certificates of deposit total banking system liquidity is UAH 94.8 bln.5. Balance on the Single Treasury Account in UAH reached UAH 18 bln.;
Cost of funds decreasing:1. On the 24th of July the NBU lowered refinancing rate to 16.5% (by 1.5 p.p.);2. Weighted average interest rate offered on deposits of households in national currency dropped from 16.5% to
16.2% (compared to 16.7% in December 2015).3. Weighted average interest rate offered on deposits of households in foreign currency dropped from 6.5% in
December 2016 to 5.8% in May 2016 and 5.4% in June;4. Weighted average interest rate payable under bank-to-bank loans in national currency lowered from 19.5% to
17.4%;5. Inflation rate dynamics in June shows trend for continuing low inflation pace.
FX market – positive mood:1. USD/UAH exchange rate in June strengthened by 31 kopecks (+1.2%);2. Foreign currency reserves grew as at the current USD/UAH exchange rate. Even before receipt of the IMF loan
tranche. Ukraine is nearing the second review of the IMF programme after which the NBU expects to moreincrease the FX reserves;
3. Deposits of corporates in foreign currency (in USD equivalent) grew by USD 256 mln. (+5.2 %);4. In June Ukrainians sold foreign currency to the banks by $379 more than purchased;5. At the FX market volume of foreign currency proceeds sold by exporters has continued to exceed payments under
import contracts – by $27 daily at the average.
The NBU stresses on positive trends in the banking system of Ukraine in June 2016
15 positive facts about situation on the Ukrainian bankingsystem
Source: according to the Deputy Head of the NBU Mr. V. Rashkovan
Top-10 Ukrainian banks:Main financial figures as of 01.01.2016
Top 10 banks generate 71% assets of the total Ukrainian banking system
01.01.2016 AssetsUAH thous.
Share capital,UAH thous.
Profit/lossUAH thous.
Equity capitalUAH thous.
PrivatBank 264 886 279 21 256 469 216 121 27 487 223
Oschadbank 159 389 351 29 901 320 -12 273 078 7 340 404
Ukreximbank 141 285 440 21 689 042 -14 132 383 -3 127 086
Ukrsotsbank 54 219 161 7 866 183 -3 224 844 13 736 890
Sberbank of Russia 51 806 564 8 172 461 -6 328 545 2 267 702
Raiffeisenbank Aval 51 239 349 3 002 775 -1 439 155 6 268 073
Ukrsibbank 43 418 209 1 774 333 22 708 1 803 127
Alfa-Bank 42 363 131 4 639 121 -2 657 691 2 623 703
Prominvestbank 41 652 330 19 010 944 -20 272 049 -12 269 344
Ukrgasbank 41 555 340 13 837 000 259 672 4 292 646
Total banking system 1 252 570 443 212 921 315 -77 935 179 94 913 860
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Source: NBU (bank.gov.ua) as of 01.01.2016http://bank.gov.ua/control/uk/publish/category?cat_id=64097
Top-10 Ukrainian banks:Main financial figures as of 01.04.2016
Top 10 banks generate 72% assets of the total Ukrainian banking system
01.04.2016 AssetsUAH thous.
Share capital,UAH thous.
Profit/lossUAH thous.
Equity capitalUAH thous.
PrivatBank 276 550 570 21 256 469 211 438 27 863 904
Oschadbank 180 982 128 29 901 320 112 032 13 303 196
Ukreximbank 157 250 775 21 689 042 -1 357 335 4 641 385
Sberbank of Russia 56 372 559 8 172 461 53 108 2 319 847
Raiffeisenbank Aval 52 582 952 6 154 516 683 099 6 950 855
Ukrsotsbank 52 040 839 7 866 183 96 787 13 833 671
Ukrgasbank 48 903 479 13 837 000 28 925 4 296 545
Ukrsibbank 40 876 927 1 774 333 -910 754 4 187 301
FUIB 39 392 960 3 294 492 -265 382 3 403 979
Alfa-Bank 39 304 199 7 400 620 -536 849 2 088 292
Total banking system 1 319 493 375 221 697 240 -7 739 910 136 068 280
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Source: NBU (bank.gov.ua) as of 01.04.2016http://bank.gov.ua/control/uk/publish/category?cat_id=64097
PrivatBank is a leaderin the Ukrainianbanking market
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PrivatBank in Top-1000 ranking
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Source: The Banker, Top-1000 World Banks, July 2016
In 2016 in the annual rankingof the largest world banks“Top-1000 World Banks”by The Banker magazine,the only bank from Ukraineto appear in the rating wasPrivatBank.
RegionalRank
WorldRank Bank Name Country Tier 1 Capital
($m)1 51 Sberbank Russia 30,5532 76 VTB Bank Russia 18,0543 179 Gazprombank Russia 6,7784 190 PKO Bank Polski Poland 6,3105 241 Alfa Bank Russia 4,2196 305 OTP Bank Hungary 3,107
7 321 Otkritie FinancialCorporation Bank Russia 2,908
8 342 Rosselkhozbank Russia 2,656
9 369 Bank GospodarstwaKrajowego Poland 2,354
10 545 Belarusbank Belarus 1,42511 553 Banca Transilvania Romania 1,400
12 554 Nova Ljubljanska Banka(NLB) Slovenia 1,395
13 575 Getin Noble Bank Poland 1,29614 588 Credit Bank of Moscow Russia 1,24915 589 Promsvyazbank Russia 1,24316 627 PrivatBank Ukraine 1,11317 782 Alior Bank Poland 76318 787 Belagroprombank Belarus 75719 815 Bank Saint Petersburg Russia 70520 846 B&N Bank Russia 63321 855 Nova KBM Slovenia 61922 885 Bank Rossiya Russia 57323 889 Postova Banka Slovakia 56324 926 First Investment Bank Bulgaria 50525 940 Abanka Slovenia 491
TOP 25 : CENTRAL AND EASTERN EUROPE
PrivatBank – the main settlement bank of the country
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2 170 7 257 12 548 128 129 5.1 mln 29 mln
Branches ATMs Self-servicingterminals
POS-terminals(acquiring) Privat24 users Plastic cards
• 51% market share in plastic cards2
• 64% market share in settlements of individuals (by users) 3
• 54% market share in deposits from individuals (by deposit accounts)3
• 52% market share in term deposits from individuals (by portfolio size)2
Source: PrivatBank data as on 01.06.2016 Notes: 1ukrstat.gov.ua; 2 NBU (bank.gov.ua); 3 Gfk Ukraine
As on 01.04.20161
The population of the country was 42.7 mln
As on 01.04.2016
Source: GfK Ukraine, 1Q2016
Note:* % of all respondents** % of all users of the service/product
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Alfa Bank
RZB Aval
Oschadbank
Oschadbank
Oschadbank
Oschadbank
PrivatBank provides services to 48.6% of the Ukrainians,who use banking services
Competitive position in the retail market (Ukraine)
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SME
Raise financingfrom citizens fordevelopment oftheir business
Citizens ofUkraine
Invest funds directlyto Ukrainian
business
PrivatBank
Platform withapplications forfinancing up to
UAH 300 thous.
Service of national Lending to Ukrainian Business - kub.pb.ua
PrivatBank extends loans to Ukrainian business
Creation of new working places – nearly 1 mln
RZB Aval
RZB Aval
Oschadbank
RZB Aval
RZB Aval
RZB Aval
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PrivatBank provides services to 56.1% corporatesin Ukraine
Competitive position in the corporate market (Ukraine)
Source: GfK Ukraine, 1Q2016
Note:* % of all respondents** % of all users of the service/product
PrivatBank financialoverview
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PrivatBank shows sound performance as of the YE2015
Source: financial statements of the Bank 2015 vs 2014
Main figures
- Net profit UAH 275 mln. (2014: UAH 247 mln.)
- CAR (Basel) 14.9% (2014: 13.7%)
- Capital adequacy ratio ( 2) 11.0% (2014: 11.0%)
- NPL (90+ arrears) 12.2% (2014: 5.6%)
PrivatBank demonstrates a very stable and soundperformance based on results as of the year end 2015
"With the current situation in Ukraine, these results show indications of a resilient business model,”said Dr. Alexander Mirtchev, an international economist and CEO of the Krull Corp, a Washington, DCbased macroeconomic consultancy. "At this stage , it is important for businesses to demonstratetransparency while coupling their initiatives with positive results.”(Source: http://finance.yahoo.com/news/analysts-privatbanks-increased-profits-show-184938641.html)
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PrivatBank liquidity position
Source: IFRS financial statements as of 31.12.2015
Main liquidity ratios PrivatBank ratioas of 31.12.2015
Minimum required limitestablished by the NBU
Instant liquidity ratio (N4) 57% 20%
Current liquidity ratio (N5) 60% 40%
Short-term liquidity ratio (N6) 97% 60%
PrivatBank maintains sufficient liquidity andseeks to maintain a stable funding base
Financial summary (IFRS)
17Source: PrivatBank audited consolidated IFRS financial results
Balance sheet(UAHm)
2012 2013 2014 20152015 to 2014
change (%)
Total assets 166,237 197,570 229,036 274,934 20.0
Loans and advances to customers 119,417 139,663 161,830 195,339 20.7Customer accounts 124,574 150,888 152,053 191,910 26.2Total equity 21,405 22,824 25,733 29,045 12.9
Income statement, (UAHm) 2012 2013 2014 20152015 to 2014
change (%)
Net interest income 8,938 8,715 7,258 1,966 -72.9Net F&C income 3,274 3,671 3,558 5,626 58.1PBT 1,532 1,491 149 472 216.8Net income 1,439 1,307 247 275 11.3
Key ratios (%) 2012 2013 2014 2015 2015
Loans/deposits 96 93 106 102
Tier 1 ratio 13.8 13.5 11.6 11.0
CAR 15.0 15.6 13.7 14.9
Net Interest Margin 6.8 5.4 3.6 0.8
Cost/Income 48.9 60.5 54.2 71.9
NPL 6.1 5.8 5.6 12.2
Cost of risk 4.2 2.6 2.7 3.0
Coverage ratio 231.9 225.1 210.2 104.9
RoAE 7.1 5.9 1.0 1.0
RoAA 0.9 0.7 0.1 0.1
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Rating agencies about PrivatBank
“We assess the bank's business position as adequate,reflecting its dominant commercial banking franchise inUkraine and our expectation that it will prove more resilientto the current economic and political crisis in Ukraine than itsdomestic peers. In our view, PrivatBank remains one ofthe strongest banks in Ukraine and has a viablebusiness model, even under current difficult operatingconditions.”
Source: S&P report dated 07.12.2015 .
Sound asset quality and conservativeprovisioning policy
3,39%4,75%
10,93%6,75%
4,29% 6,12% 5,82%5,65%
12,24%
1,45% 1,50% 6,11% 3,44% 1,53% 4,41% 4,72% 2,70%7,99%
6,41%11,75%
25,42%20,66%
15,07% 13,14% 9,82%
20,51%31,83%
0%
10%
20%
30%
40%
2007 2008 2009 2010 2011 2012 2013 2014 2015
(%)
NPL,% (arrears 90+), total portfolio NPL,% (arrears 90+), corporates NPL,% (arrears 90+), individuals
Source: audited consolidated IFRS financial results
NPL curves, PrivatBank Group, consolidated IFRS,% of total portfolio (overdue 90+)
2,8 8,1 11,4 12,5 16,0 19,8 21,3 21,8 28,845,9
76,2 78,0102,2
123,4139,2
161,0183,6
224,1
6,1%
10,7%14,7%
12,2%12,9% 14,2% 13,3%
11,9%12,8%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
2007 2008 2009 2010 2011 2012 2013 2014 2015
(UA
H b
ln)
Provisions for loan impairment as of the end of period Total loans and advances to customers (before impairment)
Provisions to total customer loans (gross)
Provisioning level
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Low NPL level - reasons1. Composition of the loan book:
85% - corporate loans15% - retail portfolio
2. PrivatBank’s loan portfolio is overcollaterised
3. The bank uses a very effective type of collateral – Corporate Rights pledge.
4. PrivatBank’s collection/foreclosure experienced specialists are the bestin the industry in the Ukraine.
5. PrivatBank thanks to its dominant market positions in the Ukraine hasthe largest database of borrowers.
6. The best IT system in banking system, which allows to maintain hugenumber of small transactions.
Combination of abovementioned factors lead to the better quality of thebank’s loan book in comparison with other banks.
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PrivatBank credit portfolio – over-collateralised assets
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*According to IFRS financial statements (PwC) as of 31.12.2015 (Note 10, p.37)
In millions of Ukrainian hryvnias
Over-collateralised assets Under-collateralised assets
Carrying value of theassets
Expected cash flowsfrom collateral
realisation
Carrying value of theassets
Expected cash flowsfrom collateral
realisation
Loans and advances to customers 153,912 198,270 22,820 15,702
Source: audited consolidated IFRS financial statements as of 31.12.2015 (PwC)
As of 31.12.2015
• The total carrying amount of the NBU refinancing loan tranches was UAH27,079 million• Assets pledged under the NBU refinancing loans amounts to UAH 95,612 mln• 8.7 million shares of the Bank or 11.46% of the share capital are pledged as collateral
for loans from the National Bank of Ukraine
PrivatBank over-collateralised assets
The NBU loan is over-collateralised as well
2 2394 335 3 880
8 287
4 773
8 1769 627
18 531
34 509
5,2
6,45,8
9,2
4,4
6,86,9
11,5
17,7
0
4
8
12
16
20
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
2007 2008 2009 2010 2011 2012 2013 2014 2015
(%)
(UAH
mln
.)
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Related party loans / Total loans
Related party transactions
Notes:1 less impairment provisions2 considering UAH7.7 bln. FX translation gains less losses
Related party transactions(IFRS) 1
Source: audited consolidated IFRS financial results
2
Rating agencies about quality of PrivatBank loanportfolio
“The bank's reported non-performing loans (NPLs, loans more than 90 daysoverdue) at 8% of gross loans, remained significantly below sector averagelevels at end-1H15.”*
“We consider the bank's risk position to be adequate, reflecting our view ofthe bank's more conservative risk appetite, more advanced risk-managementframework, greater franchise diversification, and better loss experience thanUkrainian peers'. As a result, we expect the bank's asset quality will remainamong the best in the Ukrainian banking system. PrivatBank's nonperformingloans (NPLs; loans over 90 days overdue, according to International FinancialReporting Standards) were stable at about 8.0% as of Oct. 1, 2015--the samelevel as a year ago. This is significantly below the reported NPLs for theUkrainian banking system of 20% on the same date.”**
Source: *Fitch report dd 03.12.2015 ., **S&P report dd 07.12.2015 .
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Source: audited consolidated IFRS financial resultsNotes:
CAGR—Compound Annual Growth Rate—average annual growth, compound percent
Net profit after tax Net interest income/net interest margin
Net commission income Cost—income ratio
(UA
Hm
)
(UAH
m)
(UA
Hm
)
CAGR = 32.2%
CAGR = 12.2%
%
%
Net interest margin
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The focus is on generation of the commission income
Focus !
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Is a Digital Bank:More than 11 mln unique
contacts with clients per day
More than 70 Appsfor smartphones
Online sale oftickets
Banking services viatablets
Switch to self-servicing
Privat24(more than 3 mln.
users) Online cashcollection
Service of workinghours electronic
recording based onpayroll projects
Electronic documentscirculation
Service of courierdelivery to the bank
post boxes
PrivatBank – mix of IT company and digital bank
FX deposits, eq. of USD mln.
UAH deposits, UAH mln.
(at the exchange rate as of 01.06.2016 – 25.17 UAH/USD)
Retail deposits dynamics
Weighted average interest rate, %
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UAH USD
Source: management accounts (unconsolidated)
Appendixes
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PrivatBanktechnologies andinnovations
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iGov – electronic governmentPrivatBank, on the basis of its in-house innovations and free of charge,
arranges for the government projects / services integration intoelectronic form
The following on-line services have been launched so far:
• State Migration service• State Fiscal Service• State Land agency• State Traffic Inspection• Ministry on internal affairs• Office of Labor and Social Protection• City executive office• Registration service of administration of justice• Regional executive office• Office of architecture, capital construction and housing and communal services• Pension fund• Office of industry and ecology
and other services
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Corezoid is a cloud OS developed
It allows anyone to create their own "digital core“.
Corezoid by PrivatBank
The key advantages ofthe system are: theopportunity to move toCorezoid with minimalinvolvement ofdevelopers and supportof business-processeswithout the need forprogramming skills.
Source: The Banker magazine, February 2016
Technological innovations keep Ukraine’s PrivatBank in the leading position in Central and Eastern Europe.
BUSINESS PROCESS CONVEYOROn August 10, 2014, PrivatBank’scentre for electronic businesscelebrated an important event:Business Process Conveyer(http://middleware.biz), PrivatBank’sinnovative new technical solution, hadsuccessfully performed 5 billiontransactions.
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PrivatBank: driven by superior innovation
PROGRAMMING ROBOTSIf you were to pay a visit to PrivatBank’s headoffice, you may be surprised to meet robotsin its corridors. ‘Quadcopter’ is learning todeliver plastic cards to customers (say “hello”to Amazon), and clever workaholic ‘Ben’, arobot vacuum cleaner, is cleaning rooms.The Conveyor can not only configurebusiness processes, but also programhardware such as cash machines, POS-terminals and any robotic devices.
TOPLESS ATMHave you ever wondered why ATMs havescreens? PrivatBank’s latest innovation – the‘topless’ (screenless) ATM, took first place inthe Finovate 2014 Spring conference in SanFrancisco. Android OS devices, as well asGoogle Glass can operate the world’s first‘topless’ ATM. Topless ATM can be operatedfrom the screen of a smartphone. Incomparison with a conventional ATM, thenew ATM consumes eight times less energy,consists of four times fewer components andis two times cheaper to manufacture.
CONSOLE“I would like to pay myinternet bill,” writes aclient in chat. “Will yoube paying your providerPEOPLE.net, Hrv100from your salary card,as usual?” Asks our on-line robot. “Yes, I willbe.” - “Done!” Consoleallows the bank’scustomers to askquestions by talking livethrough their smartphone to receiveanswers from the pre-programmedrobots and makepayments instantly.
24/7 SERVICE FOR CORPORATESCan a modern bank afford to close at 6PM at the end of the day? Or close onweekends and holidays? PrivatBank issure that it cannot: the competition will inno time sweep away businesses that riskusing the services of ‘slow banks’. Over athird of the country’s companies and halfof the country’s entrepreneurs havecurrent accounts in Privatbank. Thanks toremote online services they can, in amatter of minutes, receive and makepayments nationwide and also carry outdozens of other transactions around-the-clock and seven days a week, includingat week-ends.
INTERNET STORE: ‘THE SHOP’According to GfK, Ukraine has 20 millionInternet users, of which only 3 million haveever made online purchases. PrivatBank’snew project, ‘The Shop’, is designed to teachon-line shopping to the remaining 17 millionpeople. Thanks to ‘The Shop’ the customerscan, with the help of advisers, choose anyitem online while in a PrivatBank branch,immediately pay for the order and its delivery,and also get an interest-free loan for thepurchase.
PrivatBank applications for smartphones(Android, IOS)
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Privat24For any financial operations withmoney and plastic cards 24/7, fromany point of the world.
Emergency cashTo withdraw cash fromPrivatBank’s ATMs without a card(if it is unavailable).
SendMoneyTo send money to any plastic card– without an internet connection.
IPayAllows to pay with Visa andMasterCard plastic cards viamobile phone, tablet or PC.
SMS-bankingSending of SMS-bankingcommands in a couple of clicks.
PrivatHelpTo give signals of a broken or dirtyATM-machine, payment terminal orout-of-work screen in the branch /outlet and etc.
PhotoCashDeskAllows to pay bills through takinga photo – a picture wil be send toPrivatBank for processing.
Saving boxTo save your money quickly.
Bonus PlusA complete list of merchants –partners of the «Bonus Plus»program in your smartphone.
PrivatMapHelps to promptly find location ofthe branch/outlet, terminal or anATM of PrivatBank on the map.
PrivatAgentAllows PrivatBank’s agents topromptly send informatopn on theclients interested in the bank’sproducts.
PrivatBank has developed andimplemented about 50 mobileapplications for smartphones,which make banking accessiblefor the client from any point ofthe world at any time!
Source: The Banker magazine, July 2012
Ten innovations that PrivatBank was one of the firstto implement in the world"PRIVATBANK WAS THE FIRST BANK IN THE WORLD TO OFFER ITS CLIENTS SMS BANKING SERVICES""PRIVATBANK WAS THE PIONEER TO INTRODUCE TO THE INTERNET THE VISA MONEY TRANSFER TECHNOLOGY THAT ENABLED VISA CARDHOLDERS TO CONVENIENTLY TRANSFER FUNDSKNOWING THE RECIPIENT'S CARD NUMBER ONLY, AT ANY TIME, AND DIRECTLY VIA HIS OR HER PERSONAL COMPUTER.“
1. OTP PASSWORDSVIA SMS
2. MINI PAYMENTTERMINALS
3. ELECTRONICCHANGE
4. ONLINEENCASHMENT
5. SMS BANKING
6. ELECTRONICVOUCHER
7. INSTANT CARDS
8. CARDSCONNECTING
THROUGH ATMS
9. CHARITY VIAATMS
10. P2P TRANSFERSBETWEEN THE
CARDS
In 2000, PrivatBank was the global pioneer of the Dynamic One Time Password technology implemented for internet banking by coupling aplastic card with the mobile phone number. Each internet transaction is now authenticated by a dynamic one time password sent via SMS tothe client's phone. Such a combination made Internet payments as safe as possible and completely eradicated fraudulent transactions ininternet banking, The total number of Privat24 users is more than 4 million and the system handles about 190,000 transactions daily.
In 2010 PrivatBank became the second after Square to implement mini payment terminals, which were simple to operate and able to accept anypayments by Visa/ MasterCard via smart phones, tablets and notebooks. Currently, each sixth terminal in Ukraine that accepts payments bybank cards is the PrivatBank's terminal.
The Electronic Change technology implemented in 2009 in PrivatBank's cash offices reduced the coin turnover costs. If a client so desires,small change is credited to his or her mobile phone account or released as an electronic voucher that may be used in Privat24 Internet Bank.Technology is recognised as the 2010 Best Banking Innovation in Cash and Treasury Technology, according to the rating by The Banker.
This technology was also recognised in 2011 as one of the best in the world (Innovation in Banking Technology Awards rating from TheBanker). This innovation of PrivatBank enabled to resolve in the simplest way one of the fundamental problems arising out of bankingtransaction in cash, which is accounting of revenues before they are delivered to and recounted by the bank. Online encashment technology isnow in place in more than 2500 Ukrainian companies.
In 1999, PrivatBank was the first bank in the world to offer its clients SMS banking services. Now more than 1 million transactions are made via SMSbanking each month. PrivatBank was the first in Ukraine and among the first in the world to introduce a payment application for Android and iOS devices.More than 200,000 of Privat24 applications have been already activated and about 10% of Internet banking transactions are made via mobile devices.
In 2003, PrivatBank closed the first transaction in the world to transfer funds between Visa cards. In 2006, PrivatBank was the pioneer tointroduce to the internet the Visa Money transfer technology that enabled Visa cardholders to conveniently transfer funds knowing therecipient's card number only, at any time, and directly via his or her personal computer.
An opportunity to collect charity payments via ATMs, as introduced by PrivatBank in 2006, revived an idea of large-scale charitable activities inUkraine. Clients may transfer any contributions, even small amounts, via ATMs to support charitable programmes. The technology is built upso that it may be very quickly adjusted, for example, if it is necessary to collect donations intended to those who suffered from terrorist acts ordisasters. The total amount of charitable contributions so collected via ATMs may exceed Hrv20m ($2.5m).
A unique Payment Coupling technology introduced in 2011 enables using a client's card as an identifier of all of his/her bank cards andaccounts. If funds available from one of the cards are not sufficient, the system will automatically offer to use available funds from the othercard to complete the payment.
In 2003, PrivatBank was the first in the world to commence mass issue of instant cards, significantly increasing its share on the plastic cardmarket. This technology currently enables the bank to spare its clients the time needed to replace expired cards. To have the card re-issued, itis sufficient for the client to activate an instant card in any ATM.
In 2000, when PrivatBank introduced electronic vouchers to replenish accounts of mobile communication devices instead of their paper formand commenced to sell them via POS terminals and ATMs. PrivatBank is now the biggest operator acting on the Ukrainian market of instantpayments for mobile communications. More than 200,000 accounts of phones serviced by Ukrainian mobile operators are daily replenished viaPrivatBank.
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PrivatBank innovations – useful links• International Finance Magazine “Banks in Ukraine have experienced increase in volume”:
http://www.internationalfinancemagazine.com/article/Banks-in-Ukraine-have-experienced-increase-in-volume.html
• “PrivatBank is one of the first banks worldwide to offer API-based and open source IT-architectureservices” - Chris Skinner, Value Web: https://en.privatbank.ua/news/-privatbank-is-one-of-the-first-banks-worldwide-to-offer-api-based-and-open-source-it-architecture-services-chris-skinner-value-web/
• PrivatBank launches public credit service for Ukrainian businesses:https://en.privatbank.ua/news/privatbank-launches-public-credit-service-for-ukrainian-businesses/
• PrivatBank launches plugins for prompt implementation of option for payment by installments inonline shops: https://en.privatbank.ua/news/privatbank-launches-plugins-for-prompt-implementation-of-option-for-payment-by-installments-in-online-shops/
• PrivatBank launches Papka24 – electronic document exchange service for Ukrainian businesses:https://en.privatbank.ua/news/privatbank-launches-papka24-electronic-document-exchange-service-for-ukrainian-businesses/
• PrivatBank combines POS-terminals with cash registers for small businesses:https://en.privatbank.ua/news/privatbank-combines-pos-terminals-with-cash-registers-for-small-businesses/
• COREZOID Process Engine: https://new.corezoid.com/
• International Banker “The Dark Side of APIs in FinTech: Why Duplicates Slow Down Innovation”:http://internationalbanker.com/technology/dark-side-apis-fintech-duplicates-slow-innovation/
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PrivatBankawards andrecognition
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PrivatBank named best Ukrainian bank at Europe BankingAwards 2015
PrivatBank has been acknowledged as the best Ukrainian bank in theEurope Banking Awards 2015 ranking.
According to the magazine’s release, PrivatBank was named as the bestUkrainian retail bank.
“We proudly announce the best banks of Central and Eastern Europe, fortheir accomplishments despite the very challenging yet rewarding year forthe region's banking system” - according to the magazine’s release. -Editorial experts recognised the best financial institutions among retail andinvestment banks as well as asset managers, brokers and consultancies.”
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PrivatBank is recognized for its high quality payment processing
PrivatBank got awards for high quality service for internationalpayments for the year 2015 from two esteemed international banks –Commerzbank AG and JPM Chase.
PrivatBank has been awarded by both institutions for ten years in a row and onceagain confirmed its reputation as a financial institution which responds quickly tochanges in the requirements of international payment operation registrations.
PrivatBank’s restructuring of itssubordinated debt and eurobonds for
the total amount of $420 mln wasrecognized the deal of the year inEurope “Deals of the Year 2016Awards” by the magazine The
Banker.Sole solicitation agent was
Commerzbank. The transaction wascompleted in November 2015
“Deals of the Year 2016 Awards”
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Source: the Banker magazine
Lyudmyla ShmalchenkoDeputy Chairman of the Board –Director of TreasuryPJSC CB “PRIVATBANK”, Ukraine
Tel. +38 056 7161507mailto:[email protected]
PrivatBank is the bank for those who love Ukraine!
Yuri SpasovInternational Financial InstitutionsTreasuryPJSC CB “PRIVATBANK”, Ukraine
Tel. + 38 056 7161454mailto: [email protected]
Contact information:
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