General information about the activities
Open Joint Stock Company "Ukrainian Professional Bank
Ukrainian Professional Bank - a bank with 100% Ukrainian capital, which is not
has foreign loans.
97.94% of shares belong LLC UIFA, which is controlled by the Chairman of the Supervisory
Board Balushtsi E. M.
All provisions regarding the formation of mandatory reserves, special reserves
active operations and economic standards required by the National
Bank of Ukraine, carried out in full.
According to the ratings of the Association of Ukrainian Banks, Inc. "UPB" is a Top-50
All financial figures.
Financial indicators Bank confirmed International audit
Company "Deloitte & Touche", which is a permanent auditor JSC UPB since 2002.
Ukrainian Professional Bank in all regions of Ukraine: the network
Bank has offices and 32 branches, and under development strategy
2011, the Bank plans to increase the number of branches to 70.
During 2009 the company "Credit-Rating confirmed Ukrainian
Professional Bank investment grade credit rating "uaBBB" (weather-
stable).
UPB is a member of the Association of Ukrainian Banks (since 1992), Kiev credit -
Union Bank (since 1994), a permanent member of Guarantee Fund
individuals (from 2000), clearing bank the airplane "UkrKart party Kiev
International Stock Exchange (since 2001), the Professional Association of Registrars and Depositories,
Bank Pension Fund authorized by law to pay pensions and grants,
associate member of the AC "VISA International", a member of the group of users SWIFT,
by Reuters.
January 30, 2010 the Bank celebrated 18 years. JSC UPB - one of the few
Ukrainian banks, licensed by the NBU to perform all banking operations
(Lits NBU № 132 dated 04.10.2001 City)
Name, location of bank
Open Joint Stock Company "Ukrainian Professional Bank has been working on
banking market in 1918, is the successor of the Joint Stock Bank Meblibank "
18
created by the decision of the constituent meeting of shareholders (Minutes № 1 of March 16
1994), through reorganization of the Commercial Bank of furniture industry
Ukraine "Mebliprombank (registered by the National Bank of Ukraine on January 30
1992 by number 83) with limited liability in the Joint Stock
Company Joint-Stock Bank Meblibank.
According to a general meeting of shareholders on 18 July 1997 (protocol
Number 9) entitled "Joint-Stock Bank Meblibank changed to" Stock Bank "Ukrainian
Professional Bank.
Following decision of the General Meeting of shareholders dated July 2, 2001 (protocol
Number 3) the Bank Joint Stock Bank "Ukrainian Professional Bank" is changed to
Open Joint Stock Company "Ukrainian Professional Bank".
Open Stock company "The Ukrainian Professional Bank is
assignee of all rights and obligations of joint-stock bank "Ukrainian
Professional Bank.
Full official name of the Bank:
Ukrainian Language: Open Stock company "The Ukrainian
Professional Bank ";
Russian Language: An open Joint Stock Society "Ukrainian
Professyonalnыy Bank;
English: Joint-stock Corporation "Ukrainian Professional Bank".
Abbreviated official name of the Bank:
Ukrainian: JSC UPB;
Russian: OAO "UPB";
English: JSC "UPB".
Bank registered in Ukraine. Home institution of "UPB" is a
URL: Ukraine, 02660 Kyiv, vul. M. Raskovoy 15.
Bank branch:
Kyiv
st. Thieves, 33
tel.: (044) 486-22-44
st. Grigorovich-Barsky, 1 (TC "Land")
tel.: (044) 402-59-85
Ave. Mayakovsky, 43 / 2
tel.: (044) 515-26-74
Ave. Ak. Glushkov, 13-B (Shopping Mall "Magellan")
19
tel.: (044) 496-13-52
st. Plywood 1 (for "Fanplyt)
tel.: (044) 559-73-24
st. Wood, 5
tel.: (044) 467-79-34
Ave. Ak. Palladin, 18/30
tel.: (044) 585-48-70
Ave. Preferred 14
tel.: (044) 585-54-73
st. Borispilska 9
tel.: (044) 369-52-60, 369-52-61, 369-52-62
Kyiv region
White Church,
Blvd. 50 years of Victory, 52
tel.: (045 6) 38-29-19
Brovary
Blvd. Independence, 2
tel.: (045-94) 55-799, (044) 362-87-35
Dnipropetrovsk
Dnepropetrovsk
st. Station 6
tel.: (056) 375-62-14
Dneprodzerzhinsk
st. Passing tupik, 3, of. 1Б
tel.: (0569) 53-31-34
Krivoy Rog
st. Nogina, 23, fn. 47
tel.: (0564) 95-93-78, (056) 401-01-91, phone / fax: (056) 401-01-45
Donetsk Oblast
Donetsk,
st. 50 years of the USSR, 160
tel.: (062) 337-50-83, 337-31-68
Transcarpathian Region
Uzhgorod
st. Goydy 24
tel.: (0312) 45-02-24
20
Zaporozhye region
Zaporozhye
st. Truth 49, Office 1937
tel.: (061) 224-63-85
Ivano-Frankivsk region
Ivano-Frankivsk
st. Hetman Mazepa, 38 / 1
tel.: (0342) 50-15-70, 72-10-68
Lugansk
Lugansk
st. Newspapers Lugano Pravda, 155/21
tel.: (0642) 71-95-92, 71-95-91
Lviv
Lviv
st. TRADING 45
tel. (0322) 95-62-69
Stry
st. P. Obalya 2
tel. (03245) 419-79
Mykolaiv region
Nikolaev
Ave. Stalingrad, 13 (Shopping Mall "Magellan")
tel.: (0512) 48-99-11, 48-99-10
Odessa
Odessa
st. M'yasoyedivska 4
tel.: (048) 732-67-84
Poltava region
Poltava
st. Rosa Luxemburg, 7
tel.: (0532) 615-419, 615-420, 615-418
Kremenchug
st. September 29, 7
tel.: (0536) 79-94-48, 79-94-41
Sumy region
Amounts
st. Proletarian, 57
21
tel.: (0542) 770-641, 770-642, 798-137
Konotop
Ave. Peace, 3
tel.: (05447) 6-55-31, 6-31-90
Kharkov
Kharkiv
st. Chernyshevskaya 85
tel.: (057) 700-36-86, 700 40 97
Kherson region
Kherson
st. Decembrists, 45,
tel.: (0552) 45-51-01, 46-15-00, 46-15-01
Khmelnytsky region
Inc
st. Zarichans'ka, 5 / 2
tel.: (0382) 75-28-86, 75-28-85
Cherkasy region
Cherkasy
st. Khreshchatyk, 188
tel.: (0472) 378-220, 322-471, 322-472
Chernivtsi region
Chernivtsi
st. Main, 65
tel.: (0372) 579-218, 579-257, 579-242
Change of name and location of the Bank since the previous
balance sheet date has not happened.
Organizational - legal form of Bank
Open Joint Stock Company.
Closing date for the reporting period
Reports filed as at 31.12.2009 was the 2009 financial year.
Functional currency and reporting units of measurement
Financial statements submitted to the National Bank's monetary unit of Ukraine
in thou.
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The name of the governing body, which is run by bank
Bank management exercise general meeting of shareholders, the Supervisory Board,
Board. Open Joint Stock Company "Ukrainian Professional Bank" is
independent business entities and has no parent company.
Activities, which provides and intends to carry out bank
Under the current legislation, licenses and permissions granted to Bank
(Banking license number 132 dated 04.10.2001 was, written permission of the NBU to conduct
banking operations № 132-4, Annex to the written permission № 132-4 of 30.09.2009)
Charter of JSC UPB, the Bank has the right to:
Banking license number Acceptance of deposits (deposits) from businesses and individuals.
132 dated 04.10.2001 was
Establishing and maintaining current customer accounts and banks
correspondents, including transfer of funds from these
accounts by payment instruments and credit
money to them.
Placement of funds on its behalf, on its own terms
and at your own risk.
The Bank also listed is entitled to exercise such operations and
Deal:
1) operations with currency values;
2) issue equity securities;
3) Purchase and sale of securities on behalf of
customers;
4) transactions in the securities market on its behalf
(Including underwriting);
5) provision of guarantees and warranties and other obligations of
third parties who provide for their execution in cash;
6) acquisition or disposition of the claim pursuant to
commitments in cash for goods or services
services, taking the risk of such claims and
receive payments (factoring);
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7) leasing;
8) services on storage and renting
safes for valuables and documents;
9) issue, purchase and sale of checks, bills and
other payment instruments;
10) issue of bank cards and transactions
use of these cards;
11) advisory and information services for
banking operations.
Written permission Bank Making investments in registered funds and shares of other
to conduct entities.
banking
Issue, circulation, redemption (distribution)
№ 132-4, Annex to
state and other monetary lottery.
written permission
number Operations on behalf of clients or on their behalf: to
132-4 from 30.09.2009: money market instruments, with instruments based
on exchange rates and interest from financial futures and
options.
Asset management and securities under
agreements with legal entities and individuals.
Banking license number Operations with currency values.
132 dated 04.10.2001 was,
Issue of own securities.
Written permission Bank
Purchase and sale of securities on behalf
to conduct
clients.
banking
№ 132-3, Annex to Operations on the stock market on its behalf
written permission (Including underwriting).
number Making investments in registered funds and shares of other
132-3 of 14.09.2005 p entities.
Issue, circulation, redemption (distribution)
state and other cash lottery.
24
Transportation of currency values and collection of funds.
Operations on behalf of clients or on its behalf:
- From money market instruments;
- With instruments based on exchange rates and
percent;
- With financial futures and options
Asset management and securities under
agreements with legal entities and individuals.
Depository of the custodian.
Work to register securities holders.
Subject to availability Guarantees, warranties and other obligations for third
without a banking license individuals who provide for their execution in cash.
the written
Acquisition or disposition of the claim pursuant to
permission of the National
commitments in cash for goods or services
Bank of Ukraine:
services, taking the risk of such claims and
receive payments (factoring).
Leasing.
Services on storage and renting
safe deposit boxes and documents.
Issue, purchase and sale of checks, bills and
other payment instruments.
Issue bank cards and transactions
using these cards.
Providing advice and information services for
banking operations.
According to the JSC UPB is by the State Register of Encumbrances
agreement with movable property.
State
now
"Information
Center for Ministry
25
Justice of Ukraine,
According to the JSC "UPB" serves as the payment of pensions and
agreement with Assistance provided for the payment of pensions and
Pension Fund
assistance with the consent of pensioners and beneficiaries.
Ukraine and
Ministry of Labour and
Social Policy
Ukraine
According concluded Issue and acquiring cards PS "UkrKart", VISA
contracts
Strategic Goal Bank
Strategic objective: to be bank dynamic is profitable and
high-tech markets in which it operates.
The main goal: to consistently high returns to shareholders, the constant
increase revenues and profits of the Bank staff.
The mission of Open Joint Stock Company "Ukrainian Professional Bank" is
providing enterprises of all forms of public ownership and a professional and comfortable
banking services by providing quality services to promote the advancement and
development of business customers.
The Bank is based on fundamental values such as:
reliability and reputation - customer confidence in the Bank;
Professionalism - the high standards of work;
responsibility - the ability to keep promises;
honesty - transparency and predictability of action;
Partnership - the ability to find the best ways for cooperation;
balance - maintain a balance between the public and private,
balance in the relationship.
26
Membership in associations, organizations, foundations, systems and partnership of the Bank
Association, which registered banks, Partners Bank gains
Year of entry
Association of Ukrainian Banks, 1992. Audit Firm Blyskor.
Association established to promote Auditing Bank
Ukraine's banking system, national standards
representing the interests of its members in accounting and reporting.
public administration and management,
protection of banks, providing links
with the public.
Ukrainian Credit and Banking Audit Firm PrJSC Deloitte &
Union, 1994 Touche USC. Bank Auditing
by international standards
financial statements.
Deposit Guarantee Fund The rating agency "Credit-
Persons, 2000. Fund guarantees every ranking, since 2007, held
depositor of the Fund participant compensation comprehensive analysis of operational and
funds for its deposits, including financial activities, circumstances
interest in the amount of deposits per day affect the solvency
become unavailable, but not Bank credit and determined its
Over 150 000 of deposits in national scale rating on
Each of these participants. investment level «uaBBB».
Kiev Interbank Stock Exchange Payment System UkrCard. As
2001. Market Institute settlement bank payment system
national importance for UPB offers correspondent
work in the securities market, based accounts bank-party payment
organizational structure is put system performs mutual between
world trade standards that are required banks, according to information provided
for international flows clearing house;
financial instruments. forming limit authorization
27
Association, which registered banks, Partners Bank gains
Year of entry
Professional Association of Registrars and correspondent accounts of banks
Depositories participants.
Among the main objectives of PARD is:
execution
features a self-regulatory organization of the
market
securities in accordance with applicable
legislation of Ukraine, to promote
creation and development of infrastructure
securities market in Ukraine; protection
"First All-Ukrainian Bureau International payment system «VISA»
rights of security", 2006. Collection,
Credit Histories holders
processing, storing and providing Pension Fund of Ukraine. Payout
information on the timely implementation pensions and grants the consent
physical and juridical persons pensioners and recipients of cash
financial obligations, increase assistance, payment of wages
protection of creditors and debtors; employees of budgetary institutions and
reduce credit risks, promoting government social assistance.
increase transparency on
financial services market and the formation
positive image of bona fide
borrowers strengthen their business
reputation and its investment attractiveness.
Practice Bank
Open Joint Stock Company "Ukrainian Professional Bank" has the license and
permission of the National Bank of Ukraine to perform all kinds of banking operations.
Providing services in different spheres of the economy determines the JSC UPB as
financial and credit institution of universal type.
28
Banking
In 2009, to the overall difficult financial situation
banking system performance JSC UPB "distinguished and stability
growth. This is evidenced by changes in the assets of 1,813,192 thousand. As for
31.12.2008 to 2.20827 million UAH. by reporting year that is growth
122%.
In the assets of the Bank as on 31.12.2009, the largest portion (64%)
or 1 530 million USD. take up loans to customers, including loans to entities
business - 1 365 million USD. and individual loans, debt
which at the end of the year was 165 million USD. In addition, a significant proportion of assets
hold securities (9%), due from banks (21%), funds the National Bank
Ukraine (2%), fixed assets and cash (4%). Other investments by the Bank as
31/12/2009 by less than 1% of total assets.
In comparison with
Assets at 12.31.2009, the
196 629
57 701 structure of assets
3% 525 471
9%
24%
Bank as per
31.12.2008
the changes
1 426 095
held in shares
64%
Treasury operations and mizhbankivski
Transactions with customers
Transactions with securities and other assets and liabilities F inansovi and capital investment
29
loans to individuals (the share dropped from 12% to 7%) and relatively
the funds in other banks. - Their share increased from 11% at the beginning of the year
21% at the end of the year.
Despite the negative trends in the banking market in 2009, Open
Stock company "Ukrainian Professional Bank not reduced amount
liquid assets. As at 31.12.2009, the cash and precious metals in
box office totaled 28 209 thousand. and the funds placed in accounts at other banks and
loans to banks with the exception of special provisions for these transactions amounted to 499 748
thous.
Dynamics of the funds are placed with other banks and provisions for spe ence
debt of other ba nkiv
million.
500 0
450 -1
400
-2
350
Additional axis (reserves) mln
300 -3
250 -4
200 -5
150
-6
100
50 -7
0 -8
Due to banks Provisions for liabilities of other banks
In total
assets Bank
Credit portfolio of "UPB 2009
Most share
cover operations
clients 65% on
143092
789 9% end fiscal year
0%
and 1364002 73% on end
84%
-104149
2008.
6%
Loans
738
in 0%
21623
2009 was
1%
directed on
maintenance
activity subjects
Loans to legal entities Credit and entrepreneur Mortgage and idioms
entrepreneurs
Other loans and idioms Spozhiv chi credit and idioms
Provision for loan impairment s
30
entities - clients, in particular by providing loans for overdraft conditions
(8896 thous. At the end of the year, representing 237% growth per year), total
loan portfolio of corporate business operations amounted to 1 365 million USD. or
96% of net loan portfolio, lending to individuals was carried out at
75% of the amount at the end of 2008.
The tendency to increase in assets occurred due to the strengthening position of "UPB"
market credit. The volume of loans to customers of the Bank generated net
reserves at the end of 2009 was 1426 million. by 2009 the volume of loans to customers
increased by 101 million.
During the reporting period in the structure of the portfolio of loans to customers, there were
changes. The volume of loans in the private sector decreased by 54 million.
Accordingly, the credit business entities increased by 201 million.
At the end of 2009 outstanding loans to individuals amounted to
165 453 thous., Indicating the reduction of debt by more than 54 million
Bank's loan portfolio during the reporting year was marked by high quality. Risks for
credit transactions covered by the creation of special reserves for
possible losses on credit operations, according to current legislation
Ukraine. At the end of the fiscal year amount of provisions for credit operations of "UPB"
(Excluding interbank) is 104 149 thousand. Provisions made in
full.
Provisions on interbank loans provided at the end of 2009 created in
volume, representing 0,28% of the amount due from other banks before the JSC UPB.
Coverage loan portfolio created special provisions for
end of 2009 is 6.85%.
Dynamic development of active transactions with customers in the reporting period
ensured a balanced reinforcement liabilities of the Bank rests on capital
clients, including coherent policy regarding the relationship between assets and liabilities
in national and foreign currencies.
Due to customer accounts and time deposits of individuals and legal
persons is 992 347 thousand. as at 31.12.2009.
31
The largest share in customer
The obligation of "UPB" of 2008-2009 are time savings
41 826
4% 0%
94 772 individuals 616 315 thous. or 62%
10%
commitments to customers. Together with
6% 1%
12%
in current accounts and
174 990
18%
accounts deposits to questions
15%
JSC "UPB" generated 31% of liabilities
3%
through the private sector. Funds for
63%
64 444
616 315
6%
demand and term deposits of subjects
62%
Funds m istsevyh etiv budgets and budgets etni k oshty k liyintiv that abstentions uyut by Xia Business activity is
by m istsevyh budgets etiv
Funds for OSU sub'yik tiv tive management
respectively 10% and 18% commitment
Term ovi k oshty sub'yik tiv Farming odaryuvannya
Costs for individual measurements OSU to our clients.
Term ovi k oshty individuals
Funds nebank ivs rolled their financial institutions
Open Joint Stock Company
"Ukrainian Professional Bank
operates in the interbank market, serving corporate customers
and individuals. At the end of the year the Bank's customers is 34 902 persons, of which - 2 146 -
economic entities, 32, 740 - individuals.
At the end of 2009 the Bank raised the interbank market resources
498 million., Including 250 million. on correspondent accounts with other banks
248 million USD. - Loans from other banks. In addition, at the end of the year Ukrainian
Professional Bank used the funds raised from the National Bank of Ukraine
volume of 209 million USD. At the same time transactions in the interbank market were balanced
respective active transactions with banks in the total amount (minus formed
reserves) 466 620 thousand USD.
At the end of year 311 588 thous. was drawn from economic agents
activities 680 759 thous. from individuals, 31% and 79% of funds raised from clients
respectively. Cabinet of Ministers of Ukraine is not a client of the Bank.
Own capital
Equity structure, the Bank 12/31/2009
8 17 247
0% 4%
443 171
96%
32
Authorized Capital and other funds of the bank Results pereotsinky
Results of the Bank
In the year shareholders' equity reached 460 426 thousand. Changes in shareholders'
capital associated with a positive financial result for the 2009 financial year
(17 247 thousand USD.).
Results from banking and other operations.
Bank Financial year ended with a positive financial performance, which
is 17 247 thousand USD.
Structure of the Bank's earnings per 31.12.2008
9% 0%
1% Interest income
7%
Komisiyni income
Result from trading
operations
Other Operating Income
Other income
83%
Structure of income by the Bank 12/31/2009
5% 0%2%0%
Interest income
Komisiyni income
Result from trading
operations
Other Operating Income
Other income
93%
For 2009 the Bank received 334 284 thous. income. The biggest part of
income (93% of the total) took interest income - 321 711 thousand USD. Bank
got 62 316 thous. interest income than in 2008. However,
amount of commission income and trading results from operations in the reporting year
decreased from the previous reporting year and is under
19 219 thous. and 1 708 thousand USD.
Lending operations - the main source of bank income. Most
share in the revenue structure of the Bank as on 12.31.2009, the interest income are
loans - 83% of total income or more 259 million USD. per year.
33
Among the important sources of revenue in 2009 should also be noted commission
income, they constitute 5% of bank income. Other sources are small amounts to
revenues of about 2%.
The cost has grown from 265 007 thousand. to 317 037 thousand., that is 120%
increase in the reporting year. Comparing this figure with the income growth rate (109% by
financial year), it should be noted that cost increases took place adequately to changes in
Bank's activities. Results of JSC "UPB" in 2009 provided a
income and maintain the level of return on assets 0.9%.
Cost Structure Bank 31.12.2008
4%
13%
61%
3%1%
Cost structure, the Bank 12/31/2009
2% No percentage in IT and RAO
15%
Komisiyni in IT and RAO
Other Operating in IT and RAO
General administrative RAO See No
in IT and RAO
62% Vidrahuv torque in reserve and
3% Submit the app to app profit
1%
Changes in cost structure caused mainly by increase in the share of interest
cost of funds of individuals and clients - legal entities, as well as
increasing allocations to provisioning costs and income tax.
Merger, consolidation, division, transformation of banks
In 2009 OJSC "UPB" did not carry out the reorganization of the Bank in any
way (through merger, consolidation, division, transformation).
Risk Management
In order to achieve the strategic objectives of the Supervisory Board
Bank to minimize the impact of risks on the Bank, a system
risk management.
34
Basic principles underlying the system of risk management:
- risks must be understood and usvidomlyuvatys Bank and its
management;
- level of total risks that the Bank faces in its work, should
be within the tolerance level set by the Supervisory Board of the Bank;
- solution for a certain amount of risk should
strategic objective of the Bank;
- expected returns to compensate risk adopted;
- Regulatory capital should cover the total amount of the risks
Bank is subject;
- striving to achieve high performance levels should
risk tolerance.
From the functional point of view of risk management in JSC "UPB" held at the
Level:
The Supervisory Board - approves development strategy, business plan and budget
Bank, and sets the overall level of tolerance of the Bank's risk.
The Board is responsible for implementing risk management strategies
the bank and banking operations within the risk tolerance,
established by the Supervisory Board.
The Internal Audit, which is not directly involved in the process
risk management, but should assess the adequacy of existing control systems
risk management requirements of the Bank.
For the current risk management in the Bank established special committees. They
monitor the financial condition of the Bank and the environment and determine
risk management measures in accordance with strategic objectives, development priorities
Bank approved Business Plan and the current market situation.
Special committees have the right to make proposals to the Board of Directors of the Bank
correction of the current activities of the Bank to increase its efficiency
taking into account the risks associated with banking operations.
Special committees:
Credit Committee - decides on granting or rejecting
proposals for active operations, and sets limits, conditions of
banking services;
35
Committee on Asset and Liability Management - conducts analysis of asset quality and
liabilities and shall submit appropriate proposals The Board, to improve and
improve the quality of assets and liabilities;
Pricing Committee - conducts market research on rates on bank
products, and submit relevant proposals The Board of tariff changes on
banking products;
Technology Committee - decides whether to improve existing and
development of new banking technologies and products, providing high quality
banking products and services, establishing technological maps and
manages the operational and technological risks.
Department of Risk Management - quantitatively and qualitatively evaluate the risks that are exposed
Bank in its activities, monitors for monitoring and timely reporting
The Board of all transactions that bear the risk. Department of Risk Management
independent (financially and structurally) from the units that accept the risk
(Front office), and units that record the acceptance of risk and control it
size (back office). Also head of the department has the appropriate status for
its independence from the leaders of other operational and / or functional
units and is part of the special committees. The right to "veto" in activity
special committees shall not apply.
Bank in their work identifies the following risks.
Credit risk - is the extent of possible deviations from the goals of the Bank arising
because of failure of a party committed to fulfill the terms of any
financial agreement with the Bank or otherwise commit.
Process determination credit risk in UPB distributed on assessment
individual and portfolio credit risk. Source individual
Credit risk is the single counterparty bank - borrower, the borrower, the issuer
of securities. Rating individual credit risk provides assessment
creditworthiness, ie its ability to timely and fully perform and
undertake. Separately, the optimal set limits
with this counterparty of active operations.
The source of portfolio credit risk is the total arrears to the Bank
Operations, which exposed to credit risk.
Credit Risk Management in the Ukrainian Professional Bank is
by assessing and monitoring the creditworthiness of borrowers, identify and
36
as setting limits on individual counterparties and on the kind of active operations in
separate subsection.
Liquidity risk - is the extent of possible deviations from the goals of the Bank arising
through the Bank's failure to fulfill its obligations in due time, would not tolerate
thus unacceptable losses.
Bank's policy on liquidity risk management aimed at optimizing
liquidity risk and return completed Bank operations. Risk
liquidity caused by the inability to manage unplanned outflow of funds,
changes in funding and / or execute off-balance sheet commitments. Department
risk management to develop recommendations for optimization of assets and
liabilities.
Interest rate risk - is the extent of possible deviations from the goals of the Bank
arising from adverse changes in interest rates.
In case of adverse fluctuations in market interest rates The Bank is exposed to
interest rate risk, which is the source of imbalance of assets and liabilities sensitive
to changes in interest rates. To reduce interest rate risk using
own approaches to risk management, interest rate. Whereupon
recommendations are core committee (ALCO) for further consideration.
Market risk - is the extent of possible deviations from the goals of the Bank arising
due to adverse fluctuations in the value of securities and foreign currencies according to the
instruments that are in the trade portfolio.
Source of market risk is the adverse dynamics of exchange rates and prices
interest rate instruments. Therefore, assessment of market risk used
VAR methodology, which has included the determination of possible losses from a given
probability, but prices can vary in the opposite direction, then the Bank
receive unplanned income.
Currency risk - is the extent of possible deviations from the goals of the Bank arising
due to adverse fluctuations in foreign currencies and precious metals prices.
Special attention is paid to the UPB to currency risk arising as a result
adverse changes in rates. The source is a risk-and off-balance
claims and liabilities denominated in one currency.
Operational and technological risks - is the extent of possible deviations from the goals of the Bank
arising from deficiencies of corporate governance, internal
37
control or inadequate information technology and information processing with
terms of scalability, reliability, continuity, management and control.
Operational and technological risk arises because of an error, delayed execution
activities, fraud, and inadequate information technology and treatment processes
information in terms of manageability, scalability, reliability, and control over
continuity of work, including through the inadequacy of strategies, policies and
use of information technology. Other aspects of operational and technological
risk include the likelihood of unforeseen events such as fires or natural
disaster.
Reputation risk - is the extent of possible deviations from the goals of the Bank in connection with the operation
external and internal factors that affect perceptions of the Bank's image
customers, partners, shareholders or supervisors.
Reputation risk affects the bank's ability to establish new relationships with
contractors, provide new services or maintain relationships that last. Negligent
attitude to risk may lead the Bank's reputation for financial losses or reduction
customer base.
Reputation risk, public perception of the image of the Bank can be divided into two
category:
perception market ie constant clients contractors,
Shareholders, potential customers;
perception of regulatory agencies, the National Bank
Ukraine, State Commission on Securities and Stock Market State
Tax Administration, other government agencies.
Legal risk - is the extent of possible deviations from the goals of the Bank in connection with
violations or failure to Bank requirements of laws, regulations,
agreements accepted practice or ethics, but also through the possibility of ambiguous
interpretation of the law or rules.
Bank is exposed to legal risk because of having relations with a large
number of stakeholders: clients, contractors, agents, agencies
supervision, tax and other competent authorities. Legal risk may
result in payment of fines and administrative penalties, monetary
damages, damaging, deterioration of the Bank's position in the market
38
narrowing opportunities for development and reduce the possibility of legal
transaction.
Strategic risk - is the extent of possible deviations from the goals of the Bank in connection with
incorrect administrative decisions, improper implementation of decisions and inadequate
response to changes in business environment.
This risk arises from the incompatibility: the Bank's strategic objectives, business
strategies designed to achieve these goals, resources employed to achieve these
objectives as the objectives of the bank.
The biggest risk in the banking activities in its impact on financial
stability and solvency of the Bank's credit risk, liquidity risk and market
risks. Open Joint Stock Company "Ukrainian Professional Bank" of
management major and other types of risk based on internal documents,
adopted by the governing bodies of the Bank, taking into account requirements and recommendations
National Bank of Ukraine and meet international banking practice.
The Bank developed and approved by the Board Action Plan against
unforeseen circumstances Joint Stock Company "Ukrainian
Professional Bank.
The plan allows you to reduce losses and the likelihood of their occurrence, increase
rate of recovery of the Bank.
The aim of the Action Plan are:
- minimize financial losses of the Bank;
- continued customer service and market participants;
- protection of employees and clients of emergency;
- mitigation of unforeseen circumstances
Bank, including its reputation, operations, liquidity, asset quality, market position and
ability to comply the legislation of Ukraine, including regulatory
of the National Bank.
The objective of the Plan is to protect the bank in case of unforeseen circumstances
as a result of which all or part of its operations will be halted and / or information
system and database destroyed.
The components of the Plan is to ensure continuity of activity and action in the event
emergencies and overcome the liquidity crisis.
39
In the case of a liquidity crunch guide the Bank Regulations responses to crisis
liquidity in the Ukrainian Professional Bank.
The relevant internal guidelines designed to reduce the risk of
Bank and to protect the interests of creditors and depositors and to identify risk
liquidity of the measures and procedures to be applied Joint Stock
Society "Ukrainian Professional Bank" in case of liquidity crisis and contain
indicative plan of management decisions, actions ensuing liquidity crisis
in the banking system.
Information on whether the bank at the reporting date of a temporary member of the Fund
Deposit Guarantee
At reporting date, Open Joint Stock Company "Ukrainian Professional Bank" is
permanent member of the Fund Deposit Guarantee (2000).
Bank Solvency
In 2009, the Bank fulfilled all requirements for mandatory
economic standards set by the National Bank of Ukraine.
Regulatory capital of "UPB" according to the data form № 611.01
(Used factors that a translation on regulation
banking activities in Ukraine, approved by the National Bank
Ukraine from 28.08.2001 N 368 and registered with the Ministry of Justice of Ukraine 09.26.2001
by N 841/6032, as amended) as at 12.31.2009 was made 469 299 thousand., including
Authorized capital - 380 000 thousand USD.
Respectively to values norm adequacy regulatory
capital / solvency (H2) which was constituted on 12.31.2009 and 22.72% standard
core capital adequacy (N3) at 20.28%, JSC UPB classification
National Bank of Ukraine classified as well capitalized banks.
The Bank for 2009 meets the requirements of current legislation concerning
reserve requirement, a general reserve, reserve requirements on
correspondent account in National Bank of Ukraine and special reserves
active operations.
Termination of certain types of banking operations
For 2009 JSC UPB did not stop to conduct banking operations, defined
licenses and permits, decisions, agreements and contracts of the Bank.
40
Restrictions on ownership of assets
JSC UPB has no restrictions on ownership of assets.
Corporate Governance
Bank management carried out by:
- The general meeting of shareholders;
- The Supervisory Board;
- Board.
Corporate governance in OAO "UPB" governed by the following internal
documents:
Regulations on identifying and managing conflicts of interest Public
Joint Stock Company "Ukrainian Professional Bank";
Regulation on Information Policy of Joint Stock Company
"Ukrainian Professional Bank";
Regulations on corporate strategy succession of Joint
Society "Ukrainian Professional Bank";
The provisions of the policy on risk management of Joint
Society "Ukrainian Professional Bank";
The provisions of policy transactions with related parties of Joint
Society "Ukrainian Professional Bank";
Regulations on Management of Joint Stock Company "Ukrainian
Professional Bank ";
Position about system compliance Open share Society
"Ukrainian Professional Bank" (Compliance-risk - the risk of legal sanctions,
financial loss or loss of reputation due to failure of the bank requirements
legislation of Ukraine, regulations, internal regulations and rules, and
camorehulivnyh as standards organizations that apply to its activities.
The failure to anticipate the impact of inappropriate actions of the bank employees may
negative public response and damage the reputation of the bank, even if it was not
violations of the laws of Ukraine.)
Position about policy Management main capital costs
Open Joint Stock Company "Ukrainian Professional Bank";
Banking Code of Ethics of Open Joint Stock Company "Ukrainian
Professional Bank ";
Standards of customer service JSC UPB "
The competence of the Supervisory Board comprises:
41
Control over the work of the Board on compliance with
legislation of Ukraine. Members of the Supervisory Board must
be aware of the activities of the Bank, have access to all
information that confirms the Bank may participate in
the Bank and its agencies (the Board, working groups, committees).
Addressing the acquisition of Bank shares issued by him.
The terms of wages and material incentives members
Board.
Decisions to issue bonds.
On the appeal of the Board approval of contracts (agreements).
Determination of the external auditor.
Establishment of the auditing and oversight of the financial
business activities of the Bank.
Decisions on establishment, reorganization and liquidation of subsidiaries
companies, branches and representative offices, approval of their statutes and
provisions.
Set the time of the General Meeting of shareholders and determine
order of their conduct.
Prepare proposals on matters submitted to a General Meeting
shareholders.
Appointment and dismissal of the Chairman, Board members and
chief accountant.
Adoption of Regulations on the Management Board.
Appointment and dismissal of Chief of Internal Audit Division.
Other powers delegated to the General Shareholders Meeting
Bank.
Members of the Supervisory Board are entitled to:
1) participate in meetings of the Board, working groups, committees of the Bank
(Supervisory Board);
2) obtain full and accurate information about the Bank needed to
perform their functions. Bank peruse documents, receive copies.
The above information and documents provided to members of the Supervisory Board for
no more than 10 days from receipt by the Bank to request that the name of Chairman
Bank;
42
3) call an extraordinary meeting of the Supervisory Board;
4) provide in writing comments on the decision of the Bank Supervisory Board;
5) receive a fair remuneration and fringe benefits for the implementation
functions of a Supervisory Board member. Remuneration is determined by
General Meeting of Shareholders.
Members of the Supervisory Board shall:
1) act in the interests of shareholders, honestly, reasonably and not exceed
their powers. Duty to act honestly and reasonably requiring
show integrity, be circumspect and proper caution that would be in person at such
position under similar circumstances;
2) guided in their activity by the current legislation of Ukraine, Charter Bank
these Regulations, other internal documents of the Bank;
3) execute the decisions taken by the General Meeting of Shareholders and Supervisory
Council of the Bank;
4) participate personally in the Ordinary and Extraordinary General Meeting of shareholders
meetings of the Supervisory Board. Notified in advance of the impossibility of participating in
General Meeting and meetings of the Supervisory Board, indicating the absence;
5) keep the Bank established rules and procedures for making
contracts, in the commission of which is interest (conflict of interest);
6) Follow all rules established by the Bank related to the mode of circulation
safety and security of classified information and information that contains
banking secrecy. Do not disclose confidential and insider information
banking secrecy, which became known in connection with performing the functions of a member
Supervisory Board, to persons who have no access to such information, as well as
use it in their interests or interests of third parties;
7) for 5 days to inform in writing the Supervisory Board and the Board
Bank about the loss of shareholder status of the Bank;
8) refrain from actions that may lead to loss of independent member
Supervisory Board of independence. In the event a member of the Supervisory independence
Council shall, within 5 days to inform in writing about this Supervisory
Board and Management Board;
9) to provide timely general meeting of shareholders, the Supervisory Board and the full
accurate information on the activities and financial position of the Bank.
Members of the Supervisory Board who have violated the duties entrusted to them, including the
compliance associated with the regime of circulation, safety and security information
43
restricted access and information pertaining to bank secrecy Policy
confidential and insider information, bank secrecy, which became known in
connection with performing the functions of Supervisory Board members, persons who have no access to
such information, and if you use it in their interests or interests of third
persons are liable in the amount of damage caused to the Bank, unless other grounds and
the liability is not established by the legislation of Ukraine.
Chairman and members of the Supervisory Board are personally responsible for
failure or improper performance of their duties.
Members of the Supervisory Board. The Supervisory Board consists of not less than five (5)
persons. The composition of the Supervisory Board comprises a Chairman and members of the Supervisory Board
Supervisory Board.
Members of the Supervisory Board may be shareholders of the Bank or their representatives.
Member of the Supervisory Board can not simultaneously be a member or Chairman of the Board
and (or) Audit Committee.
President and members of the Supervisory Board may not be the person who in accordance with
Ukraine is prohibited by law hold positions in government
business associations.
The composition of the Supervisory Board should be nominated and elected by the people who are
participants or members of the management entity, which competes with the activity
Bank.
Members of the Supervisory Board can not simultaneously be members of the Supervisory Board
more than two banks.
If in the process of the Supervisory Board of its members is less than 3
(Three), members of the Supervisory Board, which remained in its structure, must within 3 days
the date when it became known to provide a written request to the Board of
convene a Special General Meeting of shareholders to elect a new
Supervisory Board.
The Board is a standing executive organ of the Bank which shall
management of operating performance. Chairman of the Board appointed by the Supervisory
Council of the Bank. Members of the Board (excluding the Chairman of the Board) and appointed
dismissed by the Supervisory Board of the Bank for submission by the Chairman of the Board.
Board operates within the powers granted it by the Charter
Bank's General Meeting and Supervisory Board in accordance with
legislation of Ukraine.
44
Chairman and Board members are appointed from the shareholders or persons
with the Bank are in labor relations.
The Board, in total not less than 3 persons, composed of the President
Board, his deputies and members of the Board.
The Board directs all daily operations of the Bank and is responsible for
its efficiency. Board acts on behalf of the Bank is accountable to the Supervisory Board
Bank and General Meeting of shareholders, and organizing the implementation of their decisions.
The Board operates under the Charter of the Bank and these Regulations, approved
Bank's Supervisory Board.
The powers and responsibilities of the Board:
Board:
Organizes and manages the operational activities of the Bank and
ensures compliance with all banking transactions.
Decide to purchase bank shares issued by it (for
amount not to exceed 10% of authorized capital).
Make the decision on opening of bank branches.
Provides storage values.
Organized record keeping and reporting.
Decisions concerning recruitment, training and use of personnel.
Approve the Bank's internal documents (regulations about structural
bank branches, etc.).
Set interest rates on active and passive operations
Bank, and the size of commissions for services rendered by the Bank.
Establishes and approves rates for transactions of the Bank.
Responsible for organizing the budget process at the Bank. Submits to
approval of the Supervisory Board of the Bank budget. Supervises its implementation.
Determines the order records and documents.
Consider preliminary question submitted to the Supervisory
Council and General Meeting of Shareholders and prepares them for the necessary
materials and suggestions.
Organized by the implementation of decisions of the Supervisory Board and General Meeting
shareholders.
Resolve other matters submitted to the Board Chairman
or members of the Board.
45
Approve the composition of committees of the Bank.
Consider and approve the settlement of special reserves for active
operations.
The Board is responsible for the results to the Supervisory
Council of the Bank under the Bank's Statute, decisions of the General Meeting of Shareholders and
Supervisory Board.
Pricing Committee
The purpose of the Committee is to provide favorable financial terms of a
interests of depositors and other creditors and to take additional measures to
risk management.
The Committee examines the ratio of monthly cost of services and market
competitiveness of existing tariffs;
Committee responsible for the Bank on operating income;
The committee is entitled:
determine the mechanism of interest rates on active and
passive bank operations;
decide on methods of determining rates for services
provided by the bank;
consider forecasts and identify areas of optimization pricing
bank;
control correspondence true level yield operating
of planned actions and determine in its provision;
consider forecasting trends in market interest rates and
make proposals for rapid response to market conditions
according to the strategic and tactical objectives of the Bank;
control the bank's compliance with the requirements of regulations on matters
related to the tariff policy of the bank.
The Committee hears reports from the heads of individual business units in terms of
for operating revenue and take appropriate action.
Composition of the Committee approved the Management Board. The Committee includes:
Chairman, Vice-Chairman, Secretary and Committee members, chosen from among leaders
principal divisions of the bank.
46
Committee on Asset and Liability Management
The purpose of the Committee is to provide favorable financial terms of a
interests of depositors and other creditors and to take additional measures to
risk management.
The Committee considers the strategic directions of the credit - the resource of the bank.
The committee is entitled:
determine the coordination of active-passive activity;
decide on methods of financial risk management;
consider forecasts and identify areas of optimization of the structure of balance
bank;
monitor compliance with the actual and planned levels of profitability
determine action in its provision;
need to set up bank liquidity and continuous monitoring position
liquidity;
determine interest margin;
determine the current policy bank in lending;
consider short-and long-term forecasting tendencies
market interest rates;
define the Bank's strategy for its presence and role of markets;
determine Strategy on banking products and expediency
introduction of new ones;
approve the feasibility and prospects of development of bank network;
identify new priority areas of work;
monitor compliance with the Bank Regulations for Policy
Management liquidity determination and Minimize risk loss
liquidity.
The Committee hears reports from the heads of individual business units in terms of
implementation of active and passive operations and take appropriate action.
Composition of the Committee approved the Management Board. The Committee includes:
Chairman, Vice-Chairman, Secretary and Committee members, chosen from among leaders
principal divisions of the bank.
47
Credit Committee
The purpose of the Committee is to provide favorable financial terms of a
interests of depositors and other creditors and to take additional measures to
risk management.
The Committee considers the strategic directions of the credit - the resource of the bank.
The committee is entitled:
determine the coordination of active-passive activity;
decide on methods of financial risk management;
consider forecasts and identify areas of optimization of the structure of balance
bank;
monitor compliance with the actual and planned levels of profitability
determine action in its provision;
need to set up bank liquidity and continuous monitoring position
liquidity;
determine interest margin;
determine the current policy bank in lending;
consider short-and long-term forecasting tendencies
market interest rates;
define the Bank's strategy for its presence and role of markets;
determine Strategy on banking products and expediency
introduction of new ones;
approve the feasibility and prospects of development of bank network;
identify new priority areas of work;
monitor compliance with the Bank Regulations for Policy
Management liquidity determination and Minimize risk loss
liquidity.
The Committee hears reports from the heads of individual business units in terms of
implementation of active and passive operations and take the decisions
The Committee includes: Chairman, Vice-Chairman, Secretary and Committee members,
chosen from among the heads of major business units of the bank.
Technology Committee
Committee established to address issues of development and improvement of existing
new banking technologies, providing high quality banking products and
48
service application more events on reduction operational and
technological risk.
To this end, the Committee:
consider and decide on issues concerning the Bank's policies
feasibility of implementing new banking technologies;
consider and decide on the development of new bank
products, applications and monitoring of implementation;
consider and decide on the development of standard forms of contracts with
banking and other technological standard forms of documents;
examines and decides on the Bank's internal procedures for
technology for banking operations, which have no legal
nature;
consider and submit for the approval of the Bank Board regulations
(Regulations, instructions, orders, etc.) that govern the implementation
banking operations;
considering Conclusions Departmen Management Risk on operational and
t
technological risk, develop appropriate measures for its reduction
and gives them the Bank Board for decision.
Share leadership in bank shares
Management of the Bank owns shares in an amount of less than 1% share
capital.
Substantial participation in the bank
"Ukrainian Investment and Financial Alliance, which owns 97.94%
authorized capital of JSC UPB has a major stake in the bank.
Foreign investors and their share in the authorized capital
Open Joint Stock Company "Ukrainian Professional Bank is a bank with
national capital and has no foreign investors.
Employees at end of reporting period compared with the previous year.
At the end of 2009 the number of employees of the Bank amounted to 440 persons to 12 persons
more than at the end of the previous fiscal year.
Vik. Reutov LP
461-82-89
49
Annex 1
Balance Sheet
JSC "Ukrainian Professional Bank
as at 31 December 2009.
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
ASSETS
1 Cash and cash equivalents 4,29 306 382 112 129
Other financial assets carried at
2 fair value with recognition through profit or loss 5,29 10 535 196 034
3 Due to banks 6,29 219 089 135 817
4 Loans to customers 7,29 1 426 095 1 325 314
5 Securities held for trading 8,29 181 101 916
6 Investment Property 9 28 895 -
7 Accounts receivable for the current 1 673 -
Income tax
8 Deferred tax asset 25 - 72
9 Fixed and intangible assets 10 28 806 27 263
10 Other financial assets 11,29 701 544
11 Other assets 12 4 993 15 103
12 Total assets 28,29 2 208 270 1 813 192
LIABILITIES
13 Due to banks 13,29 707 041 339 799
14 Customer Accounts 14,29 992 347 1 003 255
15 Debt securities issued by the bank 15,29 29 380 23 372
16 Commitments to the current income tax - 1 412
17 Deferred tax liabilities "Liabilities 25 2 087 -
18 Provisions for obligations 16 2 051 941
19 Other financial liabilities 17 1 986 507
20 Other liabilities 18 12 952 727
21 Total liabilities 28,29 1 747 844 1 370 013
EQUITY
22 Capital 19 389 540 389 540
Add. 4 "
23 Retained earnings (accumulated deficit) on own 38 234 42 826
Capital
24 Reserve and other bank funds 20 32 652 10 813
Net assets belonging to shareholders Add. 4 "
25 on own 460 426 443 179
(Participants) of the bank Capital 29
Add. 4 "
26 Total equity and minority interests on own 460 426 443 179
Capital 29
27 Total liabilities 28,29 2 208 270 1 813 192
March 30, 2010
Chairman AO Lyhochas
Chief Accountant TS Tarasenko
Vik. Kolomiychenko NA
461-82-80
50
Appendix 2
Income Statement
JSC "Ukrainian Professional Bank
as at 31 December 2009.
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
1 Net interest income / (net interest 21 124 034 97 354
costs)
1.1 Interest income 21,28 321 711 259 395
1.2 Interest expense 21,28 (197 677) (162 041)
2 Commission income 22,28 19 219 20 169
3 Commission expenses 22,28 (3 848) (1 857)
4 Result from trading securities (779) 2 635
securities in trading portfolio
Gains less losses from financial
5 instruments carried at 171 (634)
fair value with recognition
through profit or loss
6 Gain on foreign currency trading 3 687 15 834
7 Gain on revaluation of foreign currency (1 371) 8 525
8 Provision for loans and 6, 7, 11 (44 928) (34 806)
other financial assets
9 Depreciation of securities held for 8 - -
sale
10 Gain on sale of securities in (10 590) -
held for sale
11 Provisions for obligations 16, 31 (1 111) (354)
12 Other operating income 23 2 236 1909
13 Administrative and other operating expenses 24 (63 090) (55148)
14 Profit / (loss) before taxation 25,28 23 630 53627
15 Income tax expense 25,28 (6 383) (10801)
16 Profit / (loss) after tax 26,28 17 247 42826
17 Net profit / (loss) 26,28 17 247 42826
18 Net profit / (loss) per ordinary 26 0,05 0,13
share
19 Adjusted net profit / (loss) 26 0,05 0,13
per ordinary share
March 30, 2010
Chairman AO Lyhochas
Chief Accountant TS Tarasenko
Vik. Kolomiychenko NA
461-82-80
51
Annex 3
Statement of Cash Flows
As of December 31, 2009
(Indirect method)
JSC "Ukrainian Professional Bank
(Thousand).
Line Item Note 2009 2008
1 2 3 4 5
I. Operating activities
1 Net income (loss) of current period 26,28 17 247 42 826
Adjustments to reconcile net
Profit / (loss) to the amount of receipts
of operations:
2 Amortization 10,24,28 6 968 5 041
3 Net increase (decrease) in provisions for 6, 7, 46 022 35 153
Asset 11, 12
4 Accrued income 4,5, 6, 7, 8, (28 237) (5 214)
11
5 Accrued expenses 13, 14, 15 2 398 2 753
6 Trading result 10 590 (2 001)
7 Current and deferred tax (799) (519)
8 Income (loss) on sale of investments 7 (2)
9 Net cash income / (loss) before change 54 196 78 037
operating assets and liabilities
Changes in operating assets and liabilities:
10 Net (increase) / decrease in other 5 183 642 (51 705)
financial assets that are recorded at
fair value recognized
through profit and loss
11 Net (increase) / decrease in other bank’s assets 6 (91 613) 76 009
12 Net (increase) / decrease in loans and 7 (119 933) (480 410)
client debts
13 Net (increase) / decrease in other 11 54 (115)
financial assets
14 Net (increase) / decrease in other assets 12 9 758 (6 545)
15 Net (increase) / decrease in other banks assets 13 367 165 6 298
16 Net (increase) / decrease in clients' accounts 14 (12 586) 150 908
17 Net (increase) / decrease in debt securities 15 5 497 (93 219)
securities issued by the Bank
18 Net (increase) / decrease in other 17,18 2 680 (681)
financial obligations
19 Net (increase) / decrease in provisions 16,17,18 12 134 1 019
commitments and payments and other obligations
20 Net cash received from 410 994 (320 404)
Operations / (used in
operating activities)
Cash flows from investing activities
21 Purchase of securities held for 8 (178 488) (7)
sale
52
22 Revenue from the sale of securities held (10 590) -
for sale
23 Purchase of fixed assets 10 (8 512) (14 256)
24 Revenue from sale of fixed assets (7) -
25 Buying investment property 9 (28 895) -
26 Purchase of intangible assets 10 - (20)
27 Net cash received from (226 492) (14 283)
investment / (used in
investing activities)
Cash flows from financing activities
28 Issuance of ordinary shares 19 - 200 000
29 Dividends paid and other payments 27 (1) (13 297)
30 Net cash received from (1) 186 703
financial performance / (used in
investing activities)
31 Net inflow (outflow) and 184 501 (147 984)
equivalents
32 Cash and cash equivalents at beginning of year 4 112 129 260 113
33 Cash and cash equivalents at end of year 4 296 630* 112 129
* In compliance with Bank Letter of 29.12.2009 № 12-111/1791-24239 year "Rose" for explanations of some of
financial statements of banks in Ukraine in 2009, the total amount r.33 'Report Cash Flow for 2009
(296 630 thousand.) Funds is not included obligatory bank reserves, the NBU (9752 thous.) Note 4 of "Money
Cash and cash equivalents (306 382 thousand).
March 30, 2010
Chairman A. Lyhochas
Chief Accountant T. Tarasenko
Vik. Paschenko OV
461-82-81
53
Annex 4
Equity report
JSC "Ukrainian Professional Bank
As of December 31, 2009
(Thousand).
Owned by shareholders of the parent
Bank
Line Name back Portion Total
Notes
and Retained- own
Article authorized all minority
other capital
partible
capital Funds
profit
Bank
(Note
1 2 3 4 20)
5 6 7 8 9
Balance at 1
1 189540 8334 15779 213653 - 213653
January 2008
Adjusted
2 Balance at 1 189540 8334 15779 213653 - 213653
January 2008
Add 1 "Balance"
Profit / (loss) Dod.2 "Report
3 - - 42826 42826 - 42826
per year financial
results ", 28
Total Add 1 "Balance"
4 Dod.2 "Report - - 42826 42826 - 42826
income / (loss) financial
recognized for the year results ", 28
5 Issue of shares 19 200000 - - 200000 - 200000
Distribution
6 profit to 20 - 2479 (2479) - - -
reserve and
other funds
Dividends per
7 which made 27 - - (13300) (13300) - (13300)
decisions
payments
Balance at end
December 31 Add 1
8 389540 10813 42826 443179 - 443179
2008
"Balance", 29
(Balance of 1
January 2009)
Adjusted
balance Add 1
9 389540 10813 42826 443179 - 443179
early 2009 "Balance", 29
year
Securities
10 held for - - - - - -
Sale:
Result
10.1 through their 20 - 1365 - 1365 - 1365
fair
value
Sale or
10.2 20 - (1365) - (1365) - (1365)
loss of
54
reduction
usefulness
Fixed and
11. intangible 20 - (87) 87 - - -
Assets:
Result
11.1 - - - - - -
Revaluation
Realized
11.2 result 20 - (87) 87 - - -
Revaluation
Add 1 "Balance"
Profit / Loss Dod.2 "Report
12 - - 17247 17247 - 17247
per year financial
results ", 28
Add 1 "Balance"
Total
Dod.2 "Report
13 income / (loss) financial
- - 17247 17247 - 17247
recognized for the year results ", 28
Distribution of
14 profit to 20 - 21926 (21926) - - -
reserve and
other funds
Balance at end
Add 1
15 December 31 389540 32652 38234 460426 - 460426
"Balance", 29
2009
Contributions to unregistered capital is 9500.0 thousand.
In 5040 stock account: replace the revenues earned and the amount of 25 095 thousand. Accrued and unpaid
costs amounting to 14 171 thousand.
March 30, 2010
Chairman A. Lyhochas
Chief Accountant T. Tarasenko
461-82-85
55
Note 1. Accounting policies
Note 1.1 "main activity"
Legislation of Ukraine, which govern JSC UPB "during
their functions
When performing its functions, the Bank is guided by the norms of current legislation
Ukraine, which regulate banking activities, including regulations of the Supreme
Council of Ukraine, the Cabinet and ministries, the National Bank of Ukraine, SEC
and other legislative acts of Ukraine and effective in Ukraine.
Structural units and units that form part of the bank and ensure its
activity
Banking activity Open share Society "Ukrainian
Professional Bank "conducted by the staff offices (in Kyiv), which
provides functioning guiding bodies control and service
units to provide support services to clients, information, technical and
organizational support for employees geographically separated branches
open in all regions of Ukraine.
Activities provide bank units (service departments, management,
departments) and the collegial body under the Bank's organizational structure and functions
specified by the relevant internal regulations.
Legal structure JSC "UPB" approved joint decision
Supervisory Board and the Board.
The organizational structure of a bank is a separate scheme.
56
Nature of operations and principal activities of the bank
Activity of an Open Joint Stock Company "Ukrainian Professional Bank
purely legal nature - Bank adheres to legislative requirements,
regulating banking operations, operating solely on law when resolving disputes.
Bank operations are universal - OJSC "UPB" serves
banks with domestic and foreign capital, public institutions of Ukraine,
enterprises of all forms of ownership that operate in different areas
Economics and determined, both large and small and medium-sized, natural persons -
Ukraine, foreign citizens who belong to different social groups.
Open Joint Stock Company "Ukrainian Professional Bank" performs
banking transactions in compliance with guidelines for their character nyzkoryzykovanoho -
Bank carefully and cautiously take risks, applying methods of differentiated
avoidance or reduction.
The Bank provides services to its customers virtually throughout Ukraine,
carried out services through its branch network and client systems through-
bank, which allows to realize high-quality banking products to customers
remote of offices Bank. This way activity JSC "UPB" is
national character.
Focus on goals defined by the Strategy Development Bank
execution of tactical plans, banking network, the dynamic growth of major
performance, increase customer base, revenue that
determine the profitability above the average in the banking system, increasing
ranking positions in the bank - forms the strategic nature of the JSC "UPB"
Other information:
Bank runs smoothly, adheres to all banking regulations, is fully
reserves formed in accordance with existing regulations, fulfilling its obligations to customers,
State and local budgets and other funds to which are.
Note 1.2. "Fundamentals of accounting policies and reporting"
Annual Financial Report of OAO "UPB" compiled according to the instructions on
compilation and publication of financial statements of banks of Ukraine approved
Resolution of the National Bank of Ukraine of 12.27.2007, № 480, as amended and
additions and components accounting policies of the Bank in 2009. The notes to the annual
reporting bank's accounting rules, according to the
regulations of the National Bank of Ukraine, taking into account the rules
Accounting and reporting by international standards,
including: IAS 1 Presentation of Financial Statements, IFRS 7 Financial Instruments:
Disclosures, IAS 39 Financial Instruments: Recognition and Measurement, IAS 7 Statement of
money, "IAS 14" Segment Reporting, IAS 21 The Effects of Changes in Foreign Exchange
courses.
Bank's accounting policies based on the basic principles of international
standards, national regulations (standards) of accounting.
The basic principles that guide the Bank in determining their accounting
policy are:
full coverage - all banking transactions shall be registered in the accounts
accounting without any exceptions. Financial statements should include
all the information about actual and potential consequences of the Bank that could
influence the decisions made by it;
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Timeliness - transactions are accounted for on the day of implementation (the day
contract), the day of rights (assets) or liabilities
(Liabilities), regardless of the date of cash flows under the contract. In the case of
difference between the date of transaction and settlement date, such transactions are on
memorandum accounts of the Bank;
prevalence of substance over form - operations accounted for and disclosed in
statements in accordance with their substance and economic content, not only for their
legal form;
autonomy - assets and liabilities of the Bank shall be separated from the assets and
obligations of owners of the Bank and other banks (companies) in connection with this
personal property and liabilities of owners do not appear in the financial
Bank statements. Assets - resources resulting from past events
the use of which is expected to lead to economic benefits in a
future. Liabilities - debts arising from past events and
thereafter in the future, is expected to lead to a reduction of resources
embodying economic benefits;
caution - the use of accounting methods of valuation, according to
which assets and / or income not zavyschuvatymutsya and liabilities and / or costs - not
zanyzhuvatymutsya;
continuity - evaluation of bank assets is based on the assumption that
continue its activities in the boundless future. If the Bank
plans to scale down their activities, it should appear in the financial
reports;
accrual and matching of revenues and expenditures - to determine financial
result of the reporting period to reporting period compared to income from
expenditures that were made for these payments. Revenues and expenses
reflected in the accounting and financial reporting at the time of
regardless of the date of receipt or payment of money;
continuity - constant (each year) use the Bank of the accounting
policy. Change in accounting methods is possible only in cases provided
international standards and national provisions (Standards)
accounting, and requires additional substantiation and disclosure in
financial statements;
historical (actual) cost - assets and liabilities are accounted for priority
cost of acquisition or occurrence. Assets and liabilities in foreign currency
excluding non-monetary items are re-evaluated in case of change of
exchange rate at the reporting date.
The Bank maintains its accounting records and prepare financial statements in the currency of Ukraine.
Transactions in foreign currencies appear in the accounting and financial
reporting currency of Ukraine in transferring it to the official exchange rate
established by the National Bank of Ukraine on the date of the transaction or assembly
statements. Annual financial statements are prepared in thousands of USD.
Assets and liabilities are carried at historical (original) value, except
Securities that are in the trade portfolio, revalued at the date
balance and recorded on balance sheet at fair (market) value.
Assets and liabilities are measured and are accounted for by the Bank so
not to transfer the existing financial risks that threaten the financial
situation of the Bank for the next period.
In keeping with the original (historical) cost of assets recorded at the amount
actually paid money for them, and liabilities - the amount of mobilized funds in exchange
the obligation.
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When accounting for the fair (market) value of assets are recognized after this amount
funds that would have to pay for the acquisition of such assets in the current time, and
commitment - after this amount of money that would solicited for the calculation of
current time.
Bringing the value of assets in line with market carried out by them
revaluation.
Provided (received), credits available (involved) deposits (deposits) are initially
evaluated and shown in the accounting for the cost (the amount actually
given (received) funds, including fees and other costs directly
associated with these operations), respectively, as assets and liabilities and are not subject
netting.
At the balance sheet loans, deposits (deposits) are measured at amortized
cost using the effective interest rate during the amortization
discount (premium) and interest accrual excluding assets and liabilities "Transactions by
that the effective rate does not apply the principle of materiality.
Display in accounting assessed received (paid)
income and expenditure arrears accrued income and
writing off bad to accrued income from special reserves
is based on the Accounting Rules for Income and expenditure banks in Ukraine
approved by NBU Board 18.06.03r. Number 255 as amended and
additions.
Bank Recognized income and expenses are recorded in accounting
using the accrual basis of accounting and compliance at least once a month for
each transaction (contract) separately.
As of November 1, 2009 an inventory of assets, liabilities,
reserves accounted including the memorandum accounts and the audit of cash and valuables,
which were in storage bank.
Main differences between the accounting policies of the Bank due to differences between
existing legislative requirements and International Financial Reporting Standards
("IFRS") including IAS 39 Financial Instruments: Recognition and Measurement in part
initial recognition at fair value, fair value method
assets, the recognition of impairment of financial assets (the difference in techniques
calculation and evaluation assets for impairment).
Note 1.3. Consolidated Financial Statements
The Bank has consolidated group members, not the parent bank and not
subsidiaries and associated companies.
Note 1.4 Initial recognition of financial instruments "
Initial recognition of the settlement date
Purchase or sale of financial assets and liabilities are recognized on the balance of
settlement date ie the date when the asset or liability will be transferred to the Bank
(Recognition tool).
Initial recognition of financial assets
Financial assets classified as loans and receivables
debt, financial assets at fair value through
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as profit or loss; investments held to maturity or financial assets available
for sale.
On initial recognition of financial assets (if the investment does not
classified as financial assets at fair value
through the profit or loss) are measured at fair value
net of costs directly attributable transaction, namely:
securities in the trading portfolio are initially recognized at
fair value. The cost of the acquisition costs are recognized on accounts
the initial recognition of such securities;
Securities held for sale are initially recognized at fair
value to which are added to the acquisition of such securities.
The cost of acquisition of debt securities held for sale
appear on the account from the account of discount (premium) on the date of acquisition;
purchased securities in the portfolio to maturity are initially recognized at
fair value, to which are added to the acquisition of such securities
securities. The cost of acquisition of debt securities held for sale
appear on the account from the account of discount (premium) on the date of acquisition;
Committed investments in associates and subsidiaries are initially recognized
at cost. Transaction costs associated with acquiring investments, increase the amount
such investment at the date of its acquisition;
Loans placed deposits (deposits) from the initial recognition
measured at fair value including transaction costs. Costs
transaction directly related to the recognition of financial instruments, bank
includes the amount of discount (premium) for that financial instrument.
Initial recognition of financial liabilities
Financial liabilities include amounts owed to the Bank, credit
institutions, customers and debt securities. Financial liabilities are initially
recognized at fair value of the assets, net of expenses
directly associated with the transaction.
Note 1.5. "Trading securities"
Method of assessment - securities trading portfolio are initially measured at
fair value. The cost of the acquisition costs are recognized on accounts
the initial recognition of such securities.
During the reporting year in the trade portfolio accounted bonds, and
investment certificates issued by entities - entities.
These securities are accounted for accounts 3 class according to plan
Accounts of banks of Ukraine at fair value.
Securities in trading portfolio pereotsinyuvalys when you change their fair
value on the date value and end of each month along with interest.
The method of assessment is the market value of securities quoted on the stock market.
Revaluation account balance shown by 6203 in the amount of difference between
fair (market) value of the security and its book value. Result
from the sale of securities as shown on the balance account 6203.
For bonds in the trading portfolio interest income recognized under the
prescribed interest rate on these securities, and carrying them
charge for each date of revaluation. The result shown by calculating
account balance in 3018 correspondence from 6057.
Results from the trade show in line 4 income statement.
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Interest accrued on securities in the trading portfolio during the possession
they appear in line 1.1 the income statement.
Note 6.1 "Loans to customers"
Provided (received), credits available (involved) deposits (deposits) are initially
evaluated and shown in the accounting for the cost (the amount actually
given (received) funds, including fees and other costs directly
associated with these operations) respectively as assets and liabilities and are not subject
netting.
At the balance sheet loans, deposits (deposits) are measured at amortized
cost using the effective interest rate during the amortization
discount (premium) and interest accrual excluding assets and liabilities "Transactions by
that the effective rate does not apply the principle of materiality.
For the purpose of disclosure in financial statements information on credit operations
Relative bank lenders - companies to small companies, medium or large
companies based on gross income from sales for the year by
form the basis of the number 2 "Income Statement" for 12 months or 9 months.
Determination of annual gross income under the form number 2 for 9 months, is
by dividing the total income for that period by 9 and multiplying the share received by 12.
Small companies (regardless of form of ownership) -
borrowers, in which gross income from sales of products (services) for the year
not more than forty million.
Large companies are recognized enterprise - borrowers, which amount
gross income from sales of products (services) for the year exceeds four hundred
million.
Other companies - lenders recognized averages.
The principal amount of debt on credit transactions recorded on the relevant
balance accounts, depending on classification criteria such credits:
purpose loans (loans to borrowers to meet the needs
in funds for business financing, overdraft credits repo transactions,
BD, loans for current needs of individuals, credits for investment
activities, financial leasing, loans granted for other purposes);
type of partners (banks, businesses, individuals, government
and local authorities);
use the term credit facilities: (short [not exceeding one year -
365 days or 366 if leap year] and long [more than one year - 365 days
or 366 if leap year);
state loan debt: term and overdue.
Depending on the criteria described above accounting of loans is
on various balance sheet accounts.
After enactment of the loan agreement, the day of the Bank
Commitment lending bank accounts provided by off-balance sheet commitments
accounts of the respective group 910 "Obligations of credit provided by Bank, 912
"The obligation of loans granted to customers."
If the trade date (the day of the Bank credit commitments) loan
provided in full, the credit commitments under off balance sheet accounts
not shown.
On the day of the transfer of credit to the borrower (loan), on the same
amount decreases credit commitments, which accounted for off-balance
accounts.
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In case of termination of the contract, in whole or part of its corresponding
deducted from the amount of liabilities off-balance sheet accounts.
Guarantees, sureties, received credit as security operations originally
counted for in the memorandum accounts referred to in 9010,9030,9031,9015,9036
contract amount of loan (credit line).
Pledge, adopted in software valued at market value and
recorded in memorandum accounts 9500 (received pledges), 9503 (for mortgage
warrant), 9520 (mortgage of land), 9521 (mortgage of immovable
property residential purpose), 9523 (pledge other real estate) by the amount
specified in the contract of pledge. Responsible experts of the Bank quarterly and
by extension, carried out inspection of the mortgaged property and, if necessary
revised its cost.
If impairment of the loan or on deposit (deposit)
Bank forms (increase) the reserve for possible credit losses
operations (hereafter - Provision for credit risks) in accordance with the requirements of the
the formation and use of reserves for possible losses
credit operations of banks, approved by the Bank from 06.07.2000
Number 279 as amended.
To calculate the amount of provision for credit risks necessary to the formation, by
principal debt as of the first day of each month by the Bank
assessment of credit risk for all credit transactions.
Provisions for credit risks on principal credit operations are divided
for provisions and non-debt. Provisions for non-standard
receivable are derived from credit operations classified as "under
control, "" substandard, "" doubtful "and" hopeless. " Separately considered
reserves, formed under balance sheet credit transactions (which are included on the balance sheet
accounts) and off-balance sheet credit transactions (guarantees, acceptance and Aval
Irrevocable credit commitments, which are provided to banks and customers).
Provisions for standard outstanding balance credit transactions
recorded under account 1590 "Provisions for liabilities of other banks for credit
Operations ", 1592" Provisions on funds placed on correspondent accounts in
other banks "and 2400" Provisions for loans granted to customers and are estimated to
individual basis.
In the case of late repayment by the borrower for the amount
principal and no decision on the extension of the loan, ie
its prolongation, delayed amount is transferred to the accounts of bad loans
working day following the expiration of the loan (interest, tranche)
caused by the credit agreement.
In the case of an agreement with the borrower to extend the duration
loan agreement, which is evidence of continuing relationship with a reliable and
solvent borrower, such loans (principal debt) accounted
the relevant accounts to account for short-or long-term debt
Plan accounts, depending on the term determined by the date of extension of contract to
date of maturity. Given the feature overnight loans provided by available
one working day and traded in the interbank market, if you change the start date
maturity (extension) payable on such loans is recorded at
respective accounts to account for short-or long-term loans depending
the term, which is determined from the date of the contract extension before the date of maturity.
If the indebtedness secured by collateral, and the Bank imposes penalties on
object collateral in accordance with the agreement of pledge, pledge implemented in accordance with applicable
legislation of Ukraine. After receiving funds from the sale of collateral, the Bank charges on its
balance count. Funds from Foreclosure, Bank shall credit the
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by 2909 "Another payable on transactions of bank customers with
subsequent transfer to a loan repayment (interest, principal
debt, fines, etc.) and amount excess funds the sales
collateral over the amount of outstanding loans, transfers on current account
pledgor.
If the indebtedness provided a guarantee or surety, after
receiving full or partial amounts of the guarantee (guarantee), Bank charges
appropriate amount of balance count. Funds from the guarantor (guarantor) for
provided credit is applied in repayment the borrower within
amount guaranteed.
In case of insufficient funds from sales of collateral (collateral, guarantees, etc.) to
loan repayment and if the legal actions of the Bank and all other
procedures (including the enforcement of the borrower's other assets, etc.)
that made for repayment in accordance with existing laws
Ukraine would not lead to fully cover debt, the balance of outstanding
principal amount of debt written off against the allowance for possible losses
on credit operations under the Board's decision.
In the absence of the borrower's sources to meet their obligations and
signs of bad debt entry under paragraph 1 of Article 1.25
Ukraine "On taxation of profits, the Bank Credit Committee considers
and, if the decision on recognition of bad debts on loans, transfers
The Board materials for making decisions to write off bad assets
Bank. Also, the Bank Credit Committee prepares proposals for the Board of Directors of the Bank
possibility of covering these debts through the provision created to compensate
possible losses on credit transactions.
The final decision on the cancellation of the Bank's balance bad credit
debt due to special provisions adopted exclusively by the Management Board.
Writing off bad credit debt is based on the protocol
(Or an extract from the minutes) meeting of the Board. Written-off through reserves
hopeless outstanding principal debt recorded on the memorandum accounts
Group 961 "written-off debt at a loss on assets" to observe appearance
possibility of recovery in bankruptcy and liquidation of the debtor to the time of receipt
funds for compensation before the expiration of the limitation period that determined
current legislation of Ukraine or liquidation (canceling the registration of
entity) entity - the debtor.
The return of previously written off due to bad debt reserve
reduces the cost of the relevant provisions in the Income Statement.
Interest income (expense) credit transactions with banks charged
monthly, usually no later than the last working day of the reporting month. At
calculation of interest is taken into account day loan and included day
repayment pursuant to the contract.
Interest income by credit operations wit legal persons
h
charged at least once a month, namely: charge twice a
month - 25 and 30 (31) of each month (except overdraft loans on settlements
current accounts). In calculating the interest is taken into account day loan and no
considered the day of repayment under the terms of the contract. If 25 or 30 (31)
numbers fall on weekends, the charge is a previous working
day, while in the billing period, the dates included.
Accrual of income on loans overdraft entities in the calculations
current accounts are usually in the penultimate banking day
month, while in the billing period, this is not included, and all
63
calendar days, not included in the current billing period are included in
next billing period.
Interest income on credit operations with individuals charged
at least once a month. Charges once a month, namely: 30
(31) of each month (except overdraft loans under the settlement of payment
cards). In calculating the interest is taken into account day loan and no
considered the day of repayment under the terms of the contract. If 30 (31) number
is on weekends, the charge made last working day of
in this billing period, the dates included.
Interest income on credit operations are shown in the line of 1.1.Zvitu
financial results.
Accrual of income on loans overdraft individuals in calculations
Cards are usually in the penultimate banking day
month, while in the billing period, this is not included, and all
calendar days, not included in the current billing period are included in
next billing period.
If the accrued income, which accounted for the relevant
Account Classes 1, 2, 3, recognized hopeless, the Bank writes off her by the prevailing
reserves under the Board's decision.
When writing off bad debts to get assessed
income generated by the posting of reserves at the same time is
debt off balance sheet accounts of group 960 "past due revenues
(9600 A "write-off due to special provisions for accrued
income from transactions with banks, "9601 A" write-off due to special reserves
accrued income on customer transactions ") under which it
considered the time of receipt of compensation or before the expiry of limitation
ago.
In 2009, the cancellation was made due to the prevailing provisions
bad credit debt amounting to 1751.3 thous., bad debt
assessed, but replace the revenues amounting to 130.5 thous. Return
Borrowers previously written off due to bad created reserves
of loans reported in the corner is not the case.
The report "Balance" and Note 7, "Loans to customers' credit
debt is recorded at cost, adjusted for appropriate special
reserves.
Issued Financial guarantees and letters of credit securing transactions
guarantee payment as compensation for loss that occurs in the case of debtor insolvency
meet its financial obligations under the original or modified terms of debt
tool. Such issued financial guarantees and letters of credit are recognized at fair
value.
Provisions for standard and custom off-balance sheet receivable
credit transactions are recorded on separate analytical accounts of
Account 3690 "Provisions for liabilities issued.
Note 1.7. "Securities held for trading"
Method of assessment - purchased securities in the portfolio for sale are initially measured
and displayed in the accounting at fair value, which added
cost of acquisition of such securities.
After initial accounting for securities in the portfolio for sale
assessed:
at fair value;
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at cost subject to a write-down due to decreased
value - shares and other securities with non-fixed income, fair value
which can not be measured reliably;
at least two variables: the carrying amount and fair
value less transaction costs related to selling - investments
associates and subsidiaries, which translated into portfolio for sale and held for
sale within 12 months;
at least two variables: the cost of acquisition (cost) and
fair value less transaction costs associated with the sale, -
Investments in associates and subsidiaries that acquired and held exclusively for
sale within 12 months.
Securities accounted in the portfolio for sale are reviewed to reduce
utility. Impairment is recognized at each balance sheet date if there is objective
evidence of one or more events that have an impact on expected future cash flows by
securities.
At the end of the year in the bank portfolio shares and accounted
bonds issued by entities - entities. These securities
accounted for accounts 3 class according to the Chart of Accounts
Ukraine bank account at cost under the accounting policies of the bank, which
provided that the shares and other non-fixed income securities for which fair value
still can not reliably are carried at cost in the bank's portfolio
sale with the appropriate provisioning. Provision for securities in bank portfolio is
formed on the basis that the investments in shares of stock exchanges, depositories, payment systems,
and credit bureaus and investments in bonds, which are recognized risk-free, non
redundancy.
Gain on sale of securities in bank portfolio display
account 6393, "Gain on sale of securities held for trading.
During the year the bank dividends on the securities is not received.
Note 1.8. "Securities held to maturity"
Operations were not conducted.
Note 1.9. "Investment Property"
To account for investment property Bank uses as provided PBU
32, which was approved by the Ministry of Finance of Ukraine № 779 from July 2, 2007
Regulations, and National Bank of Ukraine the Accounting major
and intangible assets of banks of Ukraine № 480 of 20 December 2005.
According to the 1932 PBU investment property - is owned or leased under
finance lease land, buildings, structures, which are located on land
held in order to receive rental payments and / or increases in equity.
Investment real estate asset is recognized if there is a likelihood that
The Bank will in future use of its economic benefits in the form of rent
payments and / or increases in equity, and its initial cost may be
reliably measured.
Accounti irreversible assets that classified Bank as Investment
ng
property, by a score of 4410.
Measurement unit investment property is land or building or part of the building,
or land and buildings that are available to the Bank as owner or as
lessee under a finance lease agreement (lease) in order to
lease payments, income from capital growth or this or that, and not to provide
services or administrative purposes.
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The same property can be divided into structurally
separate parts that are used for different purposes: one part - for
income from rent or capital increase, the other - for use in
process of the bank or for administrative purposes.
In accounting of such property are shown
separately if they can be sold separately. If these parts can not be sold
separately, this object is recognized investment property, provided that only
small part of the facility held for use in the process of the bank or
for administrative purposes.
During the initial recognition, investment property and reflects the Bank assesses
in its accounting for cost, which includes the purchase price of the
property and all costs directly related to its acquisition.
The costs of ongoing maintenance, repair and maintenance facility investment
Real estate costs are recognized by the Bank during their implementation.
Capital investments for the reconstruction of an investment property, which
long term used as Investment real estate
increase its value. Such capital investment reflects the Bank accounted for some
analytical accounts of 4410.
After initial recognition, Real estate investment continued its assessment
Bank may make for one of the following methods:
a) at fair value with changes in fair value recognized in profit or
loss, amortization and impairment are not recognized;
b) at cost (cost), taking into account accumulated depreciation and
impairment losses.
The Bank evaluates investment property for each subsequent upon
initial recognition of the balance sheet date.
If the Bank elected valuation, investment property at fair
value, he must consistently apply this method to the time of his retirement or
reclassification.
Transfer of property to the category of investment property and
category of investment property to the other bank holds only if changes in the way
its functionality.
Bank ceases to recognize the object in the balance of investment property during his
departure from the sale or transfer of financial leasing (lease) or if
no longer expected to receive any economic benefits from its use.
Financial result on disposal of investment property of the object determines the Bank
as the difference between revenues from disposal facility and its carrying value and
recognize them in the reporting period in which the disposal took place or liquidation.
At the end of 2009 the balance sheet is one object
investment property (commercial and shopping complex) to: Town
Dnipropetrovsk. Heroes of Stalingrad, will be. 31d, the total area of 4080.2 sq.m.
First of all ownership in the Bank has received due to meet his requirements on
credit agreement № 708 of 28.09.2007 at the expense of the transferred property to mortgage
Ltd. SITI'KOM "for-sale. Subsequently, the Bank for this property
made by the landlord, and in accordance with the lease agreement for non-residential premises number 5692 -
Jur of 12.05.2009, the object passed in using temporary payable Ltd.
"Personal electronics. So the translation of the object to the investment
property from the Bank was followed two obligatory conditions, namely:
facility meets all the criteria for recognition of investment property p.4-6
PBO 32;
until such a transfer object as stocks oblikovuvavsya Bank (
retained property for sale).
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Evaluation of the investment property on account of 4410 made by the Bank
fair value method, for which the initial determination as of 12 May 2009
year was held independent rating building professional expert (PP
"Manuscript"). The Bank evaluates investment property for each subsequent upon
initial recognition of the balance sheet date.
Note 1.10 "Fixed"
Method evaluation – Main Tools accounted by original value
(Cost) to balance accounts from 4400 and 4500 less accumulated
depreciation and accumulated impairment losses. Fixed assets -
completed device with all the gadgets and accessories or a
structurally isolated object that is designed to perform certain
independent functions.
Cost of fixed assets increases the amount of costs associated with
facility improvement (modernization, modification, completion, additional equipment, reconstruction
etc.), resulting in increased future economic benefits originally expected from
use of the object. Expenditures for capital and current repairs of fixed assets
included in the cost reporting period and no impact on their residual value.
Method of depreciation - straight line depreciation is
method.
Depreciation rate depends on the useful life of fixed assets.
The range of the useful life of fixed assets ranges from 3 to 20 years.
The residual value is zero.
Depreciation in 2009 and is not viewed:
- Buildings - 5-10%;
- Machinery and equipment - 20%;
- Tools, tools, equipment (furniture) - 20-25%;
- Other fixed assets - 25%;
- Low value non-current assets - 100%;
- Other non-tangible assets - 20%.
Useful life of fixed assets has not been revised.
Revaluation of fixed assets - not carried out in the application in
accounting method the original cost.
Depreciation of fixed assets is determined by desuetude, the backwardness of
world-class performance of basic technical and technological characteristics.
Note 1.11 "Intangible Assets"
Method of assessment - intangible assets are carried at cost
(Cost) on account of the balance of 4300 less accumulated depreciation and
accumulated impairment losses.
Cost of intangible assets increases the amount of costs
to improve and increase their capacity and service life, which will
increase originally expected future economic benefits.
Expenses made to maintain goodwill fit
to use state included in the cost reporting period.
Method of depreciation - straight line depreciation is
method.
Depreciation rate depends on the duration of operation. Working life
intangible assets not more than 10 years.
67
Depreciation in 2009 and is not viewed:
- Right to the signs - 10%;
- Software - 10-25%;
- Other intangible assets - 20-25%.
The residual value of intangible assets is zero.
Revaluation of intangible assets - no was carried in the application in
accounting method the original cost.
Useful life - not revised.
Note 1.12. "Operational leasing (rental)"
As at 31 December 2009 on the balance sheet of the property is located in
a commercially-commercial complex at: city Dnipropetrovsk.
Heroes of Stalingrad, will be. 31d, the total area of 4080.2 sq.m. Ownership
Bank received due satisfaction of their claims on the credit agreement № 708 of
09/28/2007 at the expense of the mortgage assets transferred Ltd. SITI'KOM "to
subsequent sale. Subsequently, the Bank for this property was made by the landlord, and under
operating lease agreement with non-residential premises for the number 5692 from 05.12.2009 Jur
was transferred to a temporary object using paid Ltd. Personal Electronics.
Note 1.13. "Financial leasing (leasing)"
Bank does not provide or receive assets in financial leasing (lease).
Note 1.14. "Long term assets held for sale and assets of the group
disposal "
Bank does not keep the balance of long-term assets for sale, and
Asset disposal.
Note 1.15. "Discontinued operation"
In 2009, the Bank's governing bodies are not approved and not
declared the termination of plans.
Note 1.16. "Derivatives"
In 2009, the Bank has not carried out operations with derivative financial
instruments.
Note 1.17. "Income tax"
Tax rate for fiscal year did not change.
Differences between costs (income) tax on income and product
your income tax rate on income related to:
- advances for services referring to the income or expense in tax accounting and
display them in financial accounting;
- different orders display the result from trading in securities in
financial and tax accounting;
- different order of recognition of revenue from interest on credit operations
financial and tax accounting;
68
- different order of the construction costs and major repairs
assets in the financial and tax accounting;
- different orders of depreciation of fixed assets in the financial and
tax accounting;
- not displaying in a tax accounting costs for passenger
automobiles, hospitality and more.
Total temporary differences are deductible for 2009 is 29 032
thous.
Temporary differences related to financial investments in subsidiaries and
Associates, the Bank has not.
Amount of expenses (income) income tax-related income (loss)
from activities that halted the Bank does not exist.
Note 1.18. "Own shares redeemed from shareholders"
In 2009, the Bank has committed repurchase its own shares from shareholders of the Bank.
Note 1.19. "Income and expenditure"
To account for the accrual of revenues and expenses applicable Bank Policies
Accounting income and expenses of banks of Ukraine, approved by the
NBU Board 18.06.03r. Number 255, as amended.
Revenues and expenses are recorded in the accounting for the relevant accounts in June
and 7 classes.
As a result of operating activities in the bank having such income and expenses:
Interest income and expenses;
fee income and expenses;
gains (losses) on trading;
Dividend income;
costs of special reserves of the Bank;
income from the return of assets previously written off;
Other operating income and expenses;
general administrative expenses;
income tax.
Bank Recognized income and expenses are recorded in accounting
using the accrual basis of accounting and compliance at least once a month for
each transaction (contract) separately.
Interest income and expenses are recorded in accounting
using the effective interest rate and defined as the product of the amortized
cost effective rate of interest.
Accrual of interest is a nominal rate, based on
nominal amount of financial instrument.
Recognition of income (expenses) in the form of interest is the effective
rate, based on the carrying value of financial instruments.
The difference between interest accrued and recognized as interest income
amortization of discount / premium.
To calculate the effective interest rate determined by the cash flows
considering all contractual terms of the financial instrument, including cover
all commissions and other paid or received between parties to the amounts that are an integral part
income (expenses), financial instrument. If it is impossible to estimate flows
69
cash or expected duration of a financial instrument shall be used
cash flows provided the relevant contract during the term of
contract. Credit line, the construction schedule of cash flows takes into account that
first stream (of money) is the day of signing the loan agreement
last flow (principal repayments) - the last day of the contract, ie
notional defined effective rate for income distribution.
Due to the fact that for multicurrency credit lines may not make
construction schedule conditional cash flows, determining the effective rate is
and by the presence of the original discount or premium amortization is
by the direct method and interest income are recognized in the amount of their actual accrual.
Amortization of discount / premium - a process to transfer the original
discount / premium accounts for the financial result.
Amortization of discount (premium) is not less than once a month
reflection on the relevant bills of interest income (expenses).
Amortization of discount or premium is charged simultaneously with the assessment
interest, while we use the same method of determining the number of days and that
Interest at a nominal rate.
In case of partial prepayment of a financial instrument is the amount
unamortised discount / premium closed down, that is full
amortization amounts remaining discount or premium.
Commission for granted (received) services with the objective evaluation and foundation
account the associated financial instrument divided into:
a) The commission is an integral part of income (expenses), financial instrument. These
commissions are recognized as part of the original value of financial instruments and influence
determine the amounts of discount and premium for this financial instrument. These include
Commission:
Commission for initiating the loan to be received (paid) associated with the Bank and
establishment or acquisition of a financial instrument that is not accounted for in
trading portfolio through the recognition of revaluation gains / losses;
Commission received (paid) by the Bank for credit commitments
(Backup line of credit) during the initiation or acquisition loan;
Commission received (paid) by the Bank to issue debentures, which
at amortized cost.
Commission for initiating the loan to be received (paid) associated with the Bank and
establishment or acquisition of a financial instrument that is not accounted for in the trade
portfolio through the recognition of revaluation gains / losses include:
Commission for assessing the borrower's financial condition;
appraisal fee guarantees, pledges;
Commission for the negotiation of the instrument;
Commission for the preparation, processing documents and complete the operation and so on.
Commissio that obtained (Paid) Bank for commitment wit Lending
n h
(Backup line of credit) during the initiation or acquisition loan shall be considered
integral part of income (expenses), financial instrument, if there is a likelihood
that the loan agreement is concluded. If the term given credit commitments
expires without the loan, then at the end of the term commitment Commission recognized
commission income (expense).
If a financial instrument carried at fair value with recognition
changes in fair value through profit and loss, the Commission received (paid) by the Bank
commission recognized income (expense) from the initial recognition of such
financial instrument;
b) the commission received (paid) during a service recognized
income (expenses). These include:
70
Commission Cash service;
Commission for credit debt;
commission for reservation of credit lines that are calculated on a time proportion
basis over the term of commitment;
fees for investment management, etc.;
c) the commission received (paid) after performing certain actions are recognized as
income (expense) after completing a transaction. These include commissions for distribution
shares (shares) customers, underwriting the operations of underwriting for
operations on the currency market and precious metals for clients syndication
loan, asset servicing, etc..
In calculating interest on loans granted and received is taken into account
first and last day is not considered the use of credit under the terms of the contract.
Interest on bank deposit (deposit) starts from the day
after receipt of the depositor of money or precious metals and finishes
on the day preceding the return of the money or bullion depositors
or cancellation of the deposit (deposit) account of the depositor pursuant to the requirements of the Regulations
on the procedure for banks of Ukraine (deposit) transactions with legal and
individuals approved by the National Bank of Ukraine
from 03.12.2003, the number 516 as amended.
If income (expense) received (paid) on the balance sheet date, the bank does not reflect
of the bills accrued income and expenses.
If the revenue service could not be estimated reliably, it
recognized and reflected in accounting in the amount of the expenses that
are recoverable.
If the date of accrual is impossible to determine income (expense) for the last 2 - 3
days of the month, the following income (expense) recognized the following month.
In addition, the Bank, taking into account the principle of materiality, provides corrective postings
the provisions of the formation correction entries undertaken
banks of Ukraine, approved by the National Bank of Ukraine
09.10.2001 № 427 as amended.
Acknowledged and reflected on the accounts of 6 class income is not adjusted for size
the related bad debts for unpaid accrued
income. The amount of such debt expense recognized by the Bank of
provision for accrued income as required by regulations of the National
Bank of Ukraine.
For coupon securities are recorded separately accrued interest.
Accrual of interest is dependent on the conditions of securities, but not
at least once a month during the period from the date of purchase of securities before the date
its sale or redemption. When calculating interest on coupon securities
used this method: the amount of accrued interest is defined as the product
Interest calculated on one security, and the number of securities in the package.
Amortization of discount or premium is charged simultaneously with the assessment
interest.
For debt securities accounted for separately discount or premium in case of their
availability. Discount or premium on debt securities in their portfolios for sale and
amortized to maturity during the period from date of purchase to the date of repayment
effective interest method. Amortization of discount increases interest
income, and depreciation premium reduces interest income on securities.
Amortization of discount (premium) is not made for debt securities, if
quantity discount (premium) is not significant, ie less than 1% is equal to 1%
Par. In this case the entire amount of discount (premium) increases (decreases) interest
proceeds from the initial recognition of a security.
71
Income and Expenses for leasing transactions (lease) of fixed assets, and
costs of depreciation of fixed assets and intangible assets
recognized and displayed in accordance with the Regulations of the accounting major
and intangible assets of banks in Ukraine, approved
National Bank of Ukraine of 20.12.2005 № 480 as amended.
Revenues and expenses of the bank over the past years, arising after the approval of the annual
report relating to income and unforeseen expenses.
These revenues, which belong to future periods are recorded as income
future periods. The expenses and fees that belong to future periods,
accounted for as deferred expenses.
Terms of calculation and payment of income and expenditure (accrual date, term of payment of
specified period, method of determining relative number of days during the calculation, etc.)
and penalties for violation of obligations defined by the contract debtor
between the Bank and the counterparty in accordance with the legislation of Ukraine and regulations
documents of the National Bank of Ukraine.
The settlement period for the accrual of interest income (expenses) determined
agreement in accordance with laws of Ukraine.
For the calculation of interest income and expenses applicable method
number of days "fact / fact" which implies that is used to calculate
The actual number of days in the month and year.
Exceptions to the above is the interbank loans and deposits, and
balances on correspondent accounts in foreign currency 1 the procedures for calculating, on which interest
income and expenses accrued by the method of "fakt/360.
Note 1.20 Foreign currency
Assets and liabilities in foreign currencies are reflected in the annual
reporting currency at the official exchange foreign currency at the date
reporting.
Report "Balance" contains items as assets and liabilities in foreign currency hryvnia
equivalent rate at 31 December 2009. Revaluation of all monetary exchange
balance account each time when the official NBU rate. Exchange
difference at all revaluation of balance sheet accounts related to the 6204 "Technical
reassessment "and recognized in the income statement results in" Gain on
revaluation of foreign currency. " Other assets and liabilities Foreign currency
(Non-monetary items) are recognized at the date of reporting at the official exchange rate of NBU
at the date of their initial recognition.
Income and expenditure in foreign currency accounts are recorded at 6 and 7 classes
national currency at the official NBU rate as at the date of accrual.
At the date of the financial reporting official Bank rate of hryvnia against foreign
currencies amounted to:
Currency 2010 2009
$ 100 798,50 770,00
EUR 100 1144,8893 1085,5460
10 Russian rubles 2,6402 2,6208
Policy bank executives about the risks of losses due to foreign exchange rate changes
currency is the choice of currency risk management strategies and decision
making. In 2009, carried out risk assessment and calculation of potential
losses (gains) related to currency fluctuation. Based on the real
situation and the size of the anticipated losses (income) for bank management Neutral
72
relates to the risk, or (at the level of adverse currency fluctuations)
used to prevent the projected exchange risk by selling or
purchase of liquid assets that made it possible to reduce the negative
a change of course.
Note 1.21. "Offsetting of assets and liabilities of articles"
Offsetting of assets and liabilities of articles not held by the bank.
Note 1.22 "Segment Reporting"
Segment - a separate component of the Bank that provides products or services and
exposed to risks and ensure profitability, other than those inherent in other
segments. Information on the segments that receive most of their income from
third parties, and income, results of operations or assets of which constitute not less than ten
interest from all segments presented separately from other segments.
The basic format for reporting segment information is the Bank's view
Information by operating segments.
Operating Segments
The Bank operates in four main operating segments:
o Servicing corporate clients of settlement accounts,
receiving deposits, granting overdrafts, loans and other services
lending, direct debiting of funds, foreign exchange transactions.
o Serving individuals - providing banking services to private
customers, maintaining current accounts of individuals receiving savings
deposits and deposits, custody services, service
credit and debit cards, loans.
o Interbank activity – accommodation and involvement funds on
interbank market, maintaining correspondent accounts, cash
systems, money transfers, foreign exchange transactions.
o Investments - trading financial instruments, Issue
debt securities and other related services.
Transactions between operating segments are on normal commercial
conditions. Funds usually reallocated between segments, which leads to
redistribution of costs of funding that is included in the calculation of operating
income. Interest accrued on those funds, calculated on the basis of cost
attracting capital. The Bank has no other significant items of income or expenses
transactions between operating segments. The results of each segment
reflect the internal charges and transfer pricing adjustments. For
appropriate distribution of income received from external customers between segments
used revenue sharing agreement.
Note 1.23. "The effect of changes in accounting policy and correction of significant errors"
The Bank applies a promising method for changes in accounting policy.
Prospective application means that the new accounting policy applies to events and
transactions that occur after the date of change in accounting policy, but is no
Adjustments to prior periods.
73
Amendments to the Regulation on Bank's accounting policies during the year, as
generally not permitted (except in the essential conditions of activity or legal basis).
Accounting policies can change only if the requirements of regulators, with
legal reasons or in cases where changes will lead to more adequate
display events or transactions in the financial statements of the Bank.
Not considered a change in accounting policy:
new accounting policy for transactions that are not essential;
new accounting policy for transactions, which differ substantially from
previous and committed earlier.
Accounting policies of the Bank in 2009 by rule sequences, defined
Law of Ukraine "On Accounting and Financial Reporting in Ukraine", stores
the principles and methods of evaluation of balance sheet and accounting,
Regulations identified the accounting policy for the year 2008.
Since the Bank's accounting policies contained all the principles and methods for evaluating the articles
balance, defined in the legislation, the effect of changes is not, thus provided
zistavlyannya and compare the financial report for 2009 from the previous reporting
period.
In 2009, the Bank does not vypravlyav significant errors that have influenced
financial statements of previous periods.
Adjustment postings that were made by the Bank during 2009, not
concerned corrects errors in previous periods.
Facts re-presentation of comparative information in the financial statements and the facts
re-promulgation of the amended financial statements were not.
74
Note 2. The economic environment in which the bank operates
Description of the economic environment in which the JSC UPB carries out its
activity
For 2009 results, macroeconomic conditions of economic development
continued to deteriorate. The volume of real gross domestic product and
industry declined because of unfavorable market situation in foreign markets,
reducing domestic demand and investments in fixed assets in the industry.
According to State Statistics Committee of Ukraine, the index
industrial output for 2009 was - 78.1%. During January-November 2009.
45,5% unprofitable enterprises. Most of these enterprises in construction
(56,3% of them are the corresponding activity), providing
public and individual services, culture and sports (52.5%), transport
and communication (48,9%), industry (47,8%). The physical volume of wholesale trade was
80,7% compared with 2008. Retail trade turnover by 2009. constituted 83.4% of the
2008р.
Consumer prices fell, which stems from cheaper world prices for
petroleum and petroleum products, low prices of domestic wheat, constraints
nature of monetary policy, National Bank of Ukraine, as well as slowing
growth in spending. Consumer price index (inflation) by 2009. in
a whole was 112.3% (in 2008. - 122.3%).
Growth income population primarily ensured increase
social standards (minimum wage, stipends, coefficient
evaluation one year insurance experience, etc.). The result was higher growth
rate of social assistance and other social transfers compared with growth
Wage fee. Fro more hand, dynamics real income continued
m
slow down. Index of real wages in January-November 2009. compared with
corresponding period of 2008. amounted to 90,0%.
Reduction of PPI and a slowdown in revenue growth
Ukraine's budget plan due to non-VAT on manufactured
goods in Ukraine showed consolidation trend deceleration in economic activity.
According to changes in macroeconomic and political environment of development
money market during 2009 had significant differences. Deterioration
economic situation, the peak of which fell in the first quarter of 2009, the monetary
market found reflection in the continuation of outflows from banks, reducing
liquidity in the banking system, lack of foreign currency and others. Instead, improving
some indices of the real economy, balance of payments and
cancel legal constraints in conducting monetary policy, starting
from the second quarter, improved the situation. Another important factor that
positively influenced the situation in the financial sector was a reduction of
stabilization measures taken by the National Bank of Ukraine and the continuation
Cooperation with the IMF in the "stand-by.
As a result, starting from April 2009 the monthly increase was observed
household deposits (except for a slight decline in September). Yet this dynamic could not
offset falling household deposits in the first quarter and annual rates of growth
remained negative. Overall, the 2009 overall the banking system, deposits
individuals fell by 1,9%. Deposits of legal persons for the same period declined by
18,0%. As a result, total deposits in 2009 decreased by 8,3%.
Reducing the amount of deposits from the beginning of the year accordingly affected
dynamics of money supply which volume in 2009 decreased by 5,5%. Fall Score
broad money was a reflection of the reduction in economic activity in general.
75
Instead of the monetary base in 2009 increased by 4,4% -
to 195.0 bln. Moreover, in 2009 the National Bank of Ukraine carried out the operation
redemption of government bonds from banks Ukraine totaling 34.89 billion. (Per
nominal value), the vast majority of which (amounting to 29.34 billion.) was
conducted under Article 2 of the Law of Ukraine on urgent measures to
prevent negative effects of the Amendments to Some
Legislative Acts of Ukraine "and is related to monetization of bonds issued by the Government of
to banks' capitalization.
Moreover, the Government in 2009 to provide funding for internal expenditure
Budget converted to hryvnia significant amounts of their foreign currency assets (including received from
IMF under the Stand-By Arrangement "), which also contributed to the increase of the monetary
base.
Simultaneously, growth in money supply was constrained by
National Bank of Ukraine of sale of foreign currency in
interbank market in order to prevent excessive fluctuations in exchange rate
rate.
In a prior financing social expenditure significant
portion of the money that came into circulation as a result of fiscal factors turned
for cash. This was appropriately reflected in the dynamics of individual components
monetary base. Thus, the volume of correspondent banks during 2009 decreased by 6,5%.
However, the volume of cash outside banks increased during the year by 1,5%.
The turbulence in the financial market, the National Bank of Ukraine
applied flexible approaches to regulation of bank liquidity, changing direction
their operations depending on the situation in the money market. Thus, in the first quarter in
terms of outflows from the banking system of the National Bank of Ukraine is mostly
carried out operations to support liquidity. Starting with the second quarter in
stabilization trend in the market began to form on surplus liquidity, which is also on
significant influence did fiscal factors. In such circumstances, the operation of the National
Bank of Ukraine on regulation of liquidity, since the second quarter, gradually became
mobilization orientation. It found expression in reducing the volume of transactions
refinancing and increasing the mobilization operations.
Thus, the volume of refinancing transactions during the second half of 2009 was 8.6
billion. while in the first half - 55.8 bln. Instead, the main part of mobilizing
Operations carried out in the second - fourth quarter. During this period the National Bank of Ukraine
attracted funds worth 86.1 billion. while in the whole 12 months - 96.7 billion
USD.
In addition, during August - September were strengthened requirements to
mandatory reserves. In particular, they introduced the requirement for storage
of required reserves in a separate account in the National Bank of Ukraine. In
December mandatory reserves that were transferred to a separate bank account
amounted to 5.8 billion. For the balance of required reserves listed banks
the separate account, charged at a rate of 30% discount rate.
Total required reserves, the bank formed in December
2009 (including funds transferred to a separate account) amounted to 12.2
billion.
Interest policy in 2009 was carried out adequately in the macroeconomic
situation and directed the maintenance cost of money at a positive level of
inflation in order to encourage the return of deposits in the banking system, leveling
depreciation pressure and inflation risks. Pursuant to the lowering of inflation
pressure and stabilize the monetary market, the National Bank of Ukraine
koryhuvav their interest rates.
76
Thus, during June - August, double declining discount rate, which currently
defined as the base rate on other interest rates of the National Bank of Ukraine.
In particular, discount rates 15.06.2009 has been reduced from 12% - 11%, and on 08/12/2009
- Up to 10.25%.
Weighted average interest rate for refinancing operations was
positive relative to inflation and in 2009 was 16,7%. Average rate
mobilization operations in 2009 was 6.6.
Activities of the National Bank of Ukraine to stabilize the situation in the money
credit market were directed mainly at limiting the speculative demand for
foreign currency and is not intended to limit banks lending support to economic
development. Despite the reduction of total loans balances (in
2009 to 2,1% - to 718.7 bln.), The balances of loans in local
currency increased by 16,9%. This was due to growth in balances
credits granted to legal entities in national currency - by 27,7%.
Given the positive trends to stabilize the money market, banks
reduced rates on its active operations. In particular, the average rate for
business loans in national currency decreased from 21,6% in December 2008 to
19,6% in December 2009, foreign currency - from 12,6% to 10,2%.
Instead, the average rate on deposits in national currency increased from
13,0% in December 2008 to 14,0% in December 2009, foreign currency - from 8.2% to
9,5%.
On the interbank money market the average rate for transactions
decreased from 23,5% per annum (including on overnight credits - 22.4%) in December 2008
to 7,0% (on overnight credits - 3,3%) in December 2009.
Impact of economic environment on the financial condition and results of
JSC "UPB"
As of 01.01.2010 in the State register of banks registered 197 banks
that of other depository corporations sector. In 2009, it was
included 5 banks 6 banks and excluded (due to liquidation). License for
banking operations of 01.01.2010 had 182 banks, including the implementation
currency transactions - 181 Bank. Number of banks with foreign capital that had a license
for banking operations, with the beginning of the year decreased by 2 banks at the end
on December 51 Bank, including 18 banks - with 100 percent foreign
capital (beginning of year - 17 banks). This number of banking institutions and high
share of banks with foreign capital, create favorable conditions for development
competition in the banking market, which is reflected in policy
Open Joint Stock Company "Ukrainian Professional Bank, aimed at
expanding range of operations, providing competitive interest rates.
Network of institutions on 01.01.2010 numbered 1093 operating branches (in
216 less than at the beginning of the year). At the other end of December deposit corporation had in
within Ukraine 114 subsidiaries abroad - 8. Against such tendencies in
banking system, Open Joint Stock Company "Ukrainian Professional
Bank in 2009 had to work in low confidence in banking institutions,
while ensuring the stability of its network of branches.
In 2009 it was suspended or terminated license for
of banking operations in 7 banks, including four banks - to carry out
currency transactions. During the reporting period in 8 banks were revoked license on
all banking transactions (including currency). In this situation the fact that
Ukrainian Professional Bank has a "full" license and is one of the few banks that
have the right to provide all defined by law banking becomes
additional argument in favor of the Bank's competitive advantages.
77
Liabilities for deposits from other sectors (which
constituted a significant proportion of deposit liabilities of other corporations), with the beginning of the year
decreased by 8.6%. Liabilities to central government
beginning of the year increased from 2.5 times. Open Joint Stock Company "Ukrainian
Professional Bank "exposed to the rate reductions account balances
clients that recorded for the banking system as a whole.
Funds shares and other forms of equity deposit corporations
In 2009, increased by 7.4%, and of 01.01.2010 amounted to 145.9 billion.
(Growth year on year at 01.01.2009 amounted to 75.4%). Basically it
was secured by increasing the size of the registered share capital paid.
JSC "UPB" in 2009 did not carry out an additional issue of shares, and enlarged
capital base solely by positive financial results for the
2009 and previous years. Contributions to unregistered capital is
9500.00 thous.
Ratio of long-term loans long term deposits
from the beginning of the year declined sharply (from 31.1% to 16.2%) due to substantial excess
rate reductions on long-term deposits as loans to non-financial sector
corporations and households sector. Gaps in terms of assets and liabilities
characterized in the reporting year and for "UPB", indicating the general line
the banking market.
Other depository corporations Revenues in 2009 totaled 143.0
billion. and increased over the previous year by 16.7%. Main article
incomes still have interest income, which amounts compared with the corresponding
period last year increased by 37.0% and their share in total income
was 84.7 against 72.1% on 01.01.2009 the same time decreased
commission income by 3.7 billion. - Up to 16.2 bln. and therefore reduce their
share in total income from 16.2 to 11.3%. Open Joint Stock Company "Ukrainian
Professional Bank ended 2009 with indicators that meet the general
trends in the banking system.
Costs of other depository corporations increased by 57.4% and reached 181.4 billion
USD. This primarily was due to significant amounts of residue on the formation of reserves
which increased by 3.1 times year on 01.01.2010 and amounted to 75.4 billion. (Or 41.6% of all
costs of banks). Interest expense (previously they were the largest expense item)
amounted to 66.6 billion. (By 31.0% more than 01.01.2009), but their share
decreased to 36.7% (against 44.1% 01.01.2009). In particular, it was associated with
decrease the volume of deposits other depositary corporations from other
sectors.
As of 01.01.2010 There were negative financial result
of the banking sector of $ 38.4 billion., which is associated with subsequent
rising costs at a faster pace compared to income.
Growth costs JSC UPB "slightly exceeded the growth rate
income, but this was not an obstacle in obtaining a positive financial result for
2009.
Reducing business customers, caused a general weakening
economy reduced the capacity of banks to increase the resource base.
Direction of JSC "UPB" to the priority needs of customers in a timely
payments and commitment to maintain sufficient liquidity on the background of the delay
payments by some other banks have caused breaks in the maintenance time required
balance liquidity JSC UPB.
Change requirem National Bank led to growth standards
ents
reserve requirement and has prompted to raise additional funds in
78
those on the interbank market against a background of reducing limits on interbank transactions
between banks.
All these factors and the corresponding economic and political situation that arose in
country naturally impact on the activities of OAO "UPB" that affected the
slowdown in growth of assets, worsening the situation with the assistance of funds from private
those structures redistribution of funds for the benefit of foreign currency deposits,
deteriorating quality of loan portfolio due to financial difficulties of some
borrowers.
At the same time, the Bank performs all the required economic standards set
National Bank of Ukraine and has adequate performance and asset quality
profitability.
Vik. Reutov LP
461-82-89
79
Note 3. "The transition to new and revised standards and interpretations that
provide the context in which standards should read "
The bank has used the all new and amended standards and interpretations that
provide the context in which to read the standards relating to its operations and
which became effective at the reporting period, which began on 1 January 2009.
Adoption of new and amended standards and interpretations has not led to changes in accounting
Bank policy, which was used to display the data current and previous
years.
Here are those new or amended standards and interpretations that apply
or will be applied in future to the Bank.
Introduction of new or revised standards and interpretations in 2009.
Certain new IFRSs became effective and were required to use
Bank on 1 January 2009:
I. Perfection International Standards financial Reporting
(Published in May 2008).
1. In 2007, the International Accounting Standards adopted
applications that year project to improve the IFRS as a method that allows
make the necessary but not urgent changes to existing International Financial
statements. The changes were published in May 2008, is a combination of changes in substance and
clarifications and corrections of various terminology standards. The changes essentially concern
following: classification of articles held for sale under IFRS 5 in
case of loss of control of a subsidiary, to financial inclusion
instruments held for trading, the category of long-term according to
IAS 1, accounting for the sale of assets IAS 16, which previously kept for
rental income, and the appropriate classification of cash flows as per IAS 7 Cash
flows from operating activities, explained that the definition reduction
pension plan under IAS 19, accounting government loans at below market
interest rates under IAS 20, bringing the definition of costs
loans in compliance with IAS 23 in the effective interest method; explanation
Accounting subsidiaries held for sale under IAS 27 and
IFRS 5, reducing the amount of disclosure requirements on companies and associates
joint ventures under IAS 28 and IAS 31, increasing the amount of information
to be disclosed in accordance with IAS 36; explanation of the cost of
advertisement in accordance with IAS 38; modified definition of financial instruments
at fair value, with such changes on its financial performance,
bringing it into compliance with the principles of hedge accounting under IAS 39;
determine the accounting treatment for investment property that is under
construction, in accordance with IAS 40 and reducing restrictions on the method for defining
fair value of biological assets in accordance with IAS 41. Other changes to
IAS 8, 10, 18, 20, 29, 34, 40, 41 and IFRS 7 - it only changes the terminology or
editorial changes, according to the IASB did not have an impact on accounting
records or have minimal impact.
2. Improving disclosure of financial instruments - IFRS Change
7 Financial Instruments: Disclosure "(published in March 2009;
effective for annual periods beginning on 1 January 2009 or after this
date). These changes are part of measures by the IASB in response to the financial
crisis and take into account the findings of "Great Twenty" (G20), aimed at improving
transparency and improving accounting principles. These improvements also
reflect the deliberations of the Consultative Group of Experts on the IASB
80
evaluation and disclosure of fair value of financial instruments for
absence of active markets. The Bank is currently assessing the impact of the amended
standard on its consolidated financial statements for reporting purposes as of
year end.
3. IAS 1 Presentation of Financial Statements (revised in September 2007,
effective for annual periods beginning on 1 January 2009 or after this
date). The main change in IAS 1 - a replacement statement of financial performance report on
total income, which will also include all changes in equity
enterprises that are not related to transactions with shareholders such as the revaluation of financial
assets for sale. Alternatively, companies may
submit two reports: a separate income statement and statement of comprehensive income
losses. In addition, the revised IAS 1 introduces the requirement to submit in the annual
statements report the financial position of the beginning of the earliest comparative period in
Whenever the company transforms benchmarks by
reclassifications, changes in accounting policy or correction of errors. The revised IAS
1 has the effect of the filing of financial statements of banks, but has no impact on recognition and
evaluate specific transactions and balances of these transactions.
4. IFRS 8 Operating Segments (effective for annual periods
Starting from 1 January 2009 or after that date). IFRS 8 applies to the subjects
management, debt or equity instruments are bought and
sold on the open market, as well as those who serve or plan to submit
financial statements to regulators in connection with placing instruments of any
class in the open market. IFRS 8 requires to provide financial and descriptive information
of segments in which the entity operates and determines how
He has a way to provide such information. Information on operating segments
disclosed in accordance with accounting principles used to prepare
internal reporting, which is the body responsible for making operational
decisions.
Other standards and interpretations:
Booking terms and cancellation of rights to shares - Change of IFRS 2 based Payment
shares "(issued in January 2008, effective for annual periods beginning on
January 1, 2009 or after) *;
· Interpretation IFRIC 13 "Customer Promotion Programs" (released in June 2007
year, effective for annual periods beginning on 1 July 2008 or after
this date) *;
· Interpretation IFRIC 15 Agreements for the construction of real estate "
(Effective for annual periods beginning on 1 January 2009 or after this
date) *;
· Interpretation IFRIC 16 "hedging instruments net investment in foreign
activity "(effective for annual periods beginning on October 1, 2008 or
after this date) *;
· IAS 23 Borrowing Costs (revised March 2007)
(Effective for annual periods beginning on 1 January 2009 or after this
date) *;
· IAS 32 and IAS 1 change "Financial Instruments with the right maturity and
obligations arising from the liquidation "(effective for annual periods
Starting from 1 January 2009 or after) *;
· Cost investments in subsidiary, jointly controlled entity
and associated companies - IFRS 1 and IAS 27 change (effective for annual periods
starting from 1 January 2009 or after that date).
II. New Accounting Pronouncements
81
Were published separate new Standards and interpretation that will
mandatory for use by the Bank in the annual accounting periods beginning 1 January
2010 and thereafter.
1. IAS 27 Consolidated and Separate Financial Statements (as revised in January
2008; effective for annual periods beginning on 1 July 2009 or
after that date). Pursuant to the requirements of revised IAS 27 the total of all kinds
income business entity must apply to the holders of the parent
companies and non-controlling members (previously - minority interests), even if
resulting in non-controlling parties arising damage. Existing standards in
most cases requires that the damages exceed the share of non-controlling
participants belong to the owners of the parent company. In addition, the revised
IAS 27 also indicated that changes in ownership interest in the parent child
companies that do not lead to loss of control must be accounted for as equity transactions. In
standard as described evaluation method gain or loss resulting
loss of control over the subsidiary. Any investment that is stored in
former subsidiary be measured at fair value at the date of loss
control.
2. IFRS 3 Business Combinations (revised January 2008;
apply to transactions with business combinations, which refers to the date of purchase
the first annual fiscal period beginning on 1 July 2009 or after this
date). The revised IFRS 3 provides economic entities the right to choose
non-controlling interests on the evaluation of participants - or the method described in
existing IFRS 3 (proportion of net customer assets that can be
defined) or at fair value. The revised IFRS 3 are described more
principles of accounting operations with the merger of the method of acquisition. In addition, an
The requirement to measure at fair value every asset and every
commitment at every stage of a phased acquisition transactions in order to determine
share of goodwill. Instead, goodwill is assessed as the difference between the acquisition date
fair value of investment in a company that existed before the acquisition, transferred
compensation and the net assets acquired. The costs of operation
acquisition are shown separately from the cost of business combination and, accordingly,
are recognized as expenses rather than included in goodwill. At the date of purchase buyer
must recognize a liability related to the amount of conditional rewards for the company,
he buys. Changes in the fair value of such obligations after the date of purchase
recognized as appropriate in accordance with other applicable IFRSs, and not by
adjustment of goodwill. Scope revised IFRS to apply now
business combinations involving only joint ventures and business combinations
solely by the contract.
3. Improvement of International Financial Reporting Standards (published in
April 2009, changes IFRS 2, IAS 38, IFRIC interpretations IFRIC Interpretation 9 and 16
applied for annual periods beginning on 1 July 2009 or after this
date, changes IFRS 5 IFRS 8, IAS 1, IAS 7, IAS 17, IAS 36 and IAS 39
applied for annual periods beginning on 1 January 2010 or after this
date). These improvements are a combination of changes in fact and interpretations of such
standards and interpretations: an explanation that the contributions in the operation of enterprises under common
control and joint ventures are not within the scope of IFRS
2; clarify disclosure requirements in accordance with IFRS 5 and other standards
on fixed assets (or disposal groups) classified as category of assets
held for sale or discontinued operations, requirements to disclose in reports
information on the overall assessment of assets and liabilities for each reporting segment
IFRS 8, only if the information about the following amounts regularly given to persons or
bodies responsible for making operational decisions and change in IAS 1, which allows
82
carry some obligations on which the calculation of own equity
instruments of the entity in the category of long-term, change in IAS 7,
according to which only those assets that give rise to an asset can be
classified as investments; permission to carry some long-term
lease land to the category of finance leases under IAS 17 even without
Transfer of ownership of land after the lease term, providing additional
recommendations in IAS 18 to determine the fact whether the entity acts
principal or agent; clarification in IAS 36, a unit that generates cash
flows can not be more operational segment to merge; supplement IAS 38,
to assess the fair value of intangible assets acquired in the course
operation of merger and change in IAS 39, which (i) includes the scope of
the standard option contract that may lead to a business combination, (ii)
clarifies reclassification period profit or loss on instruments that hedges
cash flows from the category of capital to financial performance, (iii) specifies that
early repayment is closely connected with the main contract, if after
accesskeys borrower compensates the lender the economic loss and change
Interpretation IFRIC 9, which stipulates that the scope of this interpretation is not
include derivatives embedded in contracts purchased during the joint operations
control, and joint ventures, as well as removal of interpretation
IFRIC 16 restrictions that have prohibited foreign hedging instrument
activities in respect of which is hedging.
4. IFRS 1 First-time Adoption of International Financial Reporting Standards
(Revised in July 2009, effective for annual periods beginning from 1
January 2010 or after, but early application is permitted). These changes
applied to the retrospective application of IFRS in specific situations and
are designed to ensure the absence of companies that are in transition
registered under IFRS, unreasonable expenditure of money or manpower. Changes in IFRS 1
exempt entities that are fully registered at cost, from
retrospective application of IFRS accounting for oil and gas assets, and
exempt entities that have already signed lease contracts from
review the classification of these contracts in accordance with Interpretation IFRIC 4 Determination
rental availability in the contract "if the application of national standards
accounting allowed to get the same result.
Articles that meet the criteria for hedge accounting - IAS 39 change
Financial Instruments: Recognition and Measurement (effective retrospectively for annual
periods beginning on 1 July 2009 or subsequent date, may
early application).
IFRIC Interpretation 17 "The distribution of non-cash assets to owners' (used
for annual periods beginning on 1 July 2009 or after that date).
IFRIC Interpretation 18 "The transfer of client assets (applicable to transactions
the transfer of assets made from 1 July 2009 or after that date).
Estimation of the introduction of new or revised standards and
interpretations on the financial position at 31 December 2008 and 31 December 2009 and on
results of its operations in 2009 and 2008 financial years were not conducted. However,
The Bank believes that the approved but not yet listed in force new standards and interpretations not
will have a significant impact on the Bank's financial statements.
Vik. Milevsky AL
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83
Note 4. Cash and cash equivalents
Table 4.1. Cash and cash equivalents
Data notes used for calculating the article "Cash and cash
equivalents "line 1 of the Report" Balance "and line 1 tabl.29.6., 29.7" Geographical Risk
Partly for the calculation of an article entitled "Accrued income" line 4 and to calculate articles
"Cash and cash equivalents at beginning of year" row 32 and "Cash and cash
equivalents at end of year "row in 1933 Report on cash flow.
(Thousand).
Line Item 2009 2008
1 2 3 4
1 Cash 25 723 24 071
2 Funds in the National Bank of Ukraine 14 269 12 969
(Excluding reserve requirements)
3 Funds required reserves 9 107 14 257
4 Funds in bank reserve requirements 9 752 -
National Bank of Ukraine
5 Correspondent accounts and deposits 247 531 60 832
"Overnight" in banks:
5.1 Ukraine 247 531 60 832
6 Total cash and cash 306 382 112 129
Replacement Parts
Cash and cash equivalents are not burdened contractual obligations under the
repurchase agreements.
The amount of accrued interest income not received is 25.4 ths.
Vik. Kolomiychenko NA
461-82-80
84
Note 5. Other securities are carried at fair value
recognized through profit results
Data notes used for calculating the article "Other financial assets
at fair value with recognition of the revaluation in
financial performance "line 2 Report" Balance ", line 3 tabl.29.6., 29.7" Geographical
risk, "partly to calculate the articles" Accrued income "line 4 and" Net
(Increase) / decrease by other financial assets that appear by
fair value recognized through revaluation profit / loss "line 10 of the Report
cash flow.
Table 5.1. Other securities are carried at fair value
recognized through profit results
(Thousand).
Line Item 2009 2008
1 2 3 4
1 Corporate Bonds 10 535 193 334
Total debt securities
2 at fair 10 535 193 334
value with recognition
through profit or loss
3 Corporate equities, investment - 2 700
certificates.
Total other securities
at fair
4 10 535 196 034
value with recognition
through profit
results
The Bank carried no other securities, at fair value
recognized through profit results to the trading of securities,
Because he had no intention of earning profits as a result of short-term
fluctuations in price or dealer's margin and the sale of these securities in the near future.
The amount of accrued interest income not received is 415.4 thous.
85
Table 5.2. Analysis of the credit quality of debt securities accounted for
fair value wit recognition result Revaluation in financial
h
results for 2009
Bonds (Thousand).
Line Item State Bonds Bill Total
local
Bonds enterprises
Loans
1 2 3 4 5 6 7
Current price of debt
securities
1 accounted for 10 535
fair value
recognition
through profit
Results:
1.1 Rated AAA - - - - -
1.2 Rated from AA-to - - - - -
AA
1.3 Rated from A-to A - - - - -
1.4 Rated below A- - - - - -
1.5 Those that have no rating - - 10 535 - 10 535
Debt securities
accounted for
fair value
2 recognition - - - - -
through profit
results,
maturity were
reviewed in the reporting
year
Total debt securities
securities at the current
3 price, which accounted 10 535
at fair value
with recognition through
profit
results
Not repaid within the
stipulated
term debt issuer
4 -
securities
accounted for
fair value
recognition of
through profit
Results: of payment to
With delay
4.1 - - - - -
31 days
4.2 With delay of payment - - - - -
32 to 92 days
4.3 With delay of payment - - - - -
93 to 183 days
86
4.4 With delay of payment - - - - -
184 365 (366) days
4.5 With delay of payment - - - - -
more than 366 (367) days
Total debt securities
accounted for
5 fair value 10 535
recognition
through profit
results
Table 5.3 Analysis of the credit quality of debt securities accounted for
fair value wit recognition result Revaluation in financial
h
results for 2008
(Thousand).
State Bonds Bonds
Line Item local Bill Total
Bonds enterprises
Loans
1 2 3 4 5 6 7
Current price of debt
securities
1 accounted for 193 334
fair value
recognition
through profit
Results:
1.1 Rated AAA - - - - -
1.2 Rated from AA-to - - - - -
AA
1.3 Rated from A-to A - - - - -
1.4 Rated below A- - - 109 320 - 109 320
1.5 Those that have no rating - - 84 014 - 84 014
Debt securities
accounted for
fair value
2 recognition of - - - - -
through profit
results,
maturity were
reviewed in the reporting
year
Total debt securities
securities at the current
3 price, which accounted 193 334
at fair value
with recognition of
through profit
results
4 Not repaid within the -
stipulated
term debt issuer
87
securities
accounted for
fair value
recognition of
through profit
Results:
4.1 With delay of payment to - - - - -
31 days
4.2 With delay of payment - - - - -
32 to 92 days
4.3 With delay of payment - - - - -
93 to 183 days
4.4 With delay of payment - - - - -
184 365 (366) days
4.5 With delay of payment - - - - -
more than 366 (367) days
Total debt securities
securities
5 accounted for 193 334
fair value
recognition of
through profit
results
Vik. Hladarenko SF
461-82-96
88
Note 6. Due to banks
Data notes used for calculating the article "Due to banks"
Line 3 of the Report "Balance", line 4 tabl.29.6., 29.7. "geographic risk," partly for
calculating the article "Provision for loans and other financial
Asset line 8 the income statement, and in part to calculate articles
"Net increase (decrease) in provisions for assets" line 3, "Accrued income"
line 4, and "Net (increase) / decrease in funds from other banks" line 11 Traffic Report
funds.
Table 6.1. Due to banks
(Thousand).
Line Item 2009 2008
1 2 3 4
1 Loans to other banks: 202 921 126 957
1.1 Short-term 202 921 89 301
1.2 Long-term - 37 656
2 Other funds with other banks 16 744 13 136
3 Provision for impairment of assets in other (576) (4276)
banks
4 Total funds in banks net of 219 089 135 817
reserves
The amount of accrued interest income not received is 27.1 ths.
Table 6.2. The analysis of credit quality due from banks in 2009
(Thousand).
Contracts
Correspondent
purchase and
Line Item accounts Loans Total
Feedback
in other
Sales
banks
1 2 4 5 6
3
1 Current and neznetsineni: - - 87 839 87 839
1.1 In the 20 largest banks - - 79 854 79 854
1.2 In other banks of Ukraine - - 7 985 7 985
In large banks of
1.3 - - - -
OECD
In other countries banks
1.4 - - - -
OECD
1.5 Other banks - - - -
Due from banks, provided
2 which were revised in - - 3 993 3 993
financial year
Total loans and current
3 - - 91 832 91 832
neznetsinenyh
89
Depreciation funds
4 evaluated on an individual - - - -
basis:
4.1 With delay of payment to - - - -
31 days
4.2 With delay of payment - - - -
32 to 92 days
4.3 With delay of payment - - - -
93 to 183 days
4.4 With delay of payment - - - -
184 365 (366) days
4.5 With delay of payment - - - -
more than 366 (367) days
5 Other funds in other 16 744 - 111 089 127 833
banks
6 Provision for depreciation (2) - (574) (576)
due from banks
Total funds in other
7 banks less 16 742 - 202 347 219 089
reserves
Table 6.3 Analysis of credit as money in other banks 2008rik
(Thousand).
Corresponde Contracts
Line Item purchase Loans Total
nt accounts and
in other Feedback
1 2 banks3 Sales
4 5 6
1 Current and neznetsineni: - - 32 164 32 164
1.1 In the 20 largest banks - - 7 700 7 700
1.2 In other banks of Ukraine - - 24 464 24 464
1.3 In large banks of - - - -
OECD
1.4 In other countries banks - - - -
OECD
1.5 Other banks - - - -
Due from banks, provided
2 which were revised in - - - -
financial year
3 Total loans and current - - 32 164 32 164
neznetsinenyh
Depreciation funds
4 evaluated on an individual - - 1 664 1 664
basis:
4.1 With delay of payment to - - - -
31 days
90
4.2 With delay of payment - - - -
32 to 92 days
4.3 With delay of payment - - - -
93 to 183 days
4.4 With delay of payment - - - -
184 365 (366) days
4.5 With delay of payment - - 1 664 1 664
more than 366 (367) days
5 Other funds in other 13 136 - 93 129 106265
banks
6 Provision for depreciation (43) - (4 233) (4 276)
due from banks
Total funds in other
7 banks less 13 093 - 122 724 135 817
reserves
Table 6.4. The analysis of the provision for impairment of due from banks
(Thousand).
2009 2008
Line Movement of reserves funds Contracts funds Contracts
other Feedback other Feedback
banks repo banks repo
1 2 3 4 5 6
1 Provision for impairment as (4 276) - (3 103) -
January 1,
(Increase) / decrease
2 provision for impairment 1 973 - (1 173) -
year
3 Writing off bad 1 727 - - -
debt
4 Transfer to Asset - - - -
retirement
5 Disposal of subsidiaries - - - -
6 Exchange differences in provisions - - - -
Provision for impairment on
7 As of 31 (576) - (4 276) -
December
Vik. Kolomiychenko NA
461-82-80
Milevsky AL
461-82-89
91
Note 7. Loans to customers
Data Notes used for calculation Article "Loans and
due from clients "line 4 of the Report" Balance ", line 5 tabl.29.6., 29.7" Geographical
risk, "partly for calculating the article" Provision for loans "line 8
Income statement, and in part to calculate the articles "Net increase
(Decrease) in provisions for assets "line 3," Accrued income "line 4, and" Net
(Increase) / decrease in Loans to customers "line 12 Traffic Report
funds.
Table 7.1. Loans to customers
(Thousand).
Line Item 2009 2008
1 2 3 4
1 Loan bodies - -
state and local
self-government
2 Loans to legal entities 1 364 002 1 162 675
3 Loans operations - -
repo
4 Loans to individuals 789 1 019
entrepreneurs
5 Retail mortgage 21 623 22 806
6 Consumer loans to individuals 143 092 195 855
7 Other loans to individuals 738 1 109
(Overdrafts on current accounts and
card accounts)
8 Provision for loan impairment (104 149) (58 150 )
9 Total net loans 1 426 095 1 325 314
reserves
As of 31 December 2009 in the bank balance is accounted credits
provided by operations of repurchase.
The amount of accrued interest income not received is 22 412.5 thous.
Vik. Shaforost NA
461-82-80
92
Table 7.2. The analysis of reserves for loans in 2009
(Thousand).
Loans Loans Loans Mortgage Consumer Other
given to bodies Loans provided physical
Line Movement of Loans Loans Loans Total
government Legal by persons -
physical physical physical
and local Banking operations enterprise
people Banking Banking
self-government repo s
reserves yemtsya
1 2 3 4 5 6 7 8 9 10
m
1 Balance as at 1 - (28 133) - (93) (2 457) (27 321) (146) (58 150)
January
(Increase) / decrease
2 provision for impairment - (30 382) - 41 (9 563) (6 381) 136 (46 149)
year
Writing off bad
3 debt through - 150 - - - - - 150
reserve
4 Transfer to assets - - - - - - - -
disposal group
5 Disposal of subsidiaries - - - - - - - -
Companies
6 Exchange differences on - - - - - - - -
reserves
7 Balance as at - (58 365) - (52) (12 020) (33 702) (10) (104 149)
of 31 December
Vik. Milevsky AL
461-82-89
93
Table 7.3. The analysis of reserves for loans in 2008
(Thousand).
Loans Loans Loans Mortgage Consumer Other
given to bodies Loans provided physical
Line Movement of Loans Loans Loans Total
government Legal by persons -
physical physical physical
and local Banking operations enterprise
people Banking Banking
self-government repo s
reserves yemtsya
1 2 3 4 5 6 7 8 9 10
m
1 Balance as at 1 - (13 318) - (15) (1 710) (9 772) (108) (24 923)
January
(Increase) / decrease
2 provision for impairment - (15 228) - (78) (747) (17 549) (38) (33 640)
year
Writing off bad
3 debt through - 413 - - - - - 413
reserve
4 Transfer to assets - - - - - - - -
disposal group
5 Disposal of subsidiaries - - - - - - - -
Companies
6 Exchange differences on - - - - - - - -
reserves
7 Balance as at - (28 133) - (93) (2 457) (27 321) (146) (58 150)
of 31 December
Vik. Milevsky AL
461-82-89
94
Table 7.4. The structure of loans by economic activity
(Thousand).
economic 2009 2008
Line
activity sum % sum %
1 2 3 4 5 6
Agriculture,
1 hunting and Related to
40 162 3 40 144 3
their services
2 Production of food
products, beverages 135 430 10 135 332 10
3 Manufacture of leather,
- - - -
products
4 Textile industry 802 - 1 203 -
leather and other materials
Manufacture of wood and
5 production of wares
15 052 1 18 865 1
wood, except furniture
Manufacture of paper
6 pulp, paper, cardboard and
- - 362 -
products from them
Publishing and polihrafichna
7 and reproduction
81 - 81 -
recorded media
8 Manufacture of rubber and
plastic products 804 - 912 -
9 Metallurgical production 183 - 145 -
10 Manufacture of fabricated
metal products 93 305 6 42 817 3
11 Manufacture of machinery and
Equipment - - 3 357 -
12 Production of cars,
trailers and semitrailers 52 301 3 43 712 3
13 Manufacture of furniture;
manufacture of other products 29 714 2 27 528 2
14 Construction 258 123 17 146 602 11
Trade and cars
motorcycles, their
15 maintenance and repair
Retail
cars and 20 - 2 943 -
motorcycles
Wholesale Trade
16 intermediary in wholesale
414 167 27 304 579 22
Trade
Retail trade, repairs
17 household goods and
3 - 26 839 2
personal
95
use
18 Activities of
Hotels and restaurants 675 - 908 -
Additional transport
19 services, and support
7 669 - 7 581 1
operation
20 Activities address and communication 36 785 2 36 783 3
21 Cash and Financial
mediation 15 411 1 17 488 1
Auxiliary services in
22 financial intermediation
- - 21 076 2
and insurance
23 Transactions with real
property 156 976 10 220 739 16
Renting of machinery and
equipment, rolling
24
household products and
personal 738 - 1 021 -
use
Activities in the fields of law,
25 Accounting
engineering, services 101 222 7 59 464 4
entrepreneurs
26 Health and
Social Assistance - - - -
27 Education 2 239 - 3 012 -
Sanitary services
28 scavenging and
- - 57 -
destruction of waste
29 Providing individual
Services 142 - 145 -
30 individuals Loans
165 453 11 219 769 16
31 Total: 1 530 244 100 1 383 464 100
Vik. Shaforost NA
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96
Table 7.5. Information concerning the provision of loans for 2009
(Thousand).
Loans
provided Loans Loans
Loans Mortgage Consumer Other
Line Name bodies
provided physical Total
State Loans and loans Loans
Legal by persons -
Article government physical physical physical
individuals operations enterprise
and people Banking Banking
m repo s
Local
yemtsyam
governments
1 2 ing
3 4 5 6 7 8 9 10
1 Unsecured loans - 302 - - - 204 738 1 244
2 Loans 1 529 000
provided:
2.1 Guarantees and - 30 - 3 1371 305 - 1 709
bail
2.2 Collateral, 1 527 291
including:
2.2.1 Real estate - 3 449 - - 12 238 46 793 - 62 480
residential purpose
2.2.2 Other real estate - 741 975 - - - 73 248 - 815 223
2.2.3 Securities - 292 453 - - - - - 292 453
2.2.4 Cash deposits - 156 174 - 606 - 1 102 - 157 882
2.2.5 Other assets - 169 619 - 180 8 014 21 440 - 199 253
3 Total loans and 1 530 244
clients debt
Vik. Shaforost NA
461-82-80
97
Table 7.6. Information concerning the provision of loans for 2008
(Thousand).
Loans Loans Loans Mortgage Consumer Other
given to bodies Loans provided physical
Line Item Loans Loans Loans Total
government Legal by persons -
physical physical physical
and local Banking operations enterpris
people Banking Banking
self-government repo es
1 2 3 4 5 yemtsya
6 7 8 9 10
m
1 Unsecured loans - 608 - - - 782 1 109 2 499
2 Loans secured by: 1 380 965
2.1 Guarantees and - 3 081 - - - 535 - 3 616
bail
2.2 Collateral, 1 377 349
including:
2.2.1 Residential Real Estate - 3 321 - 21 22 266 62 918 - 88 526
appointment
2.2.2 Other real estate - 811 289 - - 540 91 132 - 902 961
2.2.3 Securities - 25 082 - - - 0 - 25 082
2.2.4 Cash deposits - 99 053 - 606 - 23 469 - 123 128
2.2.5 Other assets - 220 241 - 392 - 17 019 - 237 652
3 Total loans and 1 383 464
debt clients
Vik. Shaforost NA .
461-82-80
98
Table 7.7. Analysis of the credit quality of loans in 2009
(Thousand).
Loans Loans Loans Mortgag Consumer Other
given to bodies Loans provided physical
Line Item Loans Loans Total
government Legal by persons - e
physical physical
and local Banking operations enterpris Loans Banking Banking
self-government repo es physical
1 2 3 4 5 yemtsya
6 people
7 8 9 10
m
1 Current and neznetsineni: 94
Big borrowers with
1.1 credit history - - - - x x x 0
over 2 years
1.2 New large - - - - x x x 0
borrowers
1.3 Loans average - - - - x x x -
Companies
1.4 Small Loans - - - - x x x -
Companies
1.5. Loans to individuals x x x x - 94 - 94
Banking
Loans whose terms have
2 during the year were - 144 879 - - 2 412 7 939 - 155 230
revised
3 Overdue, but 314
neznetsineni:
3.1 With delay of payment to - - - - - 37 - 37
31 days
3.2 With delay of payment - - - - - - - -
32 to 92 days
99
3.3 With delay of payment - 81 - - - 196 - 277
93 to 183 days
3.4 With delay of payment - - - - - - - -
184 365 (366) days
With delay of payment
3.5 more than 366 (367) - - - - - - - -
days
Distressed credits
4 evaluated on an individual 154 439
basis:
4.1 With delay of payment to - 4 739 - - 529 5 665 - 10 933
31 days
4.2 With delay of payment - 551 - - - 10 543 - 11 094
32 to 92 days
4.3 With delay of payment - 1 027 - - 1 371 7 762 - 10 160
93 to 183 days
4.4 With delay of payment - 63 401 - - 1 427 6 167 - 70 995
184 365 (366) days
With delay of payment
4.5 more than 366 (367) - 8 334 - 606 10 588 31 729 - 51 257
days
5 Other loans - 1 140 990 - 183 5 296 72 960 738 1 220 167
6 Provision for impairment - (57 628) - (51) (12 171) (34 058) (241) (104 149)
on
7 credits
Total loans 1 426 095
Vik. Shaforost NA
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100
Table 7.8. Analysis of the credit quality of loans in 2008
(Thousand).
Loans Loans Loans Mortgag Consumer Other
given to bodies Loans provided physical
Line Item Loans Loans Total
government Legal by persons - e
physical physical
and local Banking operations enterpris Loans
Banking Banking
self-government repo es physical
1 2 3 4 5 yemtsya
6 people
7 8 9 10
m
1 Current and neznetsineni: 18 974
Big borrowers with
1.1 credit history - - - - x x x 0
over 2 years
1.2 New large - - - - x x x 0
borrowers
1.3 Loans average - 18 865 - - x x x 18 865
Companies
1.4 Small Loans - - - - x x x 0
Companies
1.5. Loans to individuals x x x x - 109 - 109
Banking
Loans whose terms have
2 during the year were - 23 717 - 21 - 3 506 - 27 244
revised
3 Overdue, but 12
neznetsineni:
3.1 With delay of payment to - - - - - 12 - 12
31 days
3.2 With delay of payment - - - - - - - -
from 32 to 92 days
101
3.3 With delay of payment - - - - - - - -
from 93 to 183 days
3.4 With delay of payment - - - - - - - -
from 184 to 365 (366) days
With delay of payment
3.5 more than 366 (367) - - - - - - - -
days
Distressed credits
4 evaluated at 89 490
individual basis:
4.1 With delay of payment to - 30 658 - - - 10 156 - 40 814
31 days
4.2 With delay of payment - 145 - - 2 128 17 716 - 19 989
from 32 to 92 days
4.3 With delay of payment - 2 272 - - - 3 481 - 5 753
from 93 to 183 days
4.4 With delay of payment - 547 - - 2 552 5 168 - 8 267
from 184 to 365 (366) days
With delay of payment
4.5 more than 366 (367) - 2 444 - - 7 610 4 604 9 14 667
days
5 Other loans - 1 084 028 - 998 10 516 151 103 1 099 1 247 744
6 Provision for impairment - (28 125) - (93) (8 439) (21 170) (323) (58 150)
on
7 credits
Total loans 1 325 314
Vik. Shaforost NA .
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102
Table 7.9. The fair value of collateral on past due loans but neznetsinenymy and individually impaired
loans are assessed on an individual basis, for 2009
(Thousand).
Loans Loans Loans Mortgage Consumer Other
given to bodies Loans provided physical
Line Item Loans Loans Loans Total
government Legal by persons -
physical physical physical
and local Banking operations enterprise
people Banking Banking
self-government repo s
1 2 3 4 5 yemtsya
6 7 8 9 10
m
Fair value
1 providing for 1 002
overdue, but
neznetsinenymy credits:
1.1 Residential Real Estate - - - - - - - -
appointment
1.2 Other real estate - - - - - 551 - 551
1.3 Securities - - - - - - - -
1.4 Cash deposits - - - - - - - -
1.5 Other assets - 250 - - - 201 - 451
Fair value
2 provision for depreciation 245 606
loans are estimated at
individual basis
2.1 Residential Real Estate - 3 268 - - 5 399 32 665 - 41 332
appointment
2.2 Other real estate - 104 199 - - - 20 079 - 124 278
2.3 Securities - - - - - - - -
2.4 Cash deposits - - - 1 343 - 215 - 1 558
2.5 Other assets - 57 313 - - 5 909 15 216 - 78 438
Valuations carried out under these regulations:
103
Order of the State Committee on Construction, Architecture and Housing Policy of Ukraine of 24. 05. 2001 "On Approval
instructions on how to conduct technical inventory of real property "
"Rules for determining the physical wear of houses, approved by the State Committee of Ukraine for the housing
Management Order number 52 dated July 2, 1993.
"Decision V the Kiev city council of V convocation of July 26, 2007 N 43/1877"
Collections UPVV
Law of Ukraine "On the evaluation of assets, property and professional assessment activities in Ukraine, Kyiv, July 12, 2001 N 2658 -
III;
Cabinet Resolution on approval of a national standard number 1, "General principles of property valuation and property rights", № 10 1440
September 2003;
Valuation methods and assumptions:
According to "Standards of Professional Appraiser" fair market value is defined as the most probable price at which the object
can be sold on the open competitive market in the presence of all conditions and fair agreement in the absence of atypical conditions
financing, given that the term of facilities should be prudent at this time-consuming.
According to generally accepted standards, the basic measurement approach market value is:
Spending (property) approach
An approach based on the capitalization of income
Comparative (unique selling)
Theoretical basis of the evaluation process is one set of evaluation principles. Within the last economic model imposed
behavior observed previously, people who were dealing with real estate. Most appropriate for an independent assessment on principles,
based on user submissions, including: utility, replacement mode.
Value. Real estate has value only if it is useful where a potential owner and may be
need to implement certain economic functions.
Replacement. This principle is based on the fact that the maximum value is determined by the lowest price value, which
may be purchased other property of equivalent utility.
Pending. This set the current value or income or other benefits that may be received in the future of ownership
property. The process of bringing the future of money to their present value is called discounting.
The principles underlying the three traditional approaches to value used in the evaluation process: 1) Comparative
sales analysis, 2) income, 3) cheaper (property).
The principle of comparative analysis of the sale - value of the assessment is determined by bringing the price of 1 m2 in the cost of analogue
1 m2 facility estimated by introducing corrective changes (parameters comparison).
An approach based on the capitalization of income based on determining the property value as a source of certain income (including
rental income) arising from the owner of commercial property using the estimated object.
104
Grade expensive (proprietary) approach based on determining the total cost of replacement (reproduction) of buildings and
buildings except for changes to the physical wear and all types of appropriate forms of depreciation with economic benefits of space
estimated location of the object.
Thus the vast number of real estate valued comparative method, if the property is residential, or method
capitalization of income if the property is commercial, where there are situations where no analogues, as sales and leases taken into account
costly method. In all cases, the interpretation of results applied step-down ratio from 0,15 to 0,3 which is given
likely decrease the value of property in the sale, through the deterioration of property, discounts on merchandise, and more.
In assessing any deposit evaluation procedures do not apply and the value of collateral equal to the amount of deposit.
In calculating the value of securities used different methods, mainly property approach and an approach based on
capitalization of income or discounted cash flows. It depends on what securities valued and that they support.
In calculating the cost of vehicles used unique selling method, if a new property, that the proposal
importers manufacturers and dealers with the lowest adjusted price. To evaluate the vehicles were in use,
used two methods - analogies and property, including both physical and functional deterioration, as the date of the
car as collateral, and in the period of the loan agreement, if there is information about the potential change in prices and range from the manufacturer.
The cost of finished goods is calculated by the method of analogues sale prices adjusted for manufacturer using decreasing
ratio from 0 to 0.5, which is likely to consider reducing the cost of finished product sales, through deterioration of property,
discounts on merchandise, and more.
Cost of goods in circulation is calculated by using the unique selling factor decreasing from 0,3 to 0,9 which
must take into account a possible reduction in the cost of goods in circulation in the sale, through the deterioration of property, discounts on merchandise, and more.
Vik. Shaforost NA .
461-82-80
Smirnov DA
461-82-77
105
Table 7.10. The fair value of collateral on past due loans but neznetsinenymy and individually impaired
loans are assessed on an individual basis, for 2008
(Thousand).
Loans Loans Loans Mortgage Consumer Other
given to bodies Loans physical
Line Item provided by Loans Loans Loans Total
government Legal persons -
operations physical physical physical
and local Banking enterprises
repo people Banking Banking
self-government yemtsyam
1 2 3 4 5 6 7 8 9 10
Fair value
1 providing for 76
overdue, but
neznetsinenymy credits:
1.1 Residential Real Estate - - - - - - - -
appointment
1.2 Other real estate - - - - - 76 - 76
1.3 Securities - - - - - - - -
1.4 Cash deposits - - - - - - - -
1.5 Other assets - - - - - - - -
Fair value
2 provision for depreciation 194 914
loans are estimated at
individual basis
2.1 Residential Real Estate - 3 554 - - 10 332 27 856 - 41 742
appointment
2.2 Other real estate - 107 263 - - - 14 600 - 121 863
2.3 Securities - - - - - - - -
2.4 Cash deposits - - - - - - - -
2.5 Other assets - 26 388 - - - 4 921 - 31 309
Vik. Shaforost NA .
461-82-80
106
Note 8. Securities held for sale
Data notes used for calculating the article "Securities
for-sale "line 5 Report" Balance ", line 6 tabl.29.6., 29.7" geographic risk "
partly for the calculation of the articles "Impairment of securities held for sale"
line 9 and "Gain on sale of securities held for sale" line 10
Income statement, and in part to calculate the articles "Net increase
(Decrease) in provisions for assets "line 3," Accrued income "line 4, and" Buying
securities held for sale "line 21 of the Report of Cash Flows.
Table 8.1 Securities held for sale
(Thousand).
Line Item 2009 2008
1 2 3 4
1 Debt securities: 180 185 -
1.1 Government Bonds - -
1.2 Local bonds - -
1.3 Corporate Bonds 180 185 -
1.4 Bill - -
2 Stocks and other securities 916 916
from ordinary income:
Fair value is determined
2.1 According to published quotations - -
securities on stock exchanges
2.2 Fair value is determined - -
to the accounting method
At cost (fair value
2.3 reliably determine which 916 916
impossible)
3 Provision for devaluation of securities - -
held for sale
4 Total securities available for sale 181 101 916
net reserves
The amount of accrued interest income not received is 1 697.2 thous.
Vik. Hladarenko SF
461-82-96
107
Table 8.2. Analysis of the credit quality of debt securities held for
sale in 2009
State Bonds Bonds
Line Item local Bill Total
Bonds enterprises
Loans
1 2 3 4 5 6 7
1 Current and neznetsineni: 180 185
1.1 Rated AAA - - - - -
1.2 Rated from AA-to AA - - - - -
1.3 Rated from A-to A - - - - -
1.4 Rated below A- - - - - -
1.5 Those that have no rating - - 180 185 - 180 185
Debt securities Conditions
2 maturity were - - - - -
reviewed in the reporting year
3 Total current and 180 185
neznetsinenyh
4 Overdue, but neznetsineni: -
4.1 With delay of payment by 31 - - - - -
days
4.2 With delay of payment from 32 to - - - - -
92 днів
4.3 With delay of payment from 93 to - - - - -
183 days
4.4 With delay of payment of 184 - - - - -
to 365 (366) days
4.5 With delay of payment more - - - - -
than 366 (367) days
Distressed debt securities
5 are evaluated on an individual -
basis:
5.1 With delay of payment by 31 - - - - -
days
5.2 With delay of payment from 32 to - - - - -
92 днів
5.3 With delay of payment of 1993 to - - - - -
183 days
5.4 With delay of payment of 184 - - - - -
to 365 (366) days
5.5 With delay of payment more - - - - -
than 366 (367) days
6 Other debt securities - - - - -
Provision for devaluation of
7 securities held in - - - - -
sale
Total debt securities
8 securities held in 180 185
sale net reserves
Vik. Hladarenko SF
461-82-96
108
Table 8.3. Changes in the portfolio securities held for trading
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
1 Carrying amount at 1 January 916 909
2 Result (revaluation / write-off) of -
revaluation to fair value
3 Accrued interest income 20 34 261 -
4 Interest received 32 564 -
5 Purchase of securities 911 903 7
6 Of securities for sale 733 415 -
7 Acquisition of subsidiaries - -
8 Transfer to disposal group assets - -
9 Disposal of subsidiaries - -
10 Translation differences on debt securities - -
securities
11 Influence of converting into the presentation - -
currency
Reporting as at
Book value
12 181 101 916
of 31 December
Vik. Hladarenko SF
461-82-96
Table 8.4. Major equity securities in bank portfolio
(Thousand).
Name View Country Fair value
Line
Company activity Registration 2009 2008
1 2 3 4 5 6
1 Arfa Handling Ukraine 16 16
"UkrKart data
By "First Activity
nationwide
3 associated Ukraine 900 900
bureau
with
credit
banks
Histories "
data
As of 31 December 2009 in the Bank there are no securities that were
used as collateral or for repo transactions.
Vik. Hladarenko SF
461-82-96
109
Note 9. Investment Property
Data Notes used for calculation Article "Investment
Real Estate line 6 Report "Balance", to calculate the item "Acquisition of investment
Real Estate line of 25 reports on cash flow.
Table 9.1. Investment property assessed by the method:
a) fair value:
Line Item 2009 2008
1 2 3 4
1 The fair value of investment property - -
beginning of year
2 Receipts 28 895 -
3 Capital investment for reconstruction - -
4 Receipts by the merger - -
5 Transfer to disposal group assets - -
6 Disposals - -
7 Transfer to a category of buildings which are occupied - -
owner
8 Influence of converting the currency reporting - -
9 Gains / losses from the revaluation to fair - -
value
10 Other - -
11 The fair value of investment property 28 895 -
at the end of December 31
During 2009 the Bank concluded an agreement not to obtain the operating
rental property held shares which could be classified and accounted for
as investment property. However, as of 31 December 2009 on the balance sheet
Bank is one object of investment property (commercial and trade
complex) at: city Dnipropetrovsk. Heroes of Stalingrad, will be. 31d
total area of 4080.2 sq.m.
First of all ownership in the Bank has received due to meet their
requirements for the credit agreement № 708 of 09.28.2007 at the expense of the mortgage is transferred
Property Ltd SITI'KOM "for-sale. Subsequently, the Bank for this property
delivered by Lessor, and according to the lease agreement for non-residential premises number 5692 -
Jur of 12.05.2009, the object passed in using temporary payable Ltd.
"Personal electronics.
Evaluation of the investment property on account of 4410 made by the Bank
fair value method, for which the initial determination as of 12 May 2009
year was held independent rating building professional expert (PP
"Manuscript") which has the appropriate professional qualifications and recent experience in assessing
similar objects in Ukraine.
The Bank evaluates investment property for each subsequent upon
initial recognition of the balance sheet date.
110
Table 9.2. Information on the amount of future minimum lease payments
non-cancellable operating leases where the lessor is a bank
Line Period of operating leases 2009 2008
1 2 3 4
1 Up to 1 year 1 234 -
2 1 to 5 years - -
3 Over 5 years - -
4 Total payments under operating leases 1 234 -
Vik. Paschenko OV
461-82-81
111
Note 10. Fixed and intangible assets
Data notes used for calculating the article "Fixed and intangible assets" line 9 Report "Balance" for
calculating the articles "depreciation" line 2, "Acquisition of fixed assets" line 23 and "Purchase of intangible assets" line 26 of the Report
cash flow, to calculate the articles "Depreciation of fixed assets" line 2 and "Amortization of software and
other intangible assets "line 6 Note 24" Administrative and other operating expenses "," Capital investment "line 14 and
"Depreciation deduction" line 15 tabl.28.3 notes "Reporting Segments.
Table 10. Fixed and intangible assets
(Thousand).
Line Name Land Buildings Machinery Trans - Instru - Other Other Incomplete None - Goodwill Total
Article plot facilities and and powerful You, devices, Main irreversible capital rialni
TX ap - expert inventory Tools material attachment assets
devices ing Tools (Furniture) assets fixed assets
and
nematerial -
No assets
1 2 3 4 5 6 7 8 9 10 11 11.1 12
1 Carrying
value at
early 2008 - 8005 1756 730 2949 599 1186 2649 154 - 18028
Year:
1.1 Initial
(overrated)
value - 8222 4661 1271 7538 1130 3494 2649 608 - 29573
1.2 Depreciation at
the beginning - (217) (2905) (541) (4589) (531) (2308) - (454) - (11545)
2 2008
Acquisition
concerned with
association - - - - - - - - - - -
Companies
3 Receipts - 1717 843 176 3518 958 4734 14108 71 - 26125
4 Improvement
main
means and - 428 207 9 72 - 1358 - - - 2074
improve
112
intangible
assets
5 Uploading - - - - - - - - - - -
6 Transfer to
Asset
retirement - - - - - - - - - - -
7 Disposals
(carrying
price) - - - 8 - - - 13915 - - 13923
7.1 Disposals
(initial
(overrated) - - 74 50 682 - - 13915 - - 14721
price)
7.2 Departure (wear) - - 74 42 682 - - - - - 798
8 Depreciation
deductions - (459) (874) (302) (1382) (238) (1735) - (51) - (5041)
9 Display
value losses
from reduced
utility
defined in
financial - - - - - - - - - - -
results
10 Restoration
usefulness
through financial - - - - - - - - - - -
Results
11 Reassessment - - - - - - - - - - -
11.1 Reassessment
original
value - - - - - - - - - - -
11.2 Reassessment
wear - - - - - - - - - - -
12 Impact
in terms - - - - - - - - - - -
113
presentation
currency
13 Reporting
Other - - - - - - - - - - -
14 Carrying
value at
end 2008
year (for
early 2009 - 9691 1932 605 5157 1319 5543 2842 174 - 27263
year):
14.1 Initial
(overrated
price) - 10367 5637 1406 10446 2088 9586 2842 679 - 43051
14.2 Depreciation at
the end
2008 (in - (676) (3705) (801) (5289) (769) (4043) - (505) - (15788)
early 2009
15 year)
Acquisition
concerned with
association - - - - - - - - - - -
Companies
16 Receipts - 6408 761 - 1659 282 1807 2527 - - 13444
17 Improvement
main
means and
improve
intangible - - 152 24 25 - 294 - - - 495
assets
18 Uploading - - - - - - - - - - -
19 Transfer to
Asset
retirement - - - - - - - - - - -
20 Disposals
(carrying
price) - - 28 - 58 6 361 4975 - - 5428
20.1 Disposals - - 78 1 175 37 458 4975 - - 5724
114
(initial
(overrated)
price)
20.2 Departure (wear) - - 50 1 117 31 97 - - - 296
21 Depreciation
deductions - (520) (1122) (271) (2269) (479) (2237) - (70) - (6968)
22 Display
value losses
from reduced
usefulness
through financial - - - - - - - - - - -
Results
23 Restoration
usefulness
through financial - - - - - - - - - - -
Results
24 Reassessment - - - - - - - - - - -
24.1 Reassessment
original
value - - - - - - - - - - -
24.2 Reassessment
wear - - - - - - - - - - -
25 Impact
in terms
presentation - - - - - - - - - - -
currency
26 Reporting
Other - - - - - - - - - - -
27 Carrying
value at
end of 2009 - 15579 1695 358 4514 1116 5046 394 104 - 28806
year
27.1 Initial
(overrated)
value - 16775 6472 1429 11955 2333 11229 394 679 - 51266
27.2 Depreciation at - (1196) (4777) (1071) (7441) (1217) (6183) - (575) - (22460)
the end
115
2009
Of the 27.1 column line 12:
value of fixed assets, for which there are statutory restrictions on the possession, use and disposal -
no;
value issued in the security of fixed assets and intangible assets - No
residual value of fixed assets which have not used (conservation, reconstruction, etc.) - no;
residual value of fixed assets removed from service on the sale - no;
Primeval (overrated) fully depreciated value of fixed assets - UAH 7465., including:
- Machinery and equipment 2894 thousand UAH.
- Vehicles 396 thousand UAH.
- Tools, instruments,
equipment (furniture) 3918 thousand UAH.
- Other fixed assets 257 thousand UAH.
value of intangible assets of which are the rights of property - no;
value created by intangible assets - no;
increase or decrease during the reporting period, arising from revaluations and the resulting losses
impairment recognized or reversed directly in equity - None.
Vik. Shmyhelska SV
461-87-31
116
Note 11. Other financial assets
Data notes used for calculating the article "Other financial assets"
Line 10 Report "Balance", line 8 tabl.29.6., 29.7. "The geographic risk," partly for
calculating the article "Provision for loans and other financial
Asset line 8 the income statement, and in part to calculate articles
"Net increase (decrease) in provisions for assets" line 3, "Accrued income"
line 4, and "Net (increase) / decrease in other financial assets" line 13 of the Report
cash flow.
Table 11.1. Other financial assets
(Thousand).
Line Item Note 2009 2008
1 2 3 4 5
1 Accounts receivable 741 -
paid out bank guarantees
2 Indebtedness for operational 226 -
lease
Accounts receivable
3 operations and credit 235 488
debit cards
4 Payments for foreign exchange - -
operations
Revaluation of financial
5 instruments accounted - -
for off balance sheet accounts
Derivative financial assets
6 designed to reflect - -
hedging
7 the right to use Funds are limited - -
8 Other 265 72
9 Provision for depreciation (766) (16)
10 Total other financial 701 544
assets minus reserve
Transcript article "Other":
Receivables on operations with international money transfer systems
funds - 144 thousand
Accrued interest on depository and registrar services - 57 ths.
Accounts receivable for the exchange of worn-out banknotes others. currency - 24 ths.
Accrued income on cash management services - 23 ths.
Receivables for settlement with the bank - 7 ths.
Accounts receivable on the deferred remuneration is guaranteed - 6 thousand UAH.
Accrued income by acquiring operations - 4 thousand.
Vik. Kolomiychenko NA
461-82-80
117
Table 11.2. The analysis of the provision for impairment of other financial assets in 2009
(Thousand).
Accounts Accounts Money
outstanding
arrears Operational Conversion funds from
Line Movement of operations Other Total
for paid limited
rent and credit operation
Bank right
debit
guarantees use
cards
reserves
1 2 3 4 5 6 7 8 9
1 Balance as at 1 - - - - - (16) (16)
January
(Increase) / decrease
2 provision for impairment - - - - - (752) (752)
7
year
3 Writing off bad - - - - - 2 2
debt
4 Transfer to assets - - - - - - -
disposal group
5 Disposal of subsidiaries - - - - - - -
Companies
6 Balance as at - - - - - (766) (766)
of 31 December
Vik. Milevsky AL
461-82-89
118
Table 3.11 Analysis of changes in provision for impairment of other financial assets in 2008
(Thousand).
Accounts Accounts Money
outstanding
arrears Operational Conversion funds from
Line Movement of operations Other Total
for paid limited
rent and credit operation
Bank right
debit
guarantees use
cards
reserves
1 2 3 4 5 6 7 8 9
1 Balance as at 1 (7) - - - - (16) (23)
January
(Increase) / decrease
2 provision for impairment 7 - - - - - 7
7
year
3 Writing off bad - - - - - - -
debt
4 Transfer to assets - - - - - - -
disposal group
5 Disposal of subsidiaries - - - - - - -
Companies
6 Balance as at - - - - - (16) (16)
of 31 December
Vik. Milevsky AL
461-82-89
119
Table 11.4. Analysis of credit as other financial receivables for 2009
(Thousand).
Accounts Accounts Money
arrears arrears
Operational Conversion funds from
Line Item by operations Other Total
limited
paid out rent with the credit operation
right
Bank and debit
use
guarantees cards
1 2 3 4 5 6 7 8 9
1 Current debt and 696
neznetsinena:
1.1 Legal entities - 226 - - - 60 286
1.2 Individuals - - 235 - - 175 410
Accounts receivable,
2 The terms of this year - - - - - - -
were reviewed
Total current
3 Receivables 696
and neznetsinenoyi:
4 Overdue, but 2
neznetsinena:
4.1 With delay of payment by 31 - - - - - 2 2
days
4.2 With delay of payment of 32 - - - - - - -
to 92 days
4.3 With delay of payment from 93 - - - - - - -
to 183 days
4.4 With delay of payment - - - - - - -
184 365 (366) days
120
4.5 With delay of payment - - - - - - -
more than 366 (367) days
5 Due to impaired 22
individual basis:
5.1 With delay of payment by 31 - - - - - - -
days
5.2 With delay of payment of 32 - - - - - 5 5
to 92 days
5.3 With delay of payment from 93 - - - - - 1 1
to 183 days
5.4 With delay of payment - - - - - 3 3
184 365 (366) days
5.5 With delay of payment - - - - - 13 13
more than 366 (367) days
6 Other accounts 741 - - - - 6 747
arrears
7 Provision for depreciation (741) - - - - (25) (766)
8 Total other financial 701
Receivables
VIC .. Kolomiychenko NA
461-82-80
121
Table 11.5. Analysis of credit as other financial receivables for 2008
(Thousand).
Accounts Accounts Money
arrears arrears
Operational Conversion funds from
Line Item by operations with Other Total
limited
paid out rent and credit operation
right
Bank debit
use
guarantees cards
1 2 3 4 5 6 7 8 9
1 Current debt and 542
neznetsinena:
1.1 Legal entities - - - - - 23 23
1.2 Individuals - - 488 - - 31 519
Accounts
2 Debt terms of - - - - - - -
during the year were
revised
Total current
3 Receivables 542
debt and
neznetsinenoyi:
4 Overdue, but 1
neznetsinena:
4.1 With delay of payment to - - - - - 1 1
31 days
4.2 With delay of payment - - - - - - -
32 to 92 days
4.3 With delay of payment - - - - - - -
93 to 183 days
122
4.4 With delay of payment - - - - - - -
184 365 (366) days
4.5 With delay of payment - - - - - - -
more than 366 (367) days
5 Debt impaired 17
on an individual basis:
5.1 With delay of payment to - - - - - - -
31 days
5.2 With delay of payment - - - - - 1 1
32 to 92 days
5.3 With delay of payment - - - - - - -
93 to 183 days
5.4 With delay of payment - - - - - 3 3
184 365 (366) days
5.5 With delay of payment - - - - - 13 13
more than 366 (367) days
6 Other accounts - - - - - - -
arrears
7 Provision for depreciation - - - - - (16) (16)
Total other financial
8 Receivables 544
debt
VIC. Kolomiychenko NA
461-82-80
123
Note 12. Other assets
Data notes used for calculating the article "Other assets" line 11
Report "Balance", and in part to calculate the articles "Net increase (decrease)
reserves by Asset line 3, "Calculated earnings " line 4, and "Net
(Increase) / decrease in other assets "line in 1914 Report on cash flow.
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
1 Receivables from 313 470
acquisition of assets
2 Prepaid 255 379
3 Stocks 71 384
values
4 Precious Metals - -
5 Precious Metals 2 486 6 757
Property transferred in
6 ownership of the bank as 403 6 122
mortgagee
7 Other 1505 1 054
8 Reserve (40) (63)
9 Total other assets 4 993 15 103
net reserves
In June 2009, according to the loan contract number 946 of 18/12/2007
Minutes of the meeting, and Board of "UPB" № 74 of 06.03.2009, in property
Bank as mortgagee transferred collateral Ltd. Ochakovskaya pyschevkusovaya
Factory as a production plant and equipment pischevkusovoy factory.
Bank policy on it - further implementation of the most favorable conditions.
Transcript article "Other":
531 thousand. - The amount of sales charges and deferred to them;
359 thousand. - The amount of debt on TIR "leader";
237 thousand. - The amount of rent in future periods;
183 thousand. - Purchase of commemorative coins;
95 thousand. - The amount of receivables for taxes and obligatory payments
Salary;
40 thousand. - The amount of the advance on support software tool;
36 thousand. - Subscribe to periodicals;
24 thousand. - Fee costs for the implementation of the mortgage.
Vik. Paschenko OV
461-82-81
124
Note 13. Due to banks
Data notes used for calculating the article "bank funds" line 13
Report "Balance", line 12 tabl.29.6., 29.7. "The geographic risk and partly to
calculating the articles "Accrued expenses" line 5, and "Net (increase) / decrease in
funds from other banks "line 15 reports on cash flow.
(Thousand).
Line Item 2009 2008
1 2 3 4
1 Correspondent accounts and 249 625 75 122
Overnight deposits from other banks
2 Deposits by other banks: - -
2.1 Short-term - -
2.2 Long-term - -
3 Contracts of sale and repurchase - -
of other banks
4 Loans: 457 416 264 677
4.1 Short-term 457 416 227 021
4.2 Long-term - 37 656
5 Overdue other borrowed funds -
banks
6 Total due to banks 707 041 339 799
The amount of accrued unpaid interest expense is 95 ths.
Vik. Kolomiychenko NO.
461-82-80
125
Note 14. Customer Accounts
Data notes used for calculating the article "Customer Accounts" line
1914 Report "Balance", line 13 tabl.29.6., 29.7. "The geographic risk" and partly for
calculating the articles "Accrued expenses" line 5, and "Net (increase) / decrease in
clients' funds "line in 1916 Report on cash flow.
Table 14.1. Customer Accounts
(Thousand).
Line Item 2009 2008
1 2 3 4
1 State and public - 7 117
Organization:
1.1 Current accounts - -
1.2 Deposit - 6 967
1.3 Term deposits - 150
2 Other legal entities 311 588 328 599
2.1 Current accounts 126 547 120 052
2.2 Deposit 10 051 22 235
2.3 Term deposits 174 990 186 312
3 Individuals: 680 759 667 539
3.1 Current and card accounts 33 455 24 676
3.2 Deposit 30 989 9 713
3.3 Term deposits 616 315 633 150
4 Total customer funds 992 347 1 003 255
The amount of unpaid accrued interest expenses of 13 262.3 thousand.
Vik. P'yatakov GV
461-82-80
126
Table 14.2. Distribution of clients by sector
(Thousand).
2009 2008
Line Of economic activity
sum % sum %
1 2 3 4 5 6
Agriculture,
1 hunting and Related
34 0.00 103 0.01
Services
2 Forestry and
associated with it services 10 197 1.03 12 435 1.24
3 Mining of coal, and lihnitu
peat - 0.00 - 0.00
4 Other fields of mining
Industry 552 0.06 341 0.03
5 Production of food
products, beverages 60 350 6.08 1 611 0.16
6 Textile industry - 0.00 3 0.00
Manufacture of wearing apparel;
7 production Fur
1 0.00 18 0.00
fur
Manufacture of wood and
8 production of
7 709 0.78 5 066 0.50
wood, except furniture
Manufacture of pulp,
9 Paper, cardboard and goods made
6 0.00 3 0.00
of
them
Publishing and polihrafichna
10 and reproduction
1 566 0.16 1 601 0.16
recorded media
Manufacture of coke products
11 refined petroleum and nuclear
4 0.00 128 0.01
materials
12 Of chemical production 1 454 0.15 149 0.01
13 Manufacture of rubber and
plastic products 18 0.00 53 0.01
14 Manufacture of other non-metallic
mineral products 20 0.00 20 0.00
15 Metallurgical production 13 0.00 8 0.00
16 Manufacture of fabricated
metal products 67 0.01 65 0.01
17 Manufacture of machinery and
Equipment 1 191 0.12 245 0.02
Production Office
18 equipment and electronic
19 0.00 43 0.00
computers
127
19 Manufacturing of electrical
Machinery and equipment 67 0.01 - 0,00
20 Manufacture of
radio, television and 1 0.00 - 0.00
communication medical,
Manufacture of
21 measurement tools
optical devices and 31 0.00 5 0.00
equipment, watches
22 Production of cars,
trailers and semitrailers 100 0.01 615 0.06
23 Manufacture
Vehicle 36 0.0 48 552 4.84
24 Manufacture of furniture;
manufacture of other products 117 0.01 354 0.04
25 Handling waste 1 229 0.13 5 097 0.51
Production and distribution
26 Electricity, gas, steam and
11 0.00 - 0.00
hot water
27 Collection, purification and
water distribution 22 0.00 - 0.00
28 Construction 4 197 0.42 14 046 1.40
Trade in automobiles and
29 motorcycles, their maintenance
maintenance and repair and 118 0.01 84 0.01
Retail
Wholesale i
30 intermediary in wholesale
68 821 6.94 129 697 12.93
Trade
Retail trade, repair
31 and household goods
12 396 1.25 4 749 0.47
personal use
32 Hotels and
restaurants 1 315 0.13 9 778 0.98
33 Ground-based
Transport 48 0.00 457 0.05
34 Additional transport services
and auxiliary operations 236 0.02 173 0.02
35 Activities address and 241 0.02 115 0.01
communication
Monetary and financial
36 1 077 0.11 25 327 2.53
mediation
37 Insurance 36 884 3.73 20 801 2.07
Ancillary services in
38 financial intermediation and
8 010 0.81 6 467 0.64
insurance
39 Real estate 61 026 6.15 11 832 1.18
40 Renting of machinery and 139 0.01 586 0.06
equipment;
128
rent and household products
personal consumption
41 Activity in the field
Information 4 196 0.42 1 943 0.19
42 Research and development 1 172 0.12 1 202 0.12
Activities in the fields of law,
43 Accounting
engineering, services 24 204 2.44 15 551 1.56
entrepreneurs
44 PUBLIC ADMINISTRATION 5 0.00 7 122 0.71
45 Education 32 0.00 18 0.00
46 Health and
Social Assistance 421 0.04 765 0.08
47 Sanitary services, cleaning
waste and disposal of waste 21 0.00 - 0.00
48 Public Activities
organizations 1 700 0.17 487 0.05
49 Activity in the sphere of culture
and 205 0.02 170 0.02
50 sport, recreation and entertainment
Providing services indyvidualnyh 4 0.00 30 0.00
51 Due to individuals 680 759 68.61 675 091 67.29
52 Due to the newly created
the subjects of management 266 0.03 249 0.02
53 Other 39 0.00 -
54 Total customer funds 992 347 100% 1 003 255 100%
The amount of guarantee deposits, which are providing loans to
businesses and individuals as at 31 December 2009 and December 31, 2008
is 328 418 thousand. and 225 183 thousand.
Vik. P'yatakov GV .
461-82-80
129
Note 15. Debt securities issued by the bank
Data notes used for calculating the article "Debt securities
issued by the bank "Line 15 Report" Balance ", line 14 tabl.29.6., 29.7. "Geographic
risk "and partly to calculate articles" Accrued expenses "line 5, and" Net
(Increase) / decrease in debt securities issued by the bank "line 17 of the Report
cash flow.
Table 15.1. Debt securities issued by the bank
(Thousand).
Line Item 2009 2008rik
1 2 3 4
1 Notes - -
2 Eurobonds - -
3 Bonds issued in the domestic - -
market
4 Certificates of deposit - -
5 Bonds 29 380 23 372
5.1 Bonds Series A 150 1 001
5.2 Bonds Series 150 18 683
5.3 Bonds Series C 6 431 1 018
5.4 Bonds Series D 22 649 2 670
6 Total 29 380 23 372
Redemption of bonds series A and B by June 27, 2010.
Redemption of bonds series C and D is November 25, 2010.
The amount of accrued unpaid interest expense is 602.5 thous.
Vik. Hladarenko SF
461-82-96
130
Table 15.2. The fair value of debt securities issued by Bank
(Thousand).
2009 2008
Line Name
Article fair carrying fair carrying
value value value value
1 2 3 4 5 6
1 Notes - -
2 Eurobonds - -
Bonds issued
3 domestic - -
market
4 Deposit - -
Certificates
5 Bonds 28 778 29 380 23 488 23 372
5.1 Bonds Series A 150 150 1 000 1 001
5.2 Bonds Series 150 150 18 800 18 683
5.3 Bonds Series C 6 303 6 431 1 018 1 018
5.4 Bonds Series D 22 175 22 649 2 670 2 670
6 Total 28 778 29 380 23 488 23 372
Vik. Hladarenko SF
461-82-96
131
Note 16. Provisions for obligations
Data Notes used for calculation Article "Reserves by
obligations "line in 1918 Report" Balance ", to calculate the article" Reserves for
obligations "line 11 the income statement, in part to calculate Article
"Net (increase) / decrease in provisions and deductions and other
commitment "line 19 Statement of cash funds, and for calculating the article" Provision
for obligations associated with credit "line 6 of Table 2.31 Note 31
"The potential liability of the bank.
Table 16.1. Provisions for obligations for 2009
(Thousand).
Commitment Tax
Line Movement of Notes credit Other Total
risks
nature
1 reserves
2 3 4 5 6 7
1 Balance at 1 January (941) - - (941)
(Increase) /
reduction reserve
2 (1 111) - - (1 111)
under obligation
credit
nature
3 Exchange differences 1 1
4 Balance at end 31 (2 051) - - (2 051)
December 31
Vik. Milevsky AL
461-82-89
Table 16.2. Provisions for obligations for 2008
(Thousand).
Commitment Tax
Line Movement of Notes credit Other Total
risks
nature
1 reserves
2 3 4 5 6 7
1 Balance at 1 January (587) - - (587)
(Increase) /
reduction reserve
2 (354) - - (354)
under obligation
credit
nature
3 Balance at end 31 (941) - - (941)
December 31
Vik. Milevsky AL
461-82-89
132
Note 17. Other financial liabilities
Data notes used for calculating the article "Other financial
commitment "line in 1919 Report" Balance ", and partly to calculate articles" Net
(Increase) / decrease in other financial liabilities "line 18 and" Net
(Increase) / decrease in provisions and charges and other liabilities "
Line 19 Report on cash flow.
Table 17.1. Other financial liabilities
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
1 Payables 1 725 391
2 Dividends payable 8 9
Accounts receivable
3 debit and credit 49 34
cards
4 Payments for foreign exchange - -
operations
Revaluation of financial
5 instruments accounted - -
for off balance sheet accounts
6 Other accrued liabilities 204 73
7 Total other financial 1 986 507
obligations
Transcript article "Other accrued liabilities"
Accrued operating expenses for the service - 39 ths.
Accrued costs of rental - 165 thousand
Vik. Kolomiychenko NA
461-82-80
133
Note 18. Other liabilities
Data notes used for calculating the article "Other liabilities"
line 20 reports "Balance", and partly to calculate articles "Net (increase) / decrease
in other financial liabilities "line 18 and" Net (increase) / decrease in
provisions and charges and other liabilities "line 19 Traffic Report
funds.
Table 18.1. Other liabilities
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
Accounts receivable
1 taxes and mandatory 928 44
payments other than income tax
Accounts receivable
2 settlement with 531 600
Bank
3 Accounts receivable 127 22
Services
4 Deferred income 86 61
5 Contributions to unregistered 9 500 -
capital
6 Other 1 780 -
7 Total 12 952 727
Transcript article "Other"
Transit bank transfer - 1780 thous.
Vik. Paschenko OV
461-82-81
134
Note 19. Capital
Data notes used for calculating the article "capital" line in 1922 Report "Balance", to calculate the article "Issue
ordinary shares "line 28 Statement of cash funds, and partly for calculating the article" public offering "line 5 Report on own
capital.
(Thousand).
Dividends
Number of Own shares that
Simple Issue Privileged redeemed directed
Line Item Total
shares from shareholders on
shares difference shares
Circulation (Members) increase
(Thousand statutory
ea.) capital
1 2 3 4 5 6 7 8 9
1 Balance at January 1, 2008 180 000 179 985 9 540 15 - - 189 540
2 Payments for shares 200 000 200 000 - - - - 200 000
and new release
Own shares
3 redeemed from shareholders - - - - - - -
(Members)
4 Sales of previously bought - - - - - - -
own shares
5 Revoked previously redeemed - - - - - - -
own shares
6 Dividends capitalized - - - - - - -
The balance of 31
7 December 2008 (balance of 1 380 000 379 985 9 540 15 - - 389 540
January 2009)
8 Payments for shares (shares, - - - - - - -
share) and new release
135
Own shares (shares) - - - - - - -
9 redeemed from shareholders
(Members)
10 Sales of previously bought - - - - - - -
own shares
11 Revoked previously redeemed - - - - - - -
own shares
12 Dividends capitalized - - - - - - -
13 The balance of 31 380 000 379 985 9 540 15 - - 389 540
December 2009
Number of shares, the revealed Release - 120 000 000.
All previous editions of 1911 total 380 million USD. paid in full.
An additional issue ordinary shares up 120 mln. revealed, but not fully paid.
As of December 31, 2009 paid for the shares twelfth issue 9500 000,00.
Nominal value per share - 1 hryvnia.
Vik. Antoniuk NM
568-52-36
136
Note 20. Reserve and other bank funds
Data notes used for calculating the article "Reserve and other bank funds" line in 1924 Report "Balance", and partly for
calculating the articles "The distribution of profits to reserve funds and other" lines 6 and 14, "revaluation of securities for sale" lines 10.1,10.2,
"Revaluation of fixed assets and intangible assets" line 11 of the Report of the equity. (Thousand).
Revaluation
long-term assets held for sale, and other assets, except for long-term assets
intended for sale and assets of Accu- Total
assets of disposal group
Name retirement
Line Other reserve
tioned
Article valuable Main Investmen valuabl Main Investmen course
and other
Tools Funds
paper in means operation differenc
t e or ts hedging transactions Bank
portfolio and e
ate hedging paper in Mother in
Bank Intangibl
associa- portfolio tural Associated
sale e
ated Bank assets -
The real
1 2 3 4
assets Company
5 6 sale7 8 nor
9 10 11 12 13
Balances at 1 Company
1 - - - - - 95 - - - 8 239 8 334
January 2008
2 Reassessment - - - - - - - - - - -
3 Realized - - - - - - - - - - -
revaluation
4 Exchange - - - - - - - - - - -
differences
Impact of tax
5 - - - - - - - - - - -
profit
Cash flow
general
6 reserves and funds - - - - - - - - - 2 479 2 479
bank
created
account
profit
Balance
of 31
7 - - - - - 95 - - - 10 718 10 813
December 2008
(Balance of 1
January 2009)
137
1 2 3 4 5 6 7 8 9 10 11 12 13
8 Reassessment - - - - 1 365 - - - - - 1 365
9 Realized - - - - (1 365) (87) - - - - (1 452)
revaluation
10 Exchange - - - - - - - - - - -
differences
Impact of tax
11 - - - - - - - - - - -
profit
Cash flow
general
12 reserves and funds - - - - - - - - - 21 926 21 926
bank
created
account
profit
Increase /
reduction
value
financial
13 Investment - - - - - - - - - - -
Due to
increase /
reduction
equity
Object
investment
Balance
14 of 31 - - - - - 8 - - - 32 644 32 652
December 2009
year
The composition of equity includes the results of revaluation of fixed assets taken in previous years, amounting to 8 ths.
According to the legislation of Ukraine to cover possible losses and other expenses of the bank profits formed
reserve fund as of 31.12.2009 is 31 890 thousand USD.
According to the Bank's Charter, the decision of shareholders meeting and in accordance with the accounting policies set up bank fund financial
stimulation of the bank employees as at 31.12.2009 amounts to 754 thousand. Payments from this fund in 2008-2009 is conducted.
Vik. T. Tarasenko
461-82-85
138
Note 21. Interest income and expense
Data notes are used to calculate articles "Net interest
Income / (Net interest expense) "line 1," Interest income "line of 1.1 and" Interest
costs "Entry 1.2 income statement and indicated in rows 1, 5 tabl.28.2
, 28.5 notes "Reporting Segments.
(Thousand).
Line Item 2009 2008
1 2 3 4
Interest income on:
1 Loans to 156 188 102 107
clients
2 Debt securities in 21 393 -
held for sale
3 Securities - -
to maturity
4 Due to banks 5 073 21 611
5 Chambers of debt securities - -
Other debt securities
accounted for
6 5 740 22 554
fair value
recognition of revaluation
in financial results
Receivables
7 repo - trading securities - -
Paper
8 Correspondent accounts in 6 46
other banks
9 Overnight deposits in other 95 -
banks
Interest income
10 impaired financial 129 359 98 676
Asset
11 Cash and cash 3 857 14 401
equivalents
12 Debt Financial - -
lease (rent)
13 Another - -
14 Total interest income 321 711 259 395
Interest expense on:
15 Term funds legal (25 786) (20 164)
people
16 Debt securities issued by the bank (5 846) (10 762)
139
1 2 3 4
17 Other attracted funds - -
18 Term deposits of individuals (87 466) (75 169)
19 Term deposits other (54 924) (35 402)
banks
20 Overnight deposits of other (20) -
banks
21 Current accounts (14 983) (14 497)
22 Correspondent accounts (8 652) (6 047)
23 Financial liabilities - -
lease (rent)
24 Another - -
25 Total interest expense (197 677) (162 041)
26 Net interest 124 034 97 354
income / (expenses)
Vik. Kolomiychenko NA
461-82-80
140
Note 22. Commission income and expenses
Data notes are used to calculate articles "Commission income"
line 2 and "commission fees" line 3 income statement and indicate in
lines 2, 6 tabl.28.2, 5.28 notes "Reporting Segments.
.
(Thousand).
Line Item 2009 2008
1 2 3 4
Commission income
Commission income on financial
instruments that are not accounted for
1 18 736 16 279
fair value recognition
through profit
Results:
1.1 Transactions 6 086 3 011
1.2 Cash services 4 967 6 570
1.3 Collection 1 226 1 393
1.4 Securities Transactions 464 936
1.5 Trust Management Operations 44 65
1.6 Guarantees issued (note 22) 667 800
1.7 Other 5 282 3 504
Commission income on financial
instruments carried at
2 483 3 890
fair value recognition
through profit
results
3 Total fee income 19 219 20 169
Commission expenses
Commission expenses for financial
instruments that are not accounted for
4 (3 848) (1 857)
fair value recognition
through profit
Results:
4.1 Transactions (3 496) (1 073)
4.2 Cash services (281) (533)
4.3 Collection (41) (34)
4.4 Securities Transactions (9) (14)
4.5 Other (21) (203)
Commission expenses for financial
instruments carried at
5 - -
fair value recognition
through profit
Results:
6 Total fee and commission expense (3 848) (1 857)
7 Net interest income / expenses 15 371 18 312
Vik. Kolomiychenko NA
461-82-80
141
Note 23. Other operating income
Data notes used for calculating the article "Other operating income"
line 12 the income statement.
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
1 Dividends - -
2 Income from renting 9 1 234 -
investment property
3 Income from sub - -
4 Negative goodwill is recognized as revenue - -
5 Income from disposal of fixed assets and - 2
intangible assets
6 Income from disposal of investment - -
Real Estate
7 Royalties - -
8 Other 1 002 1907
9 Total operating income 2 236 1909
Explanation r.8 Other
Fines and penalties received by the bank - 185 thous.
Income from securities registrar-180 thous.
Other operating income from services to customers - 157 thous.
Gains Custody of securities - 158 thous.
Revenues from the renting of safe deposit boxes - 128 thous.
Revenue from the difference between the appraised value of the mortgage and general obligation
Loan - 124 thous.
Indemnification - 19 ths.
Revenue from the sale of commemorative coins - 19 ths.
Costs and expenses of the bank - 17 ths.
Agent's commission of insurance services - 9 thousand.
Revenues from the sale of lottery tickets - 6 thousand UAH.
Vik. Paschenko OV
461-82-81
142
Note 24. Administrative and other operating expenses
Data notes used for calculating the article "Administrative and other
operating expenses "line 13 the income statement.
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
1 Personnel expenses (26 647) (25 687)
2 Depreciation of fixed assets 10 (6 899) (4 990)
3 Impairment of fixed - -
assets and intangible assets
4 Restoration of basic utility - -
and intangible assets
5 Impairment loss - -
goodwill
Amortization of Software
6 and other intangible 10 (69) (51)
assets
Expenditures on basic
7 assets and intangible assets (7 680) (5 145)
telecommunications and other
Maintenance services
8 Expenses for operational leasing (8 819) (6 315)
(Lease)
9 Other costs associated with major (412) (349)
means
10 Professional Services (801) (792)
11 Marketing and Advertising (3 169) (3 831)
12 Expenditures on health (2 495) (1 345)
13 Payment of taxes and other mandatory (4 126) (3 347)
payments other than income tax
Impairment of long-term -
14 assets held for sale (or -
disposal groups)
15 Other (1 990) (3 302)
Expenses for provisions for receivables
16 debt on economic 17 6
activity
17 Total administrative and other (63 090) (55 148)
operating costs
C tanom at end of December 31, 2009 on a balance sheet is
Real estate investment (commercial and shopping complex) to: Town
143
Dnipropetrovsk. Heroes of Stalingrad, will be. 31d, the total area of 4080.2 square meters, and
under a lease agreement for the number of non-residential premises Jur 5692 from 05.12.2009, the
Bank has transferred the object to the temporary use of paid Ltd. Personal Electronics.
During 2009, received income from the rental of the facility investment
estate in total 1234 thousand .. However, direct investment costs
arising from the existence of investment property, the Bank does not exist.
Explanation r.15 "Other":
346 thousand. - the costs of obtaining licenses and use rights
software;
239 thousand. - The cost of information and consulting services;
262 thousand. - Travel costs;
186 thousand. - Payment of services to register encumbrance of property expertise
fixed assets, placing vacancy announcements, and more.
183 thousand. - Expenses of the Bank for the visa service;
157 thousand. - Membership fees paid by the Bank;
153 thousand. - The cost of sponsorship and charity, incurred by the Bank;
100 thousand. - Bank charges for depository services;
85 thousand. - Publications in newspapers, the costs associated with activities in precious
Securities, etc.;
84 thousand. - Payment service credit rating upgrade;
61 thousand. - The cost of monitoring service quality;
53 thousand. - Costs finmonitorinhu;
43 thousand. - Entertainment expenses;
20 thousand. - Acquisition cost to the Bank;
10 thousand. - The amount of fines for violations of city planning;
Four thousand. - Other fines and penalties paid by the bank;
Four thousand. - The amount of fines paid VAT;
Vik. Paschenko OV
461-82-81
144
Note 25. Income tax expense
Data Notes used for calculation Articles "Deferred
tax asset "line 8," Deferred tax liabilities "line 17 of the Report
"Balance", and to calculate the articles "Profit / (loss) before tax" line 14,
"Income tax on income" line 15, "Income / (loss after tax"
line 16 and "Net income / (loss)" line 17 Income statement and
specified in lines 13-15 tabl.28.2, 5.28 notes "Reporting Segments.
.
Table 1.25. Expense income tax
(Thousand).
Line Item 2009 2008rik
1 2 3 4
1 Current income tax 4 224 10 873
2 Deferred income tax 2 159 (72)
3 Total 6 383 10 801
Table 25.2. Matching the amount of your income (loss) and the amount of tax
income (loss)
(Thousand).
Line Item 2009 2008
1 2 3 4
1 Profit before taxation 23 630 53 627
2 Total income tax rate is defined by 5 908 13 407
taxation
Adjustments to your income (loss)
Costs that are not included in the amount of deductible expenses
3 purpose of calculating income tax, but 3 592 1 106
recognized in the accounting (note that
specify) *
Costs are included in the amount of deductible expenses
4 purpose of calculating income tax, but not (620) (2 095)
recognized in the accounting (note that
exactly) **
Revenues subject to imposing a tax on
5 income, but not recognized (not included) to 638 1 408
Your income (loss) (note that it is) ***
Income not subject to taxation on
6 income, but are recognized in the accounting (5 714) (3 379)
(Specify what) ****
7 Depreciation charges on financial data 1 742 1 260
Accounting
8 Depreciation for tax purposes (1 322) (822)
Other amounts are not income and expenses, but
9 included in the tax base (correcting - (12)
errors, etc.) (specify what) *****
10 Total income tax (loss) 4 224 10 873
145
*
- costs included in gross in 2009
- costs for repairs, maintenance and protection of non-production assets
- costs of voluntary automobile insurance
- costs of voluntary insurance of leased fixed assets
- compensation for land tax
- hospitality
- Sponsorship and charity
- dues
- wage and non-resident charge for it
- deduction for reserves under standard debt
- allocations to provisions for receivables
- allocations to reserves for accrued income
**
- Interest expense on long-term securities
- Interest paid in redemption of their securities before the term of the memorandum
- settlement of bad debts
- repair costs of fixed assets within 10%
***
- amount of accrued interest in placing their own interest bonds after periods of
Memorandum
- free advertising materials distribution
- advance for the use of safe deposit boxes
****
- difference between interest income on securities in the trading portfolio
assessed and received
- result from trading in securities in the trading portfolio
- difference of the recognition of interest income from credit operations.
- .
Vik. Paschenko OV
461-82-81
146
Table 25.3. The tax consequences associated with the recognition of deferred tax assets and deferred tax liabilities
, 2009
(Thousand).
Transfer to
The list of deferred tax Balance at 1 Association assets Recognized Recognized Balance
Line
assets and deferred held financial own of 31
January Companies
tax liabilities For Sale results capital December
2009
2009
1 2 3 4 5 6 7 8
The difference between financial and
1 tax depreciation 367 - - 53 - 420
fixed assets
2 Expenses Entitlements 195 - - (109) - 86
software tools
3 Deferred income from 6 - - 0 - 6
rent deposit safes
The difference between revenues from
4 trade 0 - 3 560 - 3 560
securities and tax
Accounting between interest
The difference
5 expenses on securities 1 559 - - (1 906) - (347)
tax and accounting
Repair costs that
6 tax accounting - an increase 0 - - 15 - 15
value of fixed assets
financially - operating costs
Write-off in tax accounting
7 value decom 0 - - (54) - (54)
capital investments in leased
office
147
8 Provision for Standard 6 - - 34 - 40
arrears
9 Provisions on 0 - 3 069 3 069
accrued income
10 Provision for leave pay 150 - - (150) - 0
Repair costs that
11 tax accounting 10% in (325) - - 174 - (151)
Financial - increased cost
fixed assets
Write-off in tax accounting
12 fixed assets worth of 1 group 0 - - (1) - (1)
to 1700 USD
13 Costs of low-value cost to (123) - - 89 - (34)
USD 1000
14 Write-off in tax accounting 0 - - (33) - (33)
bad interest on the loan
The difference between interest
15 income on securities (1 652) - - (2 109) - (3 761)
tax and accounting
Charged but not received
16 interest income on credit 0 - - (4 964) - ( 4 964)
operations
17 Movement receivables (111) - - 173 - 62
18 Net deferred tax 72 - - (2 159) - (2 087)
asset / (liability)
19 Recognized deferred tax 2 283 - - - - 7 258
assets
20 The accepted deferred tax (2 211) - - - - (9 345)
commitment
148
Table 25.4. The tax consequences associated with the recognition of deferred tax assets and deferred tax liabilities
in 2008
(Thousand).
The list of deferred Transfer to
Balance at 1 Association long Recognized Recognized Balance
Line tax assets and
assets financial own of 31
deferred tax January Companies
held results capital December
obligations 2008
For Sale 2008
1 2 3 4 5 6 7 8
The difference between financial
1 and 111 - - 256 - 367
tax depreciation
fixed assets
Expenses Entitlements
2 143 - - 52 - 195
software tools
3 Deferred income from 9 - - (3) - 6
rent deposit safes
The difference between the cost of
4 equity 458 - - 1 101 - 1 559
accounts and tax
Accounting Standard
Provision for
5 174 - - (168) - 6
arrears
6 Provision for leave pay - - - 150 - 150
Repair costs that
tax accounting 10% in
7 (102) - - (223) - (325)
Financial - increased
value of fixed
of
8 Costs of low-value cost (80) - - (43) - (123)
1000 USD
149
The difference between income from
9 securities (961) - - (691) - (1 652)
accounts and tax
10 Accountingreceivables
Movement (70) - - (41) - (111)
11 Net deferred tax (318) - - - - 72
asset / (liability)
12 Recognized deferred 895 - - - - 2 283
tax asset
13 The accepted deferred tax (1213) - - - - (2 211)
commitment
Vik. Paschenko OV
461-82-81
150
Note 26. Profit / (loss) per ordinary and preferred share
Data Notes used for calculation Articles "Net
Profit / (loss) per common share "line 18 and" Adjusted net
Profit / (loss "per ordinary share" line in 1919 income statement.
Table 26.1. Basic and diluted earnings / (loss) per ordinary and
preferred share
Line Item Notes 2009 2008rik
1 2 3 4 5
Profit / (loss) that belongs to
1 shareholders - holders of ordinary Bank 17 246 42 824
shares
Profit / (loss) that belongs to
2 shareholders - owners 1 2
preferred shares of bank
Dod.2 "Report
3 Profit / (loss) for year financial 17 247 42 826
results ", 28
4 The average number of ordinary shares 19 379 985 336 269
in circulation (thousand.)
Average
5 preferred shares outstanding (thousands 19 15 15
ea.)
Dod.2 "Report
6 Net profit / (loss) on ordinary financial 0,05 0,13
share results "
Adjusted net Dod.2 "Report
7 Profit / (loss) per ordinary financial 0,05 0,13
Results
share
Net profit / (loss) per Dod.2 "Report
8 financial 0,05 0,13
preferred share Results
Adjusted net Dod.2 "Report
9 Profit / (loss) per financial 0,05 0,13
Results
preferred share
Vik. Kolomiychenko NA
461-82-80
Antoniuk NM
568-52-36
151
Table 26.2. Calculation of profit / (loss) that belongs to shareholders - owners
ordinary and preferred shares of banks
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
1 Ordinary shares of the bank, 28 17 246 42 824
1.1 including Ltd. UIFA " 16 891 42 641
1.2 Other legal entities 351 174
1.3 Other individuals 4 9
2 Preference shares of banks, 28 1 2
including
2.1 Ltd. UIFA " 0,4 1
2.2 Other legal entities 0 0
2.3 Other individuals 0,6 1
Vik. Kolomiychenko NA
461-82-80
Antoniuk NM
568-52-36
152
Note 27. Dividends
Data notes used for calculating the article "Dividends paid and
Other payments "line in 1929 Report on cash flow and" Dividends, which adopted
decision to pay "line 7 Report on equity.
(Thousand).
2009 2008
Line Name by by by By
Article simple privileged simple privileged
shares shares shares shares
1 2 3 4 5 6
1 Balance as at 9 - 6 -
January 1
Dividends, which
2 decision - - 13 300 -
concerning payment
year
3 Dividends paid 1 - 13 297 -
year
4 Balance as at 8 - 9 -
of 31 December
Dividends per share
which made
5 - - 0,03 0,03
decisions
payments for
year (USD)
Vik. Kolomiychenko NA
461-82-80
Antoniuk NM
568-52-36
153
Note 28. Reporting Segments
Table 28.1. Information on the main business segments in the segment of contractors in 2009
(Thousand).
Name of reportable segments
Line Name Service Withdrawal Total
Service Interbank Investment
Article Corporate
Individuals activity activity
clients
1 2 3 4 5 6 7 8
Income from
1 External 274 463 30 317 13 036 16 468 - 334 284
contractors
2 Revenues from other 66 858 147 562 268 925 34 352 (517 697) -
segments
3 Total income 341 321 177 879 281 961 50 820 (517 697) 334 284
154
Table 28.2. Information concerning the nature of income and expenditures reportable segments for 2009
(Thousand).
Name of reportable segments
Strin Item Service Servicing Withdrawal Total
Interbank Investment
Corporate individual
activity activity
g clients s
1 2 3 4 5 1 2 3
could Interest income
1 328 337 171 630 277 957 61 485 (517 698) 321 711
k
2 Commission income 12 632 4 012 2 111 464 - 19 219
1
3 Other income 353 2 237 1 893 (11 129) - (6 646)
4 Total income 341 322 177 879 281 961 50 820 (517 698) 334 284
5 Interest expense (272 082) (132 298) (261 272) (49 723) 517 698 (197 677)
6 Commission expenses (2 999) (840) - (9) - (3 848)
2
7 Other expenses (46 428) (35 518) (19 158) (1 057) - (102 161)
8 Total expenses (321 509) (168 656) (280 430) (50 789) 517 698 (303 686)
9 Segment Result 19 813 9 223 1 531 31 - 30 598
10 Retained earnings - - - - - -
3
11 Unallocated costs - - - - - (6 968)
Share in the financial result
12 associate after - - - - - -
taxation
13 Profit / (loss) before taxation - - - - - 23 630
14 Expenses for income tax - - - - - (6 383)
15 Profit / (loss) - - - - - 17 247
1
Other income includes the results from trading, and nonoperating inishi operating income.
2
Other costs include administrative and other operating expenses, modest expenditures to minimize and restore utility assets.
3
Unallocated costs consist of expenses for depreciation.
155
Table 3.28. Assets and liabilities of reportable segments for 2009
(Thousand).
Name of reportable segments
Line Item Service Service Interbank Investment Withdrawal Total
Corporate
Individuals activity activity
clients
1 2 3 4 5 6 7 8
1 Long-term assets held for - - - - - -
sale (or disposal groups)
2 Other assets segments 1 327 494 139 816 548 747 192 213 - 2 208 270
3 Total assets of segment 1 327 494 139 816 548 747 192 213 - 2 208 270
4 Investments in associates - - - - - -
5 Current and deferred tax assets - - - - - -
4
6 Other unallocated assets - - - - - -
7 Total assets 1 327 494 139 816 548 747 192 213 - 2 208 270
Liabilities directly associated with
8 long-term assets held - - - - - -
for sale (or disposal groups)
9 Other liabilities segments 314 487 683 205 709 184 29 381 - 1 736 257
10 Total liabilities segments 314 487 683 205 709 184 29 381 - 1 736 257
11 Current and deferred tax - - - - - 2 087
commitment
12 Other unallocated liabilities - - - - - 9 500
13 Total liabilities 314 487 683 205 709 184 29 381 - 1 747 844
Other Segments article
14 Capital investments 4 482 4 481 4 481 - - 13 444
4
Unallocated assets consist of fixed assets and intangible assets.
156
Name of reportable segments
Line Item Service Service Interbank Investment Withdrawal Total
Corporate
Individuals activity activity
clients
1 2 3 4 5 6 7 8
15 Depreciation charges - - - - - (6 968)
16 Impairment shown in (31 654) (16 346) - (48 000)
financial results
17 Impairment recognized - - - - - -
directly in equity
18 Recovery utility, which is reflected in - - 1 977 - - 1 977
financial results
19 Other non-cash income / (expenses) - - - - - -
157
Table 4.28. Information on the main business segments in the segment of contractors in 2008
(Thousand).
Name of reportable segments
Line Name Service Withdrawal Total
Service Interbank Investment
Article Corporate
Individuals activity activity
clients
1 2 3 4 5 6 7 8
Income from
1 External 187 646 34 271 60 384 25 532 - 307 833
contractors
2 Revenues from other 45 862 13 061 145 818 6 424 (211 165) -
segments
3 Total income 233 508 47 332 206 202 31 956 (211 165) 307 833
158
Table 5.28. Information concerning the nature of income and expenditures reportable segments for 2008
(Thousand).
Name of reportable segments
Strin Item Service Servicing Withdrawal Total
Interbank Investment
Corporate ing physical
ca activities activity
g clients people
1 2 3 4 5 1 2 3
could Interest income
1 218 696 41 010 181 875 28 978 (211 165) 259 395
k
2 Commission income 13 248 3 876 2 109 936 - 20 169
5
3 Other income 1 563 2 445 22 218 2 043 - 28 269
4 Total income 233 507 47 332 206 202 31 957 (211 165) 307 833
5 Interest expense (182 406) (1 504) (161 885) (27 411) 211 165 (162 041)
6 Commission expenses - - (1 843) (14) - (1 857)
6
7 Other expenses (26 348) (37 946) (20 164) (809) - (85 267)
8 Total expenses (208 754) (39 450) (183 892) (28 234) 211 165 (249 165)
9 Segment Result 24 753 7 882 22 310 3 723 - 58 668
10 Retained earnings - - - - - -
7
11 Unallocated costs - - - - - (5 041)
Share in the financial result
12 associate after - - - - - -
taxation
13 Profit / (loss) before taxation - - - - - 53 627
14 Expenses for income tax - - - - - (10 801)
15 Profit / (loss) - - - - - 42 826
5
Other income includes the results from trading, and nonoperating inishi operating income.
6
Other costs include administrative and other operating expenses, modest expenditures to minimize and restore utility assets.
7
Unallocated costs consist of expenses for depreciation.
159
Table 28.6. Assets and liabilities of reportable segments for 2008
(Thousand).
Name of reportable segments
Line Item Service Service Interbank Investment Withdrawal Total
Corporate
Individuals activity activity
clients
1 2 3 4 5 6 7 8
1 Long-term assets held for - - - - - -
sale (or disposal groups)
2 Other assets segments 1 142 416 191 040 255 451 196 950 - 1 785 857
3 Total assets of segment 1 142 416 191 040 255 451 196 950 - 1 785 857
4 Investments in associates - - - - - -
5 Current and deferred tax assets 72 - - - - 72
8
6 Other unallocated assets - - - - - 27 263
7 Total assets 1 142 488 191 040 255 451 196 950 - 1 813 192
Liabilities directly
8 associated with long-term assets - - - - - -
held for sale (or groups
disposal)
9 Other liabilities segments 335 539 669 643 340 046 23 372 - 1 368 600
10 Total liabilities segments 335 539 669 643 340 046 23 372 - 1 368 600
11 Current and deferred tax - - - - - 1 412
commitment
12 Other unallocated liabilities - - - - - -
13 Total liabilities 335 539 669 643 340 046 23 372 - 1 370 012
Other Segments article
14 Capital investments - - - - - 26 125
15 Depreciation charges - - - - - (5 041)
8
Unallocated assets consist of fixed assets and intangible assets.
160
Name of reportable segments
Line Item Service Service Interbank Investment Withdrawal Total
Corporate
Individuals activity activity
clients
1 2 3 4 5 6 7 8
Impairment that
16 shown in the financial (15 569) (18 433) (1 151) (35 153)
results
Impairment recognized
17 directly in their own - - - - - -
capital
Recovery utility, which
18 shown in the financial - - - - - -
results
19 Other non-cash income / (expenses) - - - - - -
Vik. Milevsky AL
461-82-89
161
Note 29. Financial Risk Management
Credit risk
Credit risk - is the extent of possible deviations from the goals of the Bank arising
because of failure of a party committed to fulfill the terms of any
financial agreement with the Bank or otherwise commit.
The main objective of credit risk management policies, compliance with
determined by the Supervisory Board of the Bank's tolerance for credit risk.
The process of managing credit risk is that by using
Conclusions banking units, Credit Committee approves limits for operations and
shall decide on the feasibility of providing credit.
The process of determining the credit risk assessment is divided into UPB
individual and portfolio credit risk. Source individual
Credit risk is the single counterparty bank - borrower, the borrower, the issuer
of securities. Rating individual credit risk provides assessment
creditworthiness, ie its ability to timely and fully perform and
undertake. Separately, the optimal set limits
with this counterparty of active operations.
In its activity Bank uses following Methods for evaluation
individual credit risk:
method ratings - the defined calculation methodology rating
individual counterparties and the establishment of information on creditworthiness and
overall financial condition;
Scoring - a system for establishing the creditworthiness of individuals and
individual entrepreneurs. The system allows maximum performance
speed and accuracy to establish the real financial condition of the counterparty;
The source of portfolio credit risk is the total debt to
Bank operations in which the inherent credit risk. So for each year are determined
target structure of loans and their optimal allocation, the main target
structures are:
structure by sector;
structure by currency;
structure at the amount of credit;
Businesses in class contractors;
maturity structure;
The main objective of portfolio credit risk diversification
loans, ie reduce their concentration in the target structures.
In 2009, the violations of the standards of credit risk
were detected, as at 31.12.2009 ratios take the following credit risk
value:
H7 Maximum credit risk per
contractor - 22.74%;
H8 norm of large credit risks - 268.03%;
H9 Maximum credits, guarantees and warranties
granted to an insider - 3,95%;
N10 standard maximum aggregate amount of credits, guarantees and
sureties granted to insiders - 5.19%.
162
Market risk
Market risk - is the extent of possible deviations from the goals of the Bank arising
due to adverse fluctuations in the value of securities and foreign currencies according to the
instruments that are in the trade portfolio.
The main goal of market risk management policy - to minimize losses
associated with fluctuations in the value of securities and foreign currencies according to the
instruments that are in the trade portfolio.
Market risk management policy aims to improve
the Bank's market crisis, warning about tools that are in shopping
portfolios.
The source of market risk is the adverse dynamics of exchange rates and prices
interest rate instruments. Therefore, to assess market risk using
VaR-methodology, which has included the determination of possible losses from a given
probability, but prices can vary in the opposite direction, then the Bank
receive unplanned income.
Currency risk
Currency risk - is the extent of possible deviations from the goals of the Bank arising
due to adverse fluctuations in foreign currencies and precious metals prices.
Special attention is paid to the UPB to currency risk arising as a result
adverse changes in rates. The source of risk is a balance discrepancy and
off-balance sheet claims and obligations denominated in one currency.
In recent years, UPB consistently comply with the open
currency position of the National Bank of Ukraine. The system of internal
limits enables comprehensive approach to manage the largest foreign exchange risk
with the Bank adopted risk management principles.
The table below analyzes the Bank's sensitivity to changes
official exchange rate to foreign currencies. The level of sensitivity used by the Bank
in the preparation of internal reports for key management personnel of the Bank's
impact of currency risk. In the sensitivity analysis included the amount available at the end of the year.
163
Table 29.1. Analysis of currency risk
(Thousand).
As of 12/31/2009 As of 31/12/2008
The least derivati derivati
Line Monet- monetary Monet- monetary
ing ves net ves Net
currency Packag liabilities Packag commit-
financi position financi position
ing cutting ing torque
al al
assets assets
ance ance
1 2 3 4 instru-
5 6 7 8 instru-
9 10
ments ments
1 U.S. 407 368 432 650 – (25 282) 356 360 349 565 - 6 795
U.S.
2 Euro 192 244 212 595 – (20 351) 102 676.1 104 826.1 - 2 150
3 Pounds 173 0.0 – 173 44.6 - - 44.6
Sterling
4 Other 4 169 10 080 – (5 911) 9 583.4 7 851.7 - 1 731.6
5 Total 603 954 655 325 – (51 371) 468 664.1 462 242.8 - 6 421.3
Table 29.2. Change in financial result and equity as a result
possible changes in exchange rates that are installed on the reporting date, provided that all other
characteristic variables remain fixed
(Thousand).
As of 12/31/2009 As of 31/12/2008
Line Item impact impact effect on the impact on
profit own income / own
(Loss) capital (Loss) capital
1 2 3 4 5 6
Strengthening of U.S. $ 5 (1 264) (1 264) 340 340
1
%
Weakening U.S. dollar 1 264 1 264 (340) (340)
2
5%
3 Strengthening the euro by 5% (1 018) (1 018) (107.5) (107.5)
Weakening euro 4 5% 1 018 1 018 107.5 107.5
5 Strengthening pound 9 9 2 2
5%
6 Weakening pound (9) (9) (2) (2)
£ 5%
Strengthening of other currencies on
7 (296) (296) 87 87
5%
8 Weakening other 296 296 (87) (87)
rates by 5%
164
Table 29.3. Change in financial result and equity as a result
possible changes in the exchange rate is set as the weighted average exchange
course, provided that all other variables remain fixed characteristics
(Thousand).
Average Average
exchange rate in 2009 exchange rate in 2008
Line Item
impact impact impact impact
profit own profit own
(Loss) capital (Loss) capital
1 2 3 4 5 6
1 Strengthening U.S. dollar (1 233) (1 233) 232 232
5%
2 Weakening U.S. dollar 1 233 1 233 (232) (232)
5%
3 Strengthening of the euro by (966) (966) (76) (76)
4 5%
Weakening euro 5% 966 966 76 76
5 Strengthening pound 8 8 2 2
£ 5%
6 Weakening pound (8) (8) (2) (2)
£ 5%
7 Strengthening of other (53) (53) 74 74
currencies on
5%
Weakening other
8 53 53 (74) (74)
rates by 5%
In the above table shows the effect of changes based on
main assumptions (strengthening / weakening of a currency) while other factors
remain unchanged, including the situation in the financial-economic and
political life and in the world and more. In fact there is a connection between assumptions and
other factors. Also note that the sensitivity of a nonlinear character,
therefore should not be carried out interpolation or extrapolation of the results.
When identified a possible change of the financial result and equity in
result of possible changes in exchange rates, the Bank focuses on the net
currency position and also on volatility each currency (Possible
strengthening / weakening of a single currency. Given the impact of global economic crisis
Ukraine's economy can be assumed that in 2010 the devaluation of national currency
continue.
The sensitivity analysis does not consider that the Bank actively manages the assets and liabilities. In
addition to the Bank's financial condition may vary depending on changes
on the market.
165
Interest Rate Risk
Interest Rate Risk - is the extent of possible deviations from the objectives of the Bank, which
arising from adverse changes in interest rates.
In case of adverse fluctuations in market interest rates The Bank is exposed to
interest rate risk, which is the source of imbalance of assets and liabilities sensitive to changes
interest rates. To reduce interest rate risk using their own
approaches to control rate risk. Then recommendations are provided
core committee (ALCO) for further consideration.
Table 29.4. General analysis of interest rate risk
(Thousand).
On
Line Item demand From 1 From 6 More Nemone- Total
and year Packag
less than to to ing
1 2 1 3 6 4 12 5 6 7 8
2008
month month months.
s. s.
1 Total financial assets 399 911,8 181 442,0 661 565,5 526 730,0 93 428,7 1 863 078,0
2 Total financial 399 809,7 150 495,4 631 245,1 184 876,0 2 584,7 1 369 010,9
obligations
Net interest rate gap for
3 rates of 31 102,1 30 946,6 30 320,4 341 854,0 90 844,0 494 067,1
December 2008
2009
4 Total financial assets 689 914 619 646 517 120 329 734 123 672 2 280 085
5 Total financial 797 959 398 405 412 028 120 376 16 939 1 745 707
obligations
Net interest rate gap for
6 rates of 31 (108 045) 221 241 105 092 209 358 106 733 534 378
December 2009
The table below shows the sensitivity to interest rate risk,
namely the impact on profit before tax. Given the impact of global economic
crisis on Ukraine can be assumed that the increase in interest rates is more
probable for its reduction. The extent of these changes is determined and displayed leadership
Reports on risk management provided by key management personnel
Bank.
Effect on profit before tax
(Thousand).
As of 12/31/2009 As of 31/12/2008
Line Item Interest Interest Interest Interest
rate
rate -2% rate of 3% rate -1%
+3%
1 2 3 4 5 6
1 Total financial assets 64 692 (43 128) 53 088 (17 696)
2 Total liabilities (51 863) 34 575 (40 992) 13 664
3 Effect on profit before 12 829 (8 553) 12 096 (4032)
taxation
166
Table 29.5. Monitoring of interest rates on financial instruments
(%)
As of 12/31/2009 As of 31/12/2008
Line Item Dollar Mane Mane-Dollar
other euro other euro
ing U.S. ing U.S.
1 2 3 4 5 6 7 8 9 10
Assets 23,7 10,1 13,0 16,0 20,9 13,8 14,1 8,5
Cash and cash
1 3,1 – 0,01 – - - - -
Equivalents
2 Trading debt securities – – – – - - - -
Other debt securities
accounted for
fair value
3 8,0 – – – 16,0 - - -
recognition of
through profit
results
4 Due to banks 10.0 1,7 0,01 – 13,9 8,5 - -
Loans and receivables
5 24,0 15,7 15,03 16,0 21,9 15,2 14,6 8,5
clients
Debt securities in
6 13,5 – – – - - - -
held for sale
Debt securities in
7 Bank portfolio – – – – - - - -
maturity
8 Other assets – – – – - - - -
Transfer to
9 long-term assets – – – – - - - -
held for sale
Commitment 17,6 9,9 7,9 4,9 15,6 10,7 11,2 2,8
10 Due to banks 16,4 2,3 5,1 – 14,2 8,3 14,5 -
11 Due to customers: 17,9 12,4 11,5 4,9 16,2 11,2 10,6 2,8
11.1 Current Account 6,3 5,5 1,3 0,1 9,7 1,9 7,6 -
11.2 Term deposits 20,6 13,2 12,0 4,9 17,9 12,8 10,9 2,8
Debt securities
12 19,8 – – – 16,25 - - -
issued by the bank
13 Other borrowed funds – – – – - - - -
14 Other liabilities – – – – - - - -
15 Subordinated debt – – – – - - - -
Liabilities connected with
long-term assets
16 held for – – – – - - - -
sale (or groups
disposal)
167
Most credit agreements of the Bank and other financial assets and liabilities for
which accrued interest, have a fixed interest rate and terms of the agreement
provide the ability to change interest rate lender. The Bank
monitoring the Bank's interest margin and believes that the Bank does not bear a substantial risk of
interest rate relative to cash flows.
Other price risk
Price Risk - a risk that the value of a financial instrument will
change due to adverse price fluctuations of securities in the portfolio of the Bank and
also prices of other instruments and exchange commodities, except where such fluctuation
caused by changes in exchange rates or interest rates.
Value of financial instruments in the portfolio of the Bank does not depend on fluctuations
exchange rates and interest rates and is unaffected by adverse fluctuations
prices of securities in the portfolio of the Bank, because price risk is minimized.
Treasury controls the price risk by monitoring market prices.
168
Geographic risk
Table 29.6. Analysis of the geographical concentration of financial assets and liabilities
2009
(Thousand).
Line Item Ukraine OECD Other Total
country
1 2 3 4 5 6
ASSETS
1 Cash and cash equivalents 306 382 – – 306 382
2 Trading securities – – – –
Other financial assets carried at
3 fair value with recognition of 10 535 – – 10 535
through profit or loss
4 Due to banks 202 663 16 310 116 219 089
5 Loans to customers 1 426 095 – – 1 426 095
6 Securities held for trading 181 101 – – 181 101
7 Securities held to maturity – – – –
8 Other financial assets 701 – – 701
9 Total financial assets 2 127 477 16 310 116 2 143 903
9
10 Non-financial assets 64 367 – – 64 367
11 Total assets 2 191 844 16 310 116 2 208 270
LIABILITIES
12 Due to banks 704 588 – 2 453 707 041
13 Customer Accounts 963 053 27 502 1 792 992 347
14 Debt securities issued by the bank 29 380 – – 29 380
15 Other borrowed funds – – – –
16 Other financial liabilities 1 986 – – 1 986
17 Subordinated debt – – – –
18 Total liabilities 1 699 007 27 502 4 245 1 730 754
10
19 Non-financial liabilities 17 090 – – 17 090
20 Total liabilities 1 716 097 27 502 4 245 1 747 844
21 Net balance sheet position 475 747 (11 192) (4 129) 460 426
9
This article financial statements include: deferred tax assets, fixed assets and intangible assets, and
other assets
10
This article includes: commitment to the current income tax, deferred tax liabilities, reserves
for obligations and other commitments.
169
Table 29.7. Analysis of the geographical concentration of financial assets and liabilities
2008
(Thousand).
Line Item Ukraine OECD Other Total
country
1 2 3 4 5 6
ASSETS
1 Cash and cash equivalents 112 129 – – 112 129
2 Trading securities – – – –
Other financial assets are accounted
3 at fair value recognition 196 034 – – 196 034
through profit
results
4 Due to banks 123 029 12 154 634 135 817
5 Loans to customers 1 325 314 – – 1 325 314
6 Securities held for trading 916 – – 916
7 Securities held-to- – – – –
maturity
8 Other financial assets 544 – – 544
9 Total financial assets 1 757 966 12 154 634 1 770 754
10 Non-financial assets 42 438 – – 42 438
11 Total assets 1 800 404 12 154 634 1 813 192
LIABILITIES
12 Due to banks 333 066 – 6 733 339 799
13 Customer Accounts 952 615 49 185 1 455 1 003 255
14 Debt securities issued by the bank 23 372 – – 23 372
15 Other borrowed funds – – – –
16 Other financial liabilities 507 – – 507
17 Subordinated debt – – – –
18 Total liabilities 1 309 560 49 185 8 188 1 366 933
19 Non-financial liabilities 3 080 – – 3 080
20 Total liabilities 1 312 640 49 185 8 188 1 370 013
21 Net balance sheet position 487 764 (37 031) (7 554) 443 179
It should be noted that the concentration of assets and liabilities
focused on Ukraine, namely 99,3% 98,2% of assets and liabilities in 2009 and in accordance
99,3% and 95,7% in 2008, is due to the fact that almost all operations conducted by Bank
Ukraine.
170
Liquidity risk
Liquidity risk - is the extent of possible deviations from the goals of the Bank arising
through the Bank's failure to fulfill its obligations in due time, would not tolerate
thus unacceptable losses.
Bank's policy on liquidity risk management aimed at optimizing
liquidity risk and return completed Bank operations. Department
risk management to develop recommendations for optimization of assets and
liabilities.
The main objectives of liquidity risk management is a balance of terms
borrowing and the allocation of resources, and building the optimal structure of bank balance
between revenue and liquid assets.
The process of liquidity risk management is co-ordinated action
departments and agencies of the Bank aimed at managing unscheduled
outflows, change of financing and execution of off-balance
obligations.
In assessing liquidity risk apply methods of quantitative assessment
risk, namely:
Rating volatility liquid assets;
Coefficient analysis of liquidity;
The method of nonparametric statistics;
GAP - Liquidity Analysis (construction payment calendar);
VaR - Methodology;
Stress - tests.
and qualitative methods:
Analysis of liquidity of financial markets;
The method of analogy and comparison to other banks comparative group.
171
Table 29.8. Analysis of financial liabilities by maturity, 2009
(Thousand).
On From
Line Item request 1 to 3 From 3 Over Total
and less months. 12 5 років
1 to months.
1 2 month.
3 4 12 5 to 56 7 8
1 Due to banks 498 041 132 000 months. years
77 000 - - 707 041
2 Due to customers:
2.1 Individuals 164 684 124 279 381 255 10 541 - 680 759
2.2 Other 135 234 1 855 64 663 109 836 - 311 588
3 Debt securities - - 29 380 - - 29 380
issued by the bank
4 Other borrowed funds 851 - - - - 851
5 Subordinated debt - - - - - -
6 Other financial 13 753 30 2 293 12 - 16 088
commitment
Postavochni forward
7 contracts, general - - - - - -
sum
8 Postavochni forward - - - - - -
contracts, net
9 Financial guarantees 106 374 4 868 490 - 5 838
10 Other liabilities 2 705 15 395 3 876 9 879 6 566 38 421
credit character
Total potential
11 future payments for - - 6 169 - - 6 169
financial
obligations
Vik. P'yatakov GV
461-82-80
172
Table 9.29 Analysis of financial liabilities maturing in 2008.
(Thousand).
On From
Line Item request 1 to 3 From 3 Over Total
and less months. 12 5 років
1 to months.
1 2 month.
3 4 12 5 to 56 7 8
1 Due to banks 135 371 26 272 months. years
178 156 - - 339 799
2 Due to customers:
2.1 Individuals 110 220 122 067 410 548 24 704 - 667 539
2.2 Other 154 219 2 157 42 541 136 799 - 335 716
3 Debt securities - - - 23 372 - 23 372
issued by the bank
4 Other borrowed funds 199 - - - - 199
5 Subordinated debt - - - - - -
6 Other financial 936 14 1 435 - - 2 385
commitment
Postavochni forward
7 contracts, general - - - - - -
sum
8 Postavochni forward - - - - - -
contracts, net
9 Financial guarantees 10 930 4 922 19 593 - 25 455
10 Other liabilities 4 206 5 049 5 771 24 592 25 284 64 902
credit character
Total potential
11 future payments for - - - - - -
financial
obligations
Vik. P'yatakov GV
461-82-80
173
Table 29.10. Analysis of financial assets and liabilities by maturity based on the expected maturity of 2009
(Thousand).
At the request and From 12 months to 5
Line Item less than 1 month 1 to 3 months From 3 to 12 months years Over 5 years Total
1 2 3 4 5 6 7 8
Assets
1 Cash and cash equivalents 61 337 - - - - 61 337
2 Trading securities - - - - - -
Other financial assets carried at
fair value with recognition of
3 10 535 1 301 396 - - 12 232
through profit or loss
4 Due to banks 466 876 319 - - - 467 195
5 Loans to customers 212 503 177 822 791 190 245 420 70 641 1 497 576
6 Securities held for trading - 78 321 87 417 12 750 916 179 404
7 Securities held to maturity - - - - - -
8 Other financial assets 2 550 - 2 084 28 901 28 806 62 341
9 Total financial assets 753 801 257 763 881 087 287 071 100 363 2 280 085
Liabilities
10 Due to banks 498 041 132 000 77 000 - - 707 041
11 Customer Accounts 299 918 126 134 445 918 120 377 - 992 347
12 Debt securities issued by the bank - - 29 380 - - 29 380
13 Other borrowed funds 851 - - - - 851
14 Other financial liabilities 13 753 30 2 293 12 - 16 088
15 Subordinated debt - - - - - -
16 Total financial commitments 812 563 258 164 554 591 120 389 - 1 745 707
Net liquidity gap at the end of December 31
17 2009 (58 762) (401) 326 496 166 682 100 363 534 378
Cumulative liquidity gap of 31 534 738
18 (58 762) (59 163) 267 333 434 015 534 378
December 2009
174
Table 29.11. Analysis of financial assets and liabilities by maturity based on the expected maturity of 2008
(Thousand).
At the request and From 12 months to 5
Line Item less than 1 month 1 to 3 months From 3 to 12 months years Over 5 years Total
1 2 3 4 5 6 7 8
Assets
1 Cash and cash equivalents 58 055 - - - - 58 055
2 Trading securities - - - - - -
Other financial assets carried at
fair value with recognition of
3 through profit or loss 196 034 - - - - 196 034
4 Due to banks 132 312 26 580 40 370 - - 199 262
5 Loans to customers 71 565 154 862 621 196 440 221 85 593 1 373 437
6 Securities held for trading - - - - 916 916
7 Securities held to maturity - - - - - -
8 Other financial assets 8 111 - - - 27 263 35 374
9 Total financial assets 466 077 181 442 661 566 440 221 113 772 1 863 078
Liabilities
10 Due to banks 135 371 26 272 178 156 - - 339 799
11 Customer Accounts 264 439 124 224 453 089 161 503 - 1 003 255
12 Debt securities issued by the bank - - - 23 372 - 23 372
13 Other borrowed funds 199 - - - - 199
14 Other financial liabilities 936 14 1 435 - - 2 385
15 Subordinated debt - - - - - -
16 Total financial commitments 400 945 150 510 632 680 184 875 - 1 369 011
Net liquidity gap at the end of December 31
17 2008 65 132 30 932 28 886 255 346 113 772 494 068
Cumulative liquidity gap of 31
18 December 2008 65 132 96 064 124 950 380 296 494 068 494 068
Vik. P'yatakov GV
461-82-80
S. Ostapenko
461-87-27
175
Note 30. Money Management
The main purpose of the process of banking capital of OAO "UPB" is
creating protection from the risks attracting and maintaining sufficient capital to
expansion. Size of capital determines the volume of bank operations,
size of the deposit base, the possibility of borrowing on financial markets
maximum amounts of loans, the value of open foreign exchange position and other
parameters that significantly affect the bank's activities.
JSC "UPB" of capital management to achieve the following objectives:
- execution requirements of normative acts of Ukraine which determine the minimum
amount of capital and the required amount of own capital to ensure
implementation of mandatory economic standards set by the National
Bank of Ukraine;
- interests of creditors and investors to meet the needs of
reimbursement of funds;
- formation of the reserve and other funds. Funds should be
a bank to absorb losses for unrestricted and immediate
use in case of losses;
- risks of banking.
Bank plans its activities to supplement, if necessary, the capital.
The planning process involves the following steps: 1) development of the overall financial plan
Bank's activities, 2) determine the amount of capital needed to expand the active
operations, increase their risk, claims supervisors;
3) determine the amount of capital which the Bank is able to attract through
retained earnings, 4) evaluating and choosing the most acceptable foreign
sources of increasing capital by the analysis of market conditions, rights and interests
owners, forecasts on future profitability.
In the practice UPB provides for methods of internal and external
sources to replenish capital.
The method of internal sources to replenish capital - the main source of growth
capital is retained earnings of the bank. Net income remaining in
disposal of the bank after payment of taxes can be directed to perform such
main objectives: to provide a certain level of dividend payments to shareholders and sufficient
financing of the bank. The optimal dividend policy is such that
maximizes the market value of its shares. Return on bank shares shall not be lower than
yield other types of investment with the same level of risk. One important
impacts on the ability of banks to attract capital in the future is stability
dividend policy.
Advantages of the method of internal sources to replenish capital: independence from
market conditions, no costs to attract outside capital, ease of use,
simply because the funds are transferred from one account book to another, no
threat of loss of control over the bank from shareholders.
Disadvantages of the method of internal sources to replenish capital: total tax
because the increase of capital allocated net income after payment of all
taxes; problem dividend reduction, slow accumulation of capital).
The method is external sources to replenish capital. - Raising capital by
external sources, which is possible in several ways: 1) issue of shares, 2) emission
debt capital (subordinated debt), 3) asset sales and rentals
property. Management of the Bank resorts to external sources of growth capital base
in the case when you need to ensure rapid production of large amounts of money. For example,
Hyperinflation in bank capital can quickly inflated profits and can not
176
even enough to compensate for losses. If bank supervisors
revised capital adequacy norms, the bank management to face
task quickly and substantially increase capital, which is possible only through external
sources.
Priority the external source is the share issue. Issue and placing on the market
shares of the bank - is the most expensive in terms of cost way of increasing its capital. This
procedure associated with high costs and the considerable risk that
linked with a possible decrease in profit per share and loss of control over the ban-
com by shareholders. If the share issue and significant shareholders are unable to buy all new
shares, then the banks face the threat of a change in ownership due to merger control
stake. However, expanding the circle of shareholders creates favorable conditions for
raise additional funds in the future. Planning a share issue, management of bank
has to weigh the possibilities and to assess whether a sufficient level will be provided
profitability to maintain a stable level of dividends. If you do not achieve
fails, then the bank shares znetsinyuvatymutsya.
Capital bonds are long-term loan was disbursed
attached to the bank outside investors. Issue may be conducted in the form of registration in
turnover of long-term securities or debentures. Such obligation of the bank
constitute subordinated, ie, in the event of bankruptcy, they are minor compared
with liabilities to depositors, but have priority over shareholders if
establishment of priority of payment. Subordinated liabilities less risky than shares
bank, so have a lower yield. For a bank it is cheaper to source updating
capital compared to the issue of shares. The advantage of the method of replenishing the capital issue
subordinated debt is to increase profitability indices for one
action, provided that obtained in this way, income-generating resources that exceeds
interest payments on them.
To replenish capital and receiving substantial cash bank may
resort to conduct financial transactions such as sale of assets, including buildings,
buildings, offices, which include banks, with simultaneous long-term lease them to new
owners.
Management of the Bank takes into account the relative cost and risk associated with
each source, methods of state regulation and availability, as well as estimates
long-term prospects and implications.
During the reporting period, Open Joint Stock Company "Ukrainian
Professional Bank adhered to the mandatory norms of capital
established by the National Bank of Ukraine and the reporting date (as at 31/12/2009 City)
Capital adequacy ratio was - 27% (target value of the standard operating
banks shall be not less than 10 percent).
Table 30.1. The structure of regulatory capital
(Thousand).
Line Item 2009 2008
1 2 3 4
1.1 Bank's regulatory capital (RC) 469 299 438 698
Fixed assets
1.1.1 Actual paid registered 380 000 380 000
authorized capital
1.1.2 Contributions to unregistered statutory 9 500 -
capital
1.1.3 Disclosed reserves established or 42 184 20 257
increased by retained
177
Line Item 2009 2008
Profit:
1.1.3.1 Dividends are aimed at increasing - -
share capital
1.1.3.2 Issue differences 9 540 9 540
1.1.3.3 Total reserves and reserve funds that 32 644 10 718
created under the laws of Ukraine
1.1.3.3. of these reserve funds 31 890 9 964
1
Reduced MLC (sum nedosformovanyh
reserves, less the amount of intangible
1.1.4 depreciation, capital investments in (104) (173)
intangible assets, loss of past and
current years)
including:
1.1.4.1 nedosformovanyh amount of reserves for - -
active operations
1.1.4.2 Intangible assets minus the sum (104) (173)
wear
1.1.4.3 capital investments in intangible - -
assets
1.1.4.4 losses of previous years - -
1.1.4.5 Treasury shares (shares) bought in - -
Shareholders
1.1.4.6 estimated loss of the year - -
(Rpr / h)
1.1.4.7 adjustment of capital under - -
Bank regulatory documents
1.1.5 Major capital (MLC) 431 580 400 084
(Capital Level 1)
% The amount of primary and secondary 92 91
capital
Additional capital
Reserves for debt default
other banks, under standard
1.1.6 outstanding loans to 576 433
clients and for standard debt
operations for off-balance sheet
accounts (including revaluation criteria)
1.1.7 Revaluation of fixed assets 8 95
1.1.8 Estimated income this year 16 148 38 085
1.1.9 The profits of previous years 20 987
1.1.10 Subordinated debt is taken into account
Capital
1.1.11 Additional capital (capital Level 2) 37 719 38 613
1.1.12 Additional capital in the calculation (DC) 37 719 38 613
% The amount of primary and secondary 8 9
Capital
178
Line Item 2009 2008
1.1.13 Distractions (B) - -
including:
book value of shares (shares) of its own
1.1.13.1 emission taken to ensure - -
by bank loans
amount of transactions carried out with
1.1.13.2 insiders (connected persons) in - -
favorable conditions than conventional
1.1.13.3 Other - -
book value of shares and other securities with
1.1.13.3 ordinary income, which issued - -
.1 bank in the trading portfolio and
held for sale
amount of capital investments in associates
1.1.13.3 and - -
.2 subsidiaries and investments
institutions of 10 percent or more · x
1.1.13.3 share capital
amount of money invested in other banks on - -
.3 subordinated debt
book value of securities in the trading
1.1.13.3 portfolio, except CB, which - -
owned bank
The amount of excess positive HEPu
1.1.14 more than a year over the amount actually - -
paid-registered authorized
capital
1.1.15 Regulatory capital, nevidkoryhovanyy 469 299 438 698
the excess amount H7 and H9
amount exceeding the total
1.1.16 operations performed on one - -
contractor on the established and normal.
value standard H7
amount exceeding the total
1.1.17 operations performed on one - -
insider on the set and normal.
value standard H9
Total regulatory capital 469 299 438 698
JSC "UPB" does not belong to banks operating internationally and
make statements for the full consolidation method in accordance with the requirements of Basel
on capital (hereinafter - Agreement), which is defined in the Report on International Convergence assessment
capital and capital standards, and in addition to the Agreement, which introduced the consideration of market
risk (updated in November 2005, commonly referred to as "Basel I"), so
provide information on the structure of bank capital, which is based on
Agreement.
Vik. Reutov LP
461-82-89
179
Note 31. Potential liabilities of the Bank
a) cases in court.
From time to time in the normal course of the Bank's clients, contractors and other
state claims offices to the Bank. Management believes that due consideration
Bank will not suffer significant losses and, accordingly, no provisions for such losses
were not formed in this financial statements.
Information about the trials of "UPB"
(Concerning the requirements for the bank) as at 31.12.2009 was
1. 27/04/2009, the bank filed with the District Administrative Court of Kyiv
petition to abolish the tax notice Specialized Solutions
State Tax Inspection in Kiev to work with large taxpayers.
Amount challenged - 381,262.45 USD. Decree of District Administrative Court
c. Kyiv 10.26.2009, the claim of the bank granted in part. 11/23/2009, the bank filed
the Kiev appeal administrative court of appeal. SDPI in Kiev
to work with WFP also appealed to the specified solution.
Specified trial will not involve a financial impact on the
bank.
2. 02.14.2007, the Bank submitted to the Economic Court of Lviv region claim
decision to abolish the Office of the Pension Fund of Ukraine, the Galician region of
City to apply to a bank of financial penalties for violating the bank's customer
order of payment of duty on obligatory state pension insurance. Amount
challenged - 885,714.26 USD. Resolution of the Economic Court of Lviv region
17.04.2007 claim the bank is fully satisfied. Respondent filed an appeal.
By a decision of Lviv 25.09.2007, the Administrative Court of Appeal rejected
appeal the decision and left the trial court in effect. Respondent filed
cassation. 09/08/2009, the Supreme Court abolished all previous court decision, the case
submitted for reconsideration to the trial court.
Specified trial will not involve a financial impact on the
bank. According to the legislation of Ukraine in case of payment by the bank the amount specified
financial sanctions customer bank which violated order payment collection on
mandatory state pension insurance reimburses the bank the amount paid
sanctions in full recourse basis.
3. 06/09/2009, the bank received the claim Dzerzhinsky District Attorney
c. Krivoy Rog in the national interest represented by the Office of Housing and Utilities
Management Executive Committee Rih City Council to levy 540,000.00 USD. on
issued bank guarantees. Since these guarantees bank gave out, on the application
Bank was appointed to the forensic and technical expertise. According to the conclusions of the examination,
guarantees are counterfeit. In this regard, the court 23.2.2010 decided to refuse
the claim.
Specified trial will not involve a financial impact on the
bank.
4. 09/21/2009 public company, the joint-stock bank "UGB"
submitted to the Economic Court of Kyiv petition in the Open Joint
Society "Ukrainian Professional Bank" the nullity of the contract and surety
levied arbitrarily written off assets. The amount that the plaintiff intends to recover - 25 616
438.36 USD. 24/02/2010, the court decided to deny the claim.
This trial will not involve a financial impact on the
bank.
5. 09/08/2009 Moskalets Galina Ivanovna was submitted to the District Court Oktyabrsk
c. Poltava petition in the Open Joint Stock Company "Ukrainian
Professional Bank to consider a contract to participate in the Foundation Construction Financing
180
invalid and damages compensation and moral damages. The amount you intend
plaintiff to recover - 307 277.44 USD.
This trial will not involve a financial impact on the
bank.
b) the possibility of potential tax liabilities.
Due to the presence in the Ukrainian economic, including tax,
legislation provisions allowing more than one interpretation, and
due to a practice that has developed in an unstable economic environment in general through
arbitrary interpretation by the tax authorities of various aspects of economic activity, bank
may be forced to recognize additional tax liabilities, penalties and interest in
If the tax authorities piddadut doubt some interpretation based on an assessment
Bank's management. Management believes that the Bank paid all tax obligations, so
financial statements are free reserves to cover losses. Tax
charges may be reviewed by the tax authorities for three years.
c) commitment to capital investments.
The Bank had no significant contractual obligations related to the acquisition of capital
assets and intangible assets, outstanding at 31 December 2009 and 2008rokiv.
g) Table 31.1. Future minimum lease payments under non-cancellable leases
(Thousand).
Line Item 2009 2008
1 2 3 4
1 Up to 1 year 1 943 470
2 1 to 5 years 8 816 20 480
3 Over 5 years - -
4 Total 10 759 20 950
As at 31 December 2009 the Bank signed an agreement not to sublet, so
information on the total future minimum sublease payments as
expected to be received under non-cancellable sublease agreements available.
d) liabilities associated with lending.
In the course of its activities to meet the needs of customers using
financial instruments with off balance sheet risks. These instruments bear
varying degrees of credit risks that are not reflected in the balance.
Maximum exposure to credit losses as a result of the Bank
contingent liabilities and commitments to extend credit in case of failure
obligations of another party when the counter-claims, mortgage or security
appear to be impaired, defined contractual amount of those instruments.
For off-balance sheet liabilities Bank uses the same credit
control and risk management and operations, reflected in the balance.
Bank has made provision for the formation of off-balance sheet liabilities
lending (excluding liabilities to banks) under which the Bank shall not provide
funds on short notice counterparty (ie bank which bears no risk).
As of December 31, 2009 and 2008 reserve for off balance sheet commitments
amounted to 2.051 million and 941 000 USD, respectively.
Sum, adjusted for risk factors, determined by applying
coefficients of equivalent credit risk and credit risk factors
181
contractors in accordance with regulations of the National Bank of
forcing provisions for credit operations of banks.
Table 2.31. The structure of liabilities associated with lending
(Thousand).
Line Item Notes 2009 2008
1 2 3 4 5
1 Lending commitments, which 29 5 383 11 807
provided
2 Unused credit lines 29 33 038 53 095
3 Letters - -
4 Import letters of credit 29 275 -
5 Guarantees issued 29 5 563 25 455
6 Provisions for obligations that 16 (2 051) (941)
Credit related
Total liabilities
7 Credit related by 42 208 89 416
less provision
e) assets pledged, and mortgaged assets for which the prescribed limits
related to the possession, use and disposition.
Table 31.3. Assets pledged
(Thousand).
2009 2008
Line Prymit assets secured assets, secured
Item
-Ing provided in liabilities- provided in liabilities-
ing collateral ing collateral
1 2 3 4 5 6 7
1 Loans to other 6 162 894 162 599 59 114 59 114
banks
2 Loans to legal 7 512 564 254 846 147 023 100 500
Banking
8 Total 675 458 417 445 206 137 159 614
As at 31 December 2009 and in 2008 the Bank did not transfer to pledge assets to
which provided for limitations on ownership, use and disposal
them.
Vik. Shaforost NA.
461-82-80
Paschenko OV
461-82-81
Samborsky GM
461-87-32
182
Note 32. Fair value of financial instruments
Estimated fair value disclosures of financial instruments is
accordance with IAS 32 Financial Instruments: Presentation and IAS 39 Financial
Instruments: Recognition and Measurement.
Fair value is defined as the amount at which the instrument
can be purchased during the transaction between well-informed,
independent parties who intend to carry out such an operation, except
forced or liquidation sale.
The estimates presented in these financial statements may not reflect the amounts that
Bank was able to get to the actual implementation of the package available to it certain
financial instruments.
In determining the estimated fair value of financial instruments Bank
estimated using models that are commonly used by market participants and
based on the assumption that the balances of financial instruments is
result of operations conducted on normal market conditions.
Table 32.1. The carrying and estimated fair value of financial assets
and liabilities are not reflected in the balance sheet at fair value
(Thousand).
2009 2008
Line Name
Article carrying fair carrying fair
value value value value
1 2 3 4 5 6
ASSETS
Cash and cash
1 306382 306382 112129 112129
Equivalents
Due from
2 219089 219089 135817 135817
banks
Loans
3 arrears 1426095 1426095 1325314 1325314
clients
Securities
4 held for 181101 181101 916 916
sale
LIABILITIES
5 Due to banks 707041 707041 339799 339799
6 Customer Accounts 992347 992347 1003255 1003255
Debt
7 issued 29380 29380 23372 23372
Bank
Vik. Myrochynskyy E
461-82-94
183
Note 33. Transactions with related parties
Table 33.1. Balances with related parties as of the end date of December 31, 2009
(Thousand).
Top Leading Other
Line Item Parent members Affiliates Associate
administrative Related
company (Shareholders Company Company
personnel person
)
1 2 3 Bank
4 5 6 7 8
1 Trading securities - - - - - -
Other financial assets
2 at fair - - - - - -
value with recognition of
through profit or loss
3 Due to banks - - - - - -
4 Loans to customers - - - 3 680 - 15 052
5 Reserve for loans - - - (398) - (126)
6 Securities held for - - - - - -
sale
7 Securities held-to- - - - - - -
maturity
8 Investments in associates - - - - - -
9 Other assets - - - - - -
10 Long-term assets for - - - - - -
sales and assets of disposal group
11 Due to banks - - - - - -
12 Customer Accounts - 7 - 50 002 - 7 755
13 Debt securities issued by the bank - - - - - -
184
Top Leading Other
Line Item Parent members Affiliates Associate
administrative Related
company (Shareholders Company Company
personnel person
)
14 Other borrowed funds - Bank
- - - - -
15 Provisions for obligations - - - (195) - -
16 Other liabilities - - - - - -
17 Subordinated debt - - - - - -
Liabilities connected with
18 long-term assets - - - - - -
held for trading (or
disposal group)
Vik. Milevsky AL
461-82-89
185
Table 33.2. Income and expenses from transactions with related parties for 2009
(Thousand).
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
1 2 3 4 5 6 7 8
1 Interest income - - - 427 - 2 429
2 Interest expense - - - (6 773) - (42)
3 Reserves for outstanding - - - (336) - 42
credits
4 Dividends - - - - - -
Result from trading
5 securities in the trading - - - - - -
portfolio
Gains less losses from securities
securities accounted for
6 - - - - - -
fair value recognition
through profit
results
7 Gain on foreign trade - - - - - -
currency
8 Gain on revaluation of foreign - - - - - -
currency
9 Commission income - 6 - 1 - 59
10 Commission expenses - - - - - -
Profit / (loss) arising under
11 initial recognition of financial - - - - - -
assets at the rate that is higher
186
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
or lower than the market
Profit / (loss) arising under
12 initial recognition of financial - - - - - -
obligations under interest rate
higher or lower than the market
13 Impairment of securities held - - - - - -
Bank for sale
14 Impairment of securities held - - - - - -
to maturity
15 Provisions for obligations - - - (150) - 21
16 Other operating income - 1 - - - -
17 Income / (costs) of early - - - - - -
debt
18 Administrative and other operating - (151) - - - (788)
costs
19 Share of profits of associated - - - - - -
Companies
Vik. Milevsky AL
461-82-89
187
Table 33.3. Other rights and obligations arising from transactions with related parties as of the end date of December 31, 2009
(Thousand).
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
1 2 3 4 5 6 7 8
1 Guarantees issued - - - - - -
2 Guarantees received - - - - - -
3 Import letters of credit - - - - - -
4 Letters - - - - - -
5 Other liabilities - - - 831 - -
Vik. Milevsky AL
461-82-89
Table 33.4. Loans to related parties and related party repaid during 2009
(Thousand).
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
1 2 3 4 5 6 7 8
1 The amount of loans granted to related - - - 2 535 - 144
persons during the year
2 Total loans repaid - - - (157) - (5 990)
related party transactions during the year
Vik. Milevsky AL
461-82-89
188
Table 33.5 Balances with related parties as of the end date of December 31, 2008
(Thousand).
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
1 2 3 4 5 6 7 8
1 Trading securities - - - - - -
Other financial assets
2 at fair - - - - - -
value with recognition of
through profit or loss
3 Due to banks - - - - - -
4 Loans to customers - - - 1 302 - 20 898
5 Reserve for loans - - - (62) - (168)
6 Securities held for - - - - - -
sale
7 Securities held-to- - - - - - -
maturity
8 Investments in associates - - - - - -
9 Other assets - - - - - -
10 Long-term assets for - - - - - -
sales and assets of disposal group
11 Due to banks - - - - - -
12 Customer Accounts - 99 - 35 790 - 6 352
13 Debt securities issued by the bank - - - - - -
14 Other borrowed funds - - - - - -
15 Provisions for obligations - - - (45) - (21)
189
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
16 Other liabilities - - - - - -
17 Subordinated debt - - - - - -
Liabilities connected with
18 long-term assets - - - - - -
held for trading (or
disposal group)
Vik. Milevsky AL
461-82-89
190
33.6 Income and expenses from transactions with related parties for 2008
(Thousand).
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
1 2 3 4 5 6 7 8
1 Interest income - - - 115 - 3 159
2 Interest expense - - - (4 963) - (1 014)
3 Reserves for outstanding - - - (35) - (35)
credits
4 Dividends - - - - - -
Result from trading
5 securities in the trading - - - - - -
portfolio
Gains less losses from securities
securities accounted for
6 - - - - - -
fair value recognition
through profit
results
7 Gain on foreign trade - - - - - -
currency
8 Gain on revaluation of foreign - - - 305 - 599
currency
9 Commission income - 6 - 8 - 17
10 Commission expenses - - - - - -
Profit / (loss) arising under
11 initial recognition of financial - - - - - -
assets at the rate that is higher
191
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
or lower than the market
Profit / (loss) arising under
12 initial recognition of financial - - - - - -
obligations under interest rate
higher or lower than the market
13 Impairment of securities held - - - - - -
Bank for sale
14 Impairment of securities held - - - - - -
to maturity
15 Provisions for obligations - - - 13 - 175
16 Other operating income - 1 - - 16 -
17 Income / (costs) of early - - - - - -
debt
18 Administrative and other operating - (96) - - - (741)
costs
19 Share of profits of associated - - - - - -
Companies
Vik. Milevsky AL
461-82-89
192
33.7 Other rights and obligations on transactions with related parties as of the end date of December 31, 2008
(Thousand).
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
1 2 3 4 5 6 7 8
1 Guarantees issued - - - - - -
2 Guarantees received - - - - - -
3 Import letters of credit - - - - - -
4 Letters - - - - - -
5 Other liabilities - - - 308 - 282
33.8 Loans to related parties and related party repaid during 2008
(Thousand).
Top Leading Other
Line Item Motherboard members Affiliates Associate
administrative Related
company (Shareholders) Company Company
personnel person
Bank
1 2 3 4 5 6 7 8
1 The amount of loans granted to related - - - 668 - 20 529
persons during the year
2 Total loans repaid - - - (496) - (5 056)
related party transactions during the year
During the reporting year and the previous major shareholder is Bank Limited Liability Company "Ukrainian
Investment and Financial Alliance.
Vik. Milevsky AL
461-82-89
193
Table 33.9. Payments to key management personnel
(Thousand).
2009 2008
Line Item affirmed Accrued
costs costs
commitment commitment
1 2 3 4 5 6
1 Current employee benefits 1 626 - 2 079 -
2 Post-employment activities - - - -
3 Other long-term benefits - - - -
4 Termination benefits 13 - - -
5 Payments to equity capital - - - -
Vik. Kum O.
461-87-31
194
Note 34. Trust management accounts
(Thousand).
Line Item 2009 2008rik
1 2 3 4
1 Cash transactions for trust management - -
2 Current accounts of the bank - the trust manager 280 333
Management
3 Receivables for asset transactions 9 294 6 335
Management
4 Securities in trust - -
5 Precious Metals in trust - -
6 Other assets in trust - -
7 Expenses for asset management operations - -
8 Accrued income for facilities asset management - -
9 Total active accounts fiduciary 9 574 6668
10 Banking Funds Management 9 574 6668
11 Accounts installers - -
12 Payable on transactions of trust - -
Management
13 Income from fiduciary management - -
14 Total passive asset management accounts 9 574 6668
Shynkar NV
461 82 80
195
Note 35. Events after the balance
Between the balance sheet date and the date of Board approval of the Bank Financial
statements prepared for publication, happening events that may affect
economic decisions of users of annual financial statements.
Note 36. Information on the auditor (Audit firm) and conclusion
the audit
According to the contract number 09040100 of 22/04/2009, the annual audit
financial statements for 2009 conducted LLC Auditing firm "Blyskor, which
listed in the register of auditing activities for the number 1992 according to the decision
Audit Chamber of Ukraine № 98 from 26.01.2001g.
General Director of Audit Firm Blyskor "Shpakovskaya Tatiana
L. has a certificate of the Audit Chamber of Ukraine № 0044, issued on the basis
the Audit Chamber of Ukraine 29.10.2009r. Number 207 / 2. The validity period
certificate is extended until January 1, 2015. Certificate of National Bank of Ukraine
Number 0000019, issued on the decision of the Committee on audit of banks, the 08/30/2007
№ 1.
Address - 04074, Ukraine, Kyiv, str. Sokal 1, 42
The actual location - 01042, Ukraine, Kyiv, Boulevard Marie Pryimachenko,
1 / 27, of.506
Email - bliskor@gmail.com, tel / fax (044) 501-44-05.
Chairman A. Lyhochas
Chief Accountant T. Tarasenko
196