Interview with the Chair of the Management Board of Commercial Industrial Bank. The international rating agency Standard & Poor's Global Ratings forecasts the stability of Ukrainian banks and expects the recovery of their indicators after the COVID-19 pandemic.
According to analysts, growth in the retail and corporate segments will primarily be restored by subsidiaries of foreign banks and private Ukrainian banks.
The profit indicators of financial institutions in 2021 will correspond to the level of 2020. What 2020 was like and what awaits the banking system in 2021 we discussed with the Chair of the Management Board of Commercial Industrial Bank, Tetiana Putintseva.
— Tetiana Volodymyrivna, how can one characterize the situation in the economy in 2020 and what was it like for the banking system as a whole?
— The World Bank raised the forecast for the growth of the gross domestic product (GDP) of Ukraine in 2021 to 3%. Even in October 2020, its forecasts were two times more modest - at the level of 1.5%.
In the January issue of the World Bank's "Global Economic Prospects", the forecast of the fall of the Ukrainian economy in 2020 at the level of 5.5% and growth at the level of 3.1% was maintained at the same level.
The Ministry of Economy has maintained the forecast of the fall of Ukraine's GDP in 2020 at the level of 4.8% by the end of the year and forecasts its growth in 2021 by 4.6%.
The banking system - is the arteries of the economy, with high sensitivity to the market situation. In 2020, banks of Ukraine received UAH 41.3 billion of net profit.
This is 29% less than the same period of 2019. COVID 19 undoubtedly affected the financial condition of banks, but this impact was less perceptible than was expected in the spring of 2020.
The number of unprofitable banks did not increase and 65 banks out of 73 were profitable, with a result of UAH 47.7 billion, which exceeded the losses of 8 other banks.
It can be confidently stated that banks are developing in pandemic conditions with a significant margin of safety. With a general decline in business activity and a reduction in the value of resources, the banking system of Ukraine remains profitable, operating profit is quite high, and credit losses are not significant.
— Tetiana Volodymyrivna, with what results did your Bank end such a difficult 2020? Did you manage to implement all the plans set?
— The year was very difficult not only for our Bank, but for the entire banking system. Despite this, during 2020 the Bank actively increased assets and the client base, getting ahead of competitors and increasing efficiency.
Despite the crisis processes in the economy, the bank's assets grew more than twofold to UAH 3.1 billion. By the volume of assets, the Bank rose from 49th place to 42nd in the NBU rating. The growth of client funds increased by 68%, the volume of legal entities' funds increased almost threefold, individuals' - by 1.5 times.
We recorded a profit at the level of UAH 42 million. Summing up the results of the year, it can be said with confidence that the Bank reached the planned financial indicators, is confidently building up business volumes, and is one of the most dynamically developing banks.
— Tetiana Volodymyrivna, how do you see the further development of the Bank, has the strategy been defined, what will be the emphasis in business?
— The Bank is focused on servicing small and medium-sized business enterprises; this will continue to remain a priority segment for us.
According to UN data, in general, small and medium-sized enterprises in the world employ almost 50% of the working population and produce 33-60% of the national product.
The Bank will also continue to develop the service for individuals, while maintaining a balanced policy of planned digitalization of business. At the end of December 2020, we approved a new development strategy of the Bank, which defines business benchmarks until 2024.
— Tetiana Volodymyrivna, currently many clients complain that many banks refuse to service them or require a large number of documents. Does such a problem exist?
— Strengthening conditions regarding the purity of financial operations - is a global trend and in the future we are awaited by even more serious control of cash financial flows, confirmation of the origin of funds, detailed documentary explanation of transactions risky for the bank, and real blocking of accounts to find out the purity of financial flows.
Banking systems throughout the world have been operating in this mode for a long time. Our country has also prepared the base and is testing individual tools.
The complexity lies more in clients' misunderstanding of individual norms and rules.
In many banks, preference is given to refusing service to a client, rather than spending time on explaining the reasons and, all the more, providing assistance.
It is precisely for this reason that we pay special attention to consulting and individual work with each client in our service model.
— Tetiana Volodymyrivna, what advantages, in your view, will help the Bank implement the outlined strategy?
— We have always been a universal bank, but corporate business has always been a priority for us. At the same time, our efforts are also directed at creating a comfortable service for individuals.
The plans for this year include connecting to BankID, implementing contactless payment technology Apple Pay Google Pay, and further developing mobile bank functions. Our main advantage over large banks is our flexibility and mobility.
Thanks to the support of our foreign shareholder, we receive operational information about trends on European markets, about measures carried out by Western banks. This gives us the ability to quickly make the necessary decisions and effectively implement the Bank's development strategy. An equally important advantage is the accumulated experience of work in the corporate segment.
In the complicated market conditions of today, we pay much attention to consulting support for clients, find mechanisms for solving non-standard business tasks, and try to treat clients' temporary difficulties with understanding.
We are actively building up the loan portfolio, increasing the volume of factoring and guarantee operations. All this became possible thanks to the professional team of the Bank.
Of course, having become a bank with 100% foreign capital, trust in the bank has grown, which contributes to a significant growth of the resource base and an increase in the number of depositors. We have a single vision of the Bank's development with the shareholder; we look confidently into tomorrow and are convinced that the strategy's goals will be achieved.
Background:
Commercial Industrial Bank - is a universal bank, founded in 1993, with a full range of financial services for corporate and private clients. The bank's network has 38 branches in various regions of Ukraine. JSC "CIB" fulfills all economic norms established by the NBU in accordance with legislation.
Tetiana Putintseva has banking experience of more than 20 years, 14 of which - in managerial positions. She began with the position of branch economist and after several years became the head of one of the branches of "Privatbank". From 2006, Tetiana Volodymyrivna held the position of Deputy Chair of the Management Board.
She worked on the management staff of PJSC "Prominvestbank", JSC "Swedbank", JSCB "TAS-Komertsbank", OJSC CB "Pivdenkombank". From 2013, she held the position of Deputy Chair of the Management Board of JSC "TASkombank" - head of the Eastern region.
Appointed Chair of the Management Board of Commercial Industrial Bank from April 2018.
