A sharp deterioration of the business, financial, and political situation in Ukraine led to a significant reduction in bank deposits and poorer loan quality. Devaluation of Ukraine’s national currency amounted to 97% (from UAH 7.99 to UAH 15.77 for USD 1).
Sberbank Ukraine’s key objectives in the current conditions were to ensure timely fulfilment of its obligations to customers, maintain customer deposits, and manage the loan book.
Throughout the reporting year, the bank made significant efforts to mitigate adverse impacts on Sberbank Group’s performance:
- in 2014, the loan book decreased by 14.5%;
- headcount optimisation was completed;
- by the end of the reporting period, the outflow of retail customers decreased substantially and neared the average market level;
- in order to improve its capitalisation, in September 2014, the bank reclassified its interbank loan from OJSC Sberbank of Russia as a subordinated loan of USD 100 mn which provided a sufficient reserve to meet NBU’s mandatory equity requirements. The capital adequacy rate as of January 01, 2015 (Н2, min=10%) was 15.0%.
- the results of stress testing conducted by NBU revealed that the bank did not need additional capitalisation.