OREANDA-NEWS. On 29 April 2008 was announced, that Shareholders of Raiffeisen Bank Aval approved the report of the Bank’s Management Board on results of the Bank’s performance in 2007, along with the Annual Report and the balance sheet of the Bank for 2007.

According to Volodymyr LAVRENCHUK, CEO of Raiffeisen Bank Aval, the respective decision was approved on the 25th of April, 2008 at the general shareholders’ meeting of Raiffeisen Bank Aval, held in Sumy.

The shareholders also defined the main directions of Raiffeisen Bank Aval’s 2008 activities and approved the decision to distribute the Bank’s 2007 net profit to payment of dividends as well as towards the Bank’s capital increase. Dividends will be calculated and distributed to holders of both ordinary and privileged shares of Raiffeisen Bank Aval. During the meeting, the shareholders approved the Reports and the Conclusions of the Bank’s Audit (Revision) Commission and those of the External Auditor on the financial and economic activity of Raiffeisen Bank Aval in 2007.

The shareholders of Raiffeisen Bank Aval also approved an increase in the Bank’s paid-in capital by UAH 140 million via the additional 24th issue of the Bank’s ordinary registered shares. According to the agreed terms of the 24th issue of shares, the Bank will issue 1.4 billion of ordinary registered shares at the total nominal value of UAH 140 million. At that, according to the decision of shareholders and based on an average-weighted market value of the Bank’s shares for the last six months, the sale price of the Bank’s shares issued during the 24th issue at the primary market will be UAH 1.00 per share. This will allow the Bank to increase its regulatory capital by UAH 1.4 billion.

The Bank’s shares of the 24th issue are to be placed in two phases during July 1st- August 29th, 2008.

According to V. LAVRENCHUK, "The increase of our capital will open additional opportunities for further strengthening of the Bank’s financial performance and ensuring its future sound development. A major part of the funds to be mobilized from the shareholders will be placed in loans to households and corporate clients, while the rest of the funds will support Bank’s current liquidity and modernization of its branch network" .

The shareholders of Raiffeisen Bank Aval enlarged the membership of its Supervisory Board by appointing Rainer Franz, member of the Managing Board of Raiffeisen International Bank-Holding AG, as the Bank’s Supervisory Board member.

Raiffeisen Bank Aval, founded in March 1992 as Bank Aval, is one of the largest banks in Ukraine and occupies the leading positions on Ukraine’s banking market by a number of core financial indicators. Headquartered in Kyiv (Ukraine), Raiffeisen Bank Aval reported own capital of UAH 5.2 billion, net assets of UAH 44.5 billion and loan and investment portfolio amounted to UAH 37.6 billion as at 1 January, 2008. The country-wide branch network of Raiffeisen Bank Aval comprises 1,180 business outlets throughout Ukraine.

Raiffeisen Bank Aval is a subsidiary bank of Austria’s Raiffeisen International Bank-Holding AG. Raiffeisen International operates one of the largest banking networks in CEE. 17 markets of Europe's growth region are covered by subsidiary banks, finance leasing companies and a number of other financial service providers. About 14 million customers are attended to through more than 3,000 business outlets. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB), which owns 68.5 per cent of the common stock. The balance is free float, the shares are traded on the Vienna Stock Exchange. RZB is a leading corporate and investment bank in Austria and the central institution of the Austrian Raiffeisen Banking Group, the country's largest banking group.