19.08.2009, 10:39
ProCredit Bank Writes Information Letter to Customers
OREANDA-NEWS. August 17, 2009.
Dear Valued Customers and Partners,
Following our tradition of keeping you up-to-date during these difficult times in Ukraine’s financial sector, in this information letter we would like to outline the most important recent developments at ProCredit Bank Ukraine.
Lending activities
During last year’s financial crisis, banks in Ukraine had to suspend lending due to the economic downturn in Ukraine, the impossibility of making reliable forecasts, and the need to increase liquidity in the banking sector. ProCredit Bank Ukraine is determined to achieve the objectives set by its shareholders, which comprise international financial organisations whose aim is to support economic development. This mission can only be accomplished if we provide reliable lending support and customer services not only during periods of economic prosperity, but also in times of economic hardship. Therefore, one of ProCredit Bank Ukraine’s priorities was to resume lending operations as soon as possible and thus continue to provide access to credit resources to the small and medium-sized enterprises which are our core client base, and whose development is crucial for a stable and strengthened economy in Ukraine. ProCredit Bank Ukraine resumed its lending activities in the agricultural sector in February of this year. We were able to restart our business lending operations in April, thanks to higher levels of liquidity, stable inflows from clients, support from our shareholders and a revised approach to lending.
As an integral part of the economy, banks can only function when depositors and other creditors have confidence in them and act accordingly, and banks and borrowers take a responsible approach to dealing with funds. ProCredit Bank has always based its lending decisions on a thorough financial analysis of each borrower, disbursing loans according to the financial needs and payment capacity of its clients, because such an approach is vital to win the confidence of depositors and creditors. In keeping with our commitment to the principles of transparency and responsibility, we would like to take this opportunity to remind potential borrowers that, in light of the current economic instability, any decision to apply for a loan should be given careful consideration and the need to borrow should be evaluated conservatively.
Deposits and customer service
ProCredit Bank Ukraine is a member of an international group of banks successfully operating in 22 countries worldwide. We aim for stable and controlled growth, rather than profit maximisation, which allows us to take a prudent and cautious approach to banking operations. As for attracting deposits and our approach to customer service, ProCredit Bank Ukraine focuses on being a reliable institution and a safe repository for funds, while at the same time seeking to promote a culture of saving. This is evident not only in the range of services we provide on favourable terms and conditions, but also in the financial education activities carried out by our staff. Deposits are all the more secure given that ProCredit Bank is not geared towards aggressive growth and profit maximisation, but rather places a priority on responsible development in line with its shareholders’ requirements.
ProCredit Bank guarantees complete and timely fulfilment of its obligations to clients such as the processing of payments and deposit repayment. We also wish to emphasise that the bank will meet its clients’ demands for withdrawal of deposits prior to maturity, which has become possible now that the National Bank of Ukraine has adopted a resolution overturning the ban on early withdrawals.
We are also happy to report that in 2009 ProCredit Bank Ukraine was authorised by the Pension Fund of Ukraine to service pension accounts. Today our branches service pension accounts and provide services that offer the highest level of affordability and flexibility.
Infrastructure and branch network
We would like to inform you about some important decisions that we have taken concerning our infrastructure and branch network.
Economic recession has forced most commercial enterprises to shift from active growth, which had been possible over the last several years, to maintaining stability and formulating a strategy for gradual future growth in line with the growth of the Ukrainian economy. ProCredit Bank is placing an emphasis on optimising costs and achieving sound performance, both of which are essential to achieve our current goals and to prepare for further development.
Like other businesses, we took measures to cut administrative expenses and to optimise procurement processes and the functioning of our infrastructure.
The next important step was the decision to close several branches, which allowed us to better manage our infrastructure and reduce administrative costs. We understand that transferring service to another branch might lead to a certain amount of inconvenience for some clients; however, the streamlining of our branch network is a responsible measure which enables us to carry out the bank’s priority tasks, namely, to guarantee stability, safety and accessibility. We consider it important to explain the logic behind our decisions:
First, the economic changes that we have been witnessing have created not only difficulties but also opportunities. In the past we were unable, due to high rent fees, to establish branches in certain locations which would be convenient and accessible for our clients; today new opportunities exist in a number of regions. Thus, in some areas – especially in larger cities – we have relocated several branches, which means closing one branch and opening another.
Some branches – usually the newly opened ones – were not able to reach the volume of business necessary to maintain themselves. We thus decided to close the branches which an analysis of market potential indicated to be unsustainable over the medium term. It should be noted that other branches continue to operate in all these cities, and the bank thus remains able to provide quality service to its clients. All obligations to clients will be met and the full range of services will be provided.
An important priority in our operations is to ensure a high level of stability and safety of client deposits. The bank’s stability is achieved not only through careful and comprehensive approaches to attracting and placing funds and managing the loan portfolio, but also through sound management of our own organisation and costs. To this end, it is necessary for the bank to carry out activities aimed at reducing and optimising administrative expenses.
It is primarily the interests of our clients and partners that stand behind our cost-cutting activities. Through the optimisation of our infrastructure and of our expenditures, we are able to render services to clients at a stable and affordable price while also ensuring sufficient profitability on deposits. We consider this to be very important in light of the recent drastic decline in profitability in banking and in other sectors.
We would also like to emphasise once again that the goal of the bank and its shareholders is sustainable growth and development. To this end, we provide affordable, responsible, high-quality banking services to businesses and individuals. We will continue to open branches in locations where there is demand and where our bank’s presence will make a difference, rather than just becoming yet another bank among many.
Shareholders and capital
In 2009 our shareholders have taken important steps to support ProCredit Bank Ukraine. In April the shareholders approved a capital increase of UAH 77 million, creating a solid foundation for our lending operations and for further development. ProCredit Holding – a joint-stock company owned by both public and private-sector investors – is a strategic shareholder of the ProCredit group and holds 80% of the shares of ProCredit Bank in Ukraine. The other 20% of the shares are held by the European Bank for Reconstruction and Development.
In the course of 2009, the German state-owned bank KfW will also become a shareholder of ProCredit Bank Ukraine. KfW is one of the main shareholders of ProCredit Holding and has been a partner of ProCredit Bank Ukraine since its inception. The contributions of our shareholders attest to ProCredit’s long-term strategy in Ukraine and its readiness to lend to small and medium-sized enterprises.
Yours sincerely,
The Management
ProCredit Bank Ukraine.
Dear Valued Customers and Partners,
Following our tradition of keeping you up-to-date during these difficult times in Ukraine’s financial sector, in this information letter we would like to outline the most important recent developments at ProCredit Bank Ukraine.
Lending activities
During last year’s financial crisis, banks in Ukraine had to suspend lending due to the economic downturn in Ukraine, the impossibility of making reliable forecasts, and the need to increase liquidity in the banking sector. ProCredit Bank Ukraine is determined to achieve the objectives set by its shareholders, which comprise international financial organisations whose aim is to support economic development. This mission can only be accomplished if we provide reliable lending support and customer services not only during periods of economic prosperity, but also in times of economic hardship. Therefore, one of ProCredit Bank Ukraine’s priorities was to resume lending operations as soon as possible and thus continue to provide access to credit resources to the small and medium-sized enterprises which are our core client base, and whose development is crucial for a stable and strengthened economy in Ukraine. ProCredit Bank Ukraine resumed its lending activities in the agricultural sector in February of this year. We were able to restart our business lending operations in April, thanks to higher levels of liquidity, stable inflows from clients, support from our shareholders and a revised approach to lending.
As an integral part of the economy, banks can only function when depositors and other creditors have confidence in them and act accordingly, and banks and borrowers take a responsible approach to dealing with funds. ProCredit Bank has always based its lending decisions on a thorough financial analysis of each borrower, disbursing loans according to the financial needs and payment capacity of its clients, because such an approach is vital to win the confidence of depositors and creditors. In keeping with our commitment to the principles of transparency and responsibility, we would like to take this opportunity to remind potential borrowers that, in light of the current economic instability, any decision to apply for a loan should be given careful consideration and the need to borrow should be evaluated conservatively.
Deposits and customer service
ProCredit Bank Ukraine is a member of an international group of banks successfully operating in 22 countries worldwide. We aim for stable and controlled growth, rather than profit maximisation, which allows us to take a prudent and cautious approach to banking operations. As for attracting deposits and our approach to customer service, ProCredit Bank Ukraine focuses on being a reliable institution and a safe repository for funds, while at the same time seeking to promote a culture of saving. This is evident not only in the range of services we provide on favourable terms and conditions, but also in the financial education activities carried out by our staff. Deposits are all the more secure given that ProCredit Bank is not geared towards aggressive growth and profit maximisation, but rather places a priority on responsible development in line with its shareholders’ requirements.
ProCredit Bank guarantees complete and timely fulfilment of its obligations to clients such as the processing of payments and deposit repayment. We also wish to emphasise that the bank will meet its clients’ demands for withdrawal of deposits prior to maturity, which has become possible now that the National Bank of Ukraine has adopted a resolution overturning the ban on early withdrawals.
We are also happy to report that in 2009 ProCredit Bank Ukraine was authorised by the Pension Fund of Ukraine to service pension accounts. Today our branches service pension accounts and provide services that offer the highest level of affordability and flexibility.
Infrastructure and branch network
We would like to inform you about some important decisions that we have taken concerning our infrastructure and branch network.
Economic recession has forced most commercial enterprises to shift from active growth, which had been possible over the last several years, to maintaining stability and formulating a strategy for gradual future growth in line with the growth of the Ukrainian economy. ProCredit Bank is placing an emphasis on optimising costs and achieving sound performance, both of which are essential to achieve our current goals and to prepare for further development.
Like other businesses, we took measures to cut administrative expenses and to optimise procurement processes and the functioning of our infrastructure.
The next important step was the decision to close several branches, which allowed us to better manage our infrastructure and reduce administrative costs. We understand that transferring service to another branch might lead to a certain amount of inconvenience for some clients; however, the streamlining of our branch network is a responsible measure which enables us to carry out the bank’s priority tasks, namely, to guarantee stability, safety and accessibility. We consider it important to explain the logic behind our decisions:
First, the economic changes that we have been witnessing have created not only difficulties but also opportunities. In the past we were unable, due to high rent fees, to establish branches in certain locations which would be convenient and accessible for our clients; today new opportunities exist in a number of regions. Thus, in some areas – especially in larger cities – we have relocated several branches, which means closing one branch and opening another.
Some branches – usually the newly opened ones – were not able to reach the volume of business necessary to maintain themselves. We thus decided to close the branches which an analysis of market potential indicated to be unsustainable over the medium term. It should be noted that other branches continue to operate in all these cities, and the bank thus remains able to provide quality service to its clients. All obligations to clients will be met and the full range of services will be provided.
An important priority in our operations is to ensure a high level of stability and safety of client deposits. The bank’s stability is achieved not only through careful and comprehensive approaches to attracting and placing funds and managing the loan portfolio, but also through sound management of our own organisation and costs. To this end, it is necessary for the bank to carry out activities aimed at reducing and optimising administrative expenses.
It is primarily the interests of our clients and partners that stand behind our cost-cutting activities. Through the optimisation of our infrastructure and of our expenditures, we are able to render services to clients at a stable and affordable price while also ensuring sufficient profitability on deposits. We consider this to be very important in light of the recent drastic decline in profitability in banking and in other sectors.
We would also like to emphasise once again that the goal of the bank and its shareholders is sustainable growth and development. To this end, we provide affordable, responsible, high-quality banking services to businesses and individuals. We will continue to open branches in locations where there is demand and where our bank’s presence will make a difference, rather than just becoming yet another bank among many.
Shareholders and capital
In 2009 our shareholders have taken important steps to support ProCredit Bank Ukraine. In April the shareholders approved a capital increase of UAH 77 million, creating a solid foundation for our lending operations and for further development. ProCredit Holding – a joint-stock company owned by both public and private-sector investors – is a strategic shareholder of the ProCredit group and holds 80% of the shares of ProCredit Bank in Ukraine. The other 20% of the shares are held by the European Bank for Reconstruction and Development.
In the course of 2009, the German state-owned bank KfW will also become a shareholder of ProCredit Bank Ukraine. KfW is one of the main shareholders of ProCredit Holding and has been a partner of ProCredit Bank Ukraine since its inception. The contributions of our shareholders attest to ProCredit’s long-term strategy in Ukraine and its readiness to lend to small and medium-sized enterprises.
Yours sincerely,
The Management
ProCredit Bank Ukraine.
Комментарии