OREANDA-NEWS. August 2, 2011. On July 16 2011 a consolidation of First Ukrainian International Bank (FUIB) and Dongorbank has been completed. The banks have consolidated balance sheets and branch networks. Commencing from July 18 the combined bank works under a joint brand FUIB.

On July 15th the General Shareholders Meeting has made a decision to increase the share capital and issue additional shares of "FUIB" in the amount of registered capital of "Dongorbank", which is the final step in the reorganization process of consolidation of Dongorbank and FUIB.  The General Shareholders Meeting has also adopted procedures and conditions for the exchange of "FUIB" stocks for "Dongorbank" ones. The Banks have consolidated balance sheets and approved a transfer deed implying that Dongorbank ceases to carry out its activities as a financial institution and the process of shares exchange as well as registration of FUIB’s articles of incorporation as a bank successor starts.

The consolidated bank has increased the branch network from 135 to 171 as well as ATM network from 649 to 851 devices; a joint ATM network of FUIB and its partners amounts to 4000 devices throughout Ukraine. Clients have got an access to a broader product range and a number of additional services including Internet banking PUMB online, mobile banking and transactional banking, factoring and documentary operations. A new product range and tariff scale had been developed prior to the consolidation, while the head offices and branch networks were brought to the same business standards. Owing to the increase of capitalization, the Bank is able to raise credit limits for customers.

The united Bank has become the 10th largest financial institution in Ukraine by assets and capital. At the moment of the merger the combined bank’s assets amounted to UAH 25.4 billion, the capital – to UAH 3.7 billion, corporate credit portfolio – to UAH 13.8 billion, private credit portfolio – to UAH 4.6 billion, private deposits – to UAH 8.4 billion, and corporate deposits – to UAH 5.6 billion.

“Throughout the consolidation process both banks continued expanding its business, developing and launching new products and services, and growing customer base. Becoming the 10th largest bank in Ukraine testifies to the efficiency of the work conducted”, said Konstantin Vaysman, Chairman of the FUIB Management Board.

As part of the new strategy, the consolidation creates a platform for further growth to bring FUIB to a leadership position on the banking market of Ukraine in all business fields. According to preliminary calculations consolidation, break-even is to be achieved in the middle of 2012 and operational cost saving is expected to be to the tune of 10% plus per annum due to economies of scale.

"The decision of the shareholders of FUIB and Dongorbank to merge banks was fulfiled in record time and is an example of successful integration project and is the largest merger in the recent history of Ukraine. At that, the merger went smoothly and the team worked consistently. We believe that all the tasks set by the shareholders before the bank's management had been implemented quickly and efficiently, " said Ilya Arkhipov, Chairman of the Supervisory Boards of FUIB and Dongorbank, Head of SCM Business Development.