OREANDA-NEWS. March 25, 2014. Today many are worried, it is safe to place deposits and the currency in which it is better to do, what will be with the dollar, what triggered its growth and so on All this, as well as the results of the MEGABANK,PJSC last year, told Deputy Chairman Aleksander Shypilov.

- Aleksander, the first question: what is happening in the financial sector of Ukraine? What has caused the hike of the dollar, which naturally caused a stir among the population?
- As for the hike of the dollar, but this phenomenon has both objective and subjective reasons. If you look at the major trading partners of Ukraine, which Russia and a number of developing countries, almost all of them during this time devalued currency. Not to pay attention to it can not be, and this factor can be attributed to objective reasons dollar exchange rate in our country. Of subjective factors is to provide the political situation, which is today in Ukraine. Naturally, it has a psychological pressure on people.

- And yet, how today can one firmly keep one’s savings in banks? In which currency?
- I believe that money should always be stored on the classical risk sharing, ie in different currencies. Today, I would advise to keep the money 50 to 50: 50% – in national currency, 50% – in U.S. dollars.

On the issue of securely storing money in the bank: even a simple arithmetic calculation shows that prematurely terminate the deposit agreement is now unprofitable, because this tends to lose the interest. Even then the appreciation of the dollar does not cover loss of interest, that person carries upon early termination of the deposit agreement. So take early deposits today is simply uneconomical.

Speaking in particular about "MEGABANK" that keep their savings at us – always reliable. We are always on time fulfill all of our obligations. Moreover, we always have the support of our foreign shareholders, including such reputable international financial institutions such as the European Bank for Reconstruction and Development (EBRD), the German Development Bank KfW and the International Finance Corporation (IFC).

Nevertheless, we understand that there is some excitement, so consider it wrong in the current situation to leave customers alone with their unrest. That is why we have decided to spend every Tuesday (from 10.00 to 12.00) and Thursday (14.00 to 16.00) at the address. Artema, 46, 4th floor, open days for everyone.

Any existing or potential client can come and ask all his questions about the bank, its loan and deposit products, as well as issues relating to pension and social services.

In addition, during these activities the bank's employees express their views on the recent rise in the dollar, tell us what currency deposits today are better placed to help customers select the most suitable banking products. Ads open days are hung in all bank branches.

- Let's go back to the financial performance "MEGABANK" for 2013. Judging by the figures, last year was successful for the bank?
- Yes, the 2013th year was really successful for us, because almost all the indicators that have been planned for 2013, executed, some exceeded. Overfulfilment is achieved on assets and the bank's loan portfolio. How is this done? Due to the everyday hard work of the whole team. All the difficulties that we traditionally present in the environment, it has not prevented. We methodically worked to attract new clients and attract credit projects, gave loans and not paying attention to the external environment, to care about the interests and needs of our customers. In general, if you look at the numbers, the loan portfolio in 2013 we have grown to UAH 772 mln., or 20%. It is twice more than in the whole banking system of Ukraine.

We did not just increase our loan portfolio, but did so efficiently, due to the implementation of measures to improve the efficiency of the bank. This is not some new methods, and continuous hard work. In particular, emphasis was placed on high-margin products: consumer loans, microcredit lending to small and medium-sized businesses. Sale of these products is allowed us to increase its financial results for last year 10 times. This year we plan to surpass the results of 2013 three times. That is, if in 2013, we have made a profit of 20 million UAH. Then the next plan to get about 60 mln.UAH. You bet on the same products, which last year were the most profitable: consumer loans, microcredit.

- What kind of loans does offer MEGABANK,PJSC today to clients - legal entities?
- The choice is great, it all depends on the segment. If these are loans to large corporate clients, for them always is being developed individual loan product with special conditions. As for the small and medium business, it’s overdrafts, revolving / non-revolving credit lines for working capital, investment purposes.

We have a number of new products in microcredit, which are in good demand. This is an unsecured loan, which is given to the amount of 150 thousand UAH. for up to 2 years; credit to farmers for working capital of up to 1 mln. up to 1 year; loan for the purchase of fixed assets in the amount of up to 2 mln. UAH with term of lending of up to 5 years. Decisions on such loans are accepted within two days from the date of filing of the client.

Incidentally, according to the results of 2014, we plan to expand our portfolio of microloans three times. On January 1, 2014 it was 113 million UAH, compared with January 1, 2013 increased by 42 mln. UAH.  In absolute amount it is a small increase, but relative – 61% is a  fairly good indicator. Total in 2013 in the direction of microcredit has been granted 317 loans totaling 114 million 505 thousand UAH.

- Which of the credit products are most in demand today among individuals?
- Today's most popular consumer lending. This is a general trend in the banking system of Ukraine. Typically, these are unsecured loans for various consumer purposes. In MEGABANK,PJSC are issued "Cash Loans". This pilot project we started in late 2012, but already at the beginning of 2014 the loan portfolio in the context of the product was 37.7 mln. UAH (1844 agreements). During 2013 the bank granted to individuals 1830 cash loans in the amount of 44 million UAH. Growth of the loan portfolio by product for 2013 (including repayments) was 32.2 mln.UAH.

Cash loan service includes four tariff packages that differ in size, terms and conditions of the loan. The most popular among the population are the loans provided by the bank for 1 – 3 years in the amount of 10 – 20 th. (without income and security). Loans amounting to 20 – 50 th. (unsecured) for up to 3 years, and 50 - 150 thousand UAH. (effective warranty of natural person) for 4 years providing the bank with a document confirming the income of the client.

- Is there any problem with the bank credit refund? Is it possible to identify a category of clients, which is the so-called "at risk" in terms of return of loan funds?
- With new clients virtually there are no problems. In addition, we actually deal with those problematic customers, which appeared in the crisis: some debts restructured, sold somewhere collateral. In principle, this process is already completed, and new problems with the return of credit we do not feel.

With regard to risk, we, according to our strategy, try not to work with those clients who can belong to it. We have long ago identified for ourselves the segments of clients with whom we collaborate, including on the basis of risk and work with them. Therefore, we believe that customers who are involved in agriculture, industry, commerce, are the least risky. We try not to work with clients associated with the construction, non-banking financial sector. Our clients is the real economy.

- Changed over the past year interest rates on loans? Do you think it is possible to cheaper loans in 2014?
- No, there were no large fluctuations in interest rates on credit in 2013. I think the same trend will continue in the current year, and interest rate policy in this area will not change.

- As for deposits – will the rates change on them?
- Here, too, we can hardly expect major changes. This product is now in great demand. This is one of the most serious sources of resources for the banking system, and over time it becomes even more important. First of all, it is because a long time ago, foreign parent banks have ceased to finance their subsidiaries in Ukraine, thus redirecting them to the deposit market.  In addition, we are now seeing withdrawal of foreign banks from the Ukrainian market. All this leads to increased competition. Therefore, deposit rates remain relatively high. If deposits are expensive, and loans cannot be cheap.

In MEGABANK,PJSC the tariff policy has always been very balanced. Our rates on both loans and deposits have never been grossly underestimated or overestimated. We always try to keep the golden mean. This helps to keep ourselves adequately in the period of financial instability. Here and now, despite the overall unfavorable situation on the currency market, MEGABANK, PJSC remains reliable. And the best proof of this is the growth of the deposit portfolio over the past year. In particular, the deposit portfolio of clients – individuals MEGABANK, PJSC last year increased by 22% or 288.2 mln.UAH. As of January 1, 2014 it was 1.6 billion UAH. This, above all, says about the trust of the population.

- What are the current deposits in MEGABANK, PJSC?
- In the past year, we have revised their list and left only those that are most in demand among the population. These are the deposits: "2+2", "Productive month", "Urgent with replenishment" (with capitalization of interest, monthly interest payments or interest payments at the end of the period), "Upon demand". Also in the bank constantly operate loyalty programs for pensioners and recipients of social payments.

- What was notable for MEGABANK, PJSC 2013 regarding cooperation with international financial institutions?
- In the past year we have been able to attract funding from international financial institutions in the amount of approximately \\$40 million. In addition, we have a new partner – the Nordic Environment Finance Corporation (NEFCO). With them, we have signed an agreement on the \\$5 million. This year we plan to attract the same amount from our international partners available already today.

- What are the main challenges facing MEGABANK,PJSC in 2014?
- We have set ourselves ambitious targets. First of all, we plan to increase the financial results in three times, and assets - by 12%. Naturally, this will be achieved, including, and by increasing the loan portfolio. But its increase is not our primary objective: the main thing is to increase the efficiency of banking operations and to constantly improve the quality of our services. After all, we work for the people, and this is our main motto.