Pivdenny Bank successfully passed the NBU's sustainability assessment in 2019

Pivdenny Bank passed the sustainability assessment of the National Bank of Ukraine and fulfilled all the regulatory requirements according to the assessment results.

Under the basic scenario, in which the rate of UAH 30.60 to the dollar was set, Pivdenny Bank does not need additional capitalization. It is evidence that the level of regulatory and core capital adequacy ratios corresponds to the required values.
Under the unfavourable scenario, in which the rate of UAH 42.00 to the dollar was used, the NBU estimated the need for capitalization of the bank at UAH 1.7 billion. At the same time, taking into account the actual measures taken by the bank as of 01.09.2019, the capital requirement under the unfavourable scenario was reduced to UAH 0.9 billion. On this basis, the National Bank determined the required level of capital ratios, which was 16.1 % for the H2 ratio (regulatory capital adequacy) and 14.9 % for the H3 ratio (fixed capital adequacy).

In order to increase regulatory capital, the Bank has developed a Restructuring Programme, which was approved by the National Bank on 24 December 2019. The Restructuring Programme is in line with the Bank's strategy for 2020-2022 and sets, among others, the target levels of bank capital ratios as of 01.10.2020: H2 standard – 13.2 %, H3 standard – 10.9 %.

Maintaining capital adequacy is one of the key priorities of Pivdenny Bank. Thanks to consistent work on improving the quality of assets and increasing the capital base as of 27 December 2019, the bank reached the H2 ratio of 14.7 % (+2.6 % since the beginning of 2019) and the H3 ratio of 11.4 % (+2.4 % since the beginning of 2019).

Pivdenny Bank shows a sustainable profitability growth and has strong support from shareholders. As a result of the 11 months of 2019, the bank's net profit is UAH 264 million, which is 5.7 % higher than in the same period last year. In September 2019, the shareholders allocated UAH 301 million in profits from previous years to increase the bank's authorised capital.