Banking sector Eurobond issuers - 2Q12 results overview

Обзор облигаций 10.08.2012 Banks are still struggling to return to decent profitability (the NPL surge in 2009-11 is still being felt), but their debt-servicing capacity is currently beyond concern. Steady deposit inflows (+10% yoy in June) against the backdrop of sluggish lending (+4% yoy) leaves banks with sufficient funds to make timely payments on liabilities. We remain positive on the liquidity and solvency of privately held FUIB and Privatbank, as well as state-owned Ukreximbank and Oschadbank. The latter two are deploying all new cash into government T-bills, but the money will certainly be returned should the banks need it for debt redemptions. We are wary of Finance & Credit Bank and VAB Bank Eurobonds as we believe the issuers need shareholder support for liquidity and solvency. To view the full report, follow this link and login: http://rs.concorde.ua/research/research-reports/?get_file=982