First Ukrainian Bank Profit Slumps 38% on Loan ProvisionsKateryna Choursina
First Ukrainian International Bank’s profit fell 38 percent last year after an economic slump boosted provisions for bad loans.
Net income fell to $34.7 million from $56.4 million in 2011, the Donetsk, Ukraine-based bank said in an e-mailed statement late yesterday. Provisions for retail loans stood at $31.1 million, or $14.5 million more than a year earlier.
Ukraine’s economy shrank 1.3 percent in the July-September period and 2.5 percent in the last quarter of 2012 as domestic consumption failed to offset the country’s weakening exports, according to statistics data. Gross domestic product probably shrank 1.4 percent in the first three months of 2013, according to the median forecast of six economists in a Bloomberg survey.