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Getin Holding abandons plans to sell Idea Bank due to war
KYIV. Aug 26 (Interfax-Ukraine) – Poland’s Getin Holding S.A. after the termination of the contract for the sale of 100% shares of Idea Bank (Lviv) with FUIB due to the failure to fulfill all its conditions before February 25, abandoned plans to sell this Ukrainian subsidiary bank amid the ongoing military aggression of the Russian Federation against Ukraine.
"Due to the current geopolitical situation in Ukraine and the impossibility of selling Idea Bank, the plan to sell the bank has been canceled, and the assets and liabilities of Ukrainian companies are no longer classified as held for sale," Getin said in a half-year report on the Warsaw Stock Exchange.
According to the report, the ongoing war in Ukraine is reflected in the holding’s business outlook. Realizing all the risks, after the stress tests conducted at the consolidated level, a loss from the impairment of Ukrainian assets was recognized (in addition to the bank, they include the Kyiv financial company New Finance Service LLC) PLN 230.58 million (about $48.5 million at the current exchange rate), while at the end of the first quarter such an estimate of losses amounted to PLN 222.9 million. This impairment reduced the value of the investment in Idea Bank to PLN 15.6 million, and in New Finance Service to PLN0.02 million.
According to the report, the net loss of the banking services segment in Ukraine amounted to PLN 208.32 million in the first half of 2022 due to write-offs and provisions for PLN 302.31 million, while last year in the first half of the year a net profit of PLN 44 was recorded, 48 million with write-offs and additional reservations of PLN 32.76 million
Assets fell in half a year from PLN 912.95 million to PLN 595.2 million, but the capital adequacy of Idea Bank grew from 14.9% to 17.43%, according to the report.
According to the document, the number of personnel in the Ukrainian assets of Getin Holding for the first six months of this year fell from 1,561 to 1,225 people.
Idea Bank (formerly Plus Bank) was founded in 1989. In 2021, its net profit amounted to UAH 581.07 million.
According to the data of the National Bank of Ukraine, as of July 1, 2022, Idea Bank ranked 31st in terms of total assets (UAH 9.82 billion) among 68 banks operating in the country.
