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Plan of Alfa-Bank Ukraine capitalization for $1 bln includes possible $500-600 mln to meet capital adequacy ratio in 2023 – supervisory board
KYIV. Sept 21 (Interfax-Ukraine) – Alfa-Bank Ukraine’s $1 billion proposed additional capitalization includes both a possible need of $500-600 million to meet the capital adequacy ratio in 2023 and resources for increasing lending, Roman Shpek, the chairman of the supervisory board, said.
"According to our observations and assessments of the situation with clients, Alfa-Bank Ukraine may need $500-600 million over the next year to maintain consistently high capital adequacy ratios. But it all depends on the development of the situation at the front, the state of the economy, the income of Ukrainians, the state of clients’ assets," he said in an interview with Interfax-Ukraine.
The banker noted that the bank remains operationally profitable, and its losses are associated with additional provisioning, so if the situation improves and the reserves are released, today’s funds in support of capital may also be directed to lending in the future.
"We were recognized as systemically important, and we want to remain systemically important in the post-war recovery of the country and its economy. And in order to lend, you need capital, and not just technical compliance with standards," he said.
According to the expert, the majority of banks in Ukraine will face the problem of additional formation of reserves and compliance with the capital adequacy ratio because of a full-scale war unleashed by the Russian Federation.
Shpek said that if the additional capitalization of $1 billion is implemented in practice, the bank will be able to take part in financing priority projects established by the government.
The head of the supervisory board also emphasized that the key goal of additional capitalization is not lifting sanctions against shareholders, but the development of the bank and its staff.
"Given the insinuations around this topic, I would like to note that our shareholders do not in any way put forward the investment of $1 billion in Ukraine as a condition for lifting personal sanctions from them, which is clearly communicated to the regulatory authorities. Therefore, talk of "buying indulgence" has no grounds," he said.
