12.03.10 VOLKSBANK is a good example of successful foreign investments

During the last several years VOLKSBANK PJSC has demonstrated rapid, dynamic development on the market of financial services of Ukraine, it has essentially strengthened its positions and has confirmed the image of the European bank. The Bank is always ready to meet customers and partners half-way, offering them favourable conditions of cooperation by all business directions. We have asked the Chairman of VOLKSBANK PJSC Managing Board Larysa Zahorodnya to share the secrets of such success.

— How do you estimate the position of VOLKSBANK PJSC on the banking services market?
— VOLKSBANK PJSC always tasks itself with keeping the appropriate level of business reputation and image. Customers and partners of VOLKSBANK PJSC know by own experience what the real banking service is. The accurate and well-organized work on customers servicing is secured by extensive usage of the advanced technological solutions. The processes developed by the Bank allow our clients to optimize the current work with the Bank.

It is a considerable achievement that VOLKSBANK PJSC is servicing more than 100 000 customers’ accounts today and continues to work actively to make our products more convenient and accessible. Clients trust us and it is the basic prove of successful work of the Bank and the highest appraisal of its performance.  Aiming at interests and needs of the customer is a recipe VOLKSBANK PJSC of success! We have an intention to work even more intensively further to make more people say: "VOLKSBANK PJSC is my bank."

— When, in your opinion, we can see the recovery of the market of banking services? Which expectations do you hold?
— The real recovery of the market will begin not earlier than Autumn 2010. Up to this time it will be possible to understand the goals on macroeconomic indicators for the nearest 2-3 years, economy development for the next years, inflation level and exchange rates policy. Business will make the plans and strategy, taking into consideration these factors. They, in particular, will become the orientation point both for banking and banks, based on which it will become possible  to determine the volume for lending renewal of real economy, the periods for which lending will be possible  and interest rates. In my view, in future there will be stronger connection of foreign currency loans to LIBOR rate plus some premium. These are general features of the market.

— What will happen to VOLKSBANK PJSC in Ukraine, are you expecting any financial inflows from the investor Volksbank Іnternatіonal?
— The Bank still will be actively developing. Presently, the Bank has efficient capital to increase lending volume. We have overliquidity, which at present is allocated in interbank loans and in NBU deposit certificates. As rule, this liquidity should move from these products to economy lending. When will it come to reality? I suppose, also not earlier than in Autumn 2010 when macroeconomic indicators and the drawn up budget will be obvious, when game rules will be crystal clear, only then we can expect certain activation in lending. As regards to the Bank’s structure and development plans, for 2010 I can forecast  insignificant increase of loan portfolio, practically no network expansion. The network will remain on the same level as present, the investor will search the ways to work under the existing conditions which have arisen overall in the country. It is wise to think how to receive the profit, namely, how to receive the bigger share of non-interest income, i.e. non-risk income, the one not directly related to lending: and it is new accounts and new services for customers, so in general we do not direct toward loan products since the loan portfolio will remain practically on the same level, i.e.  2009. In 2010 the Bank capital will be not increased, since the adequacy today is on level 18 % at the norm of 10 %. So we have reserve adequacy ratio on the level 1,8,  and it means, that we can increase amounts on active operations.

— What are your forecasts for the business dealing in future?
— Purposeful work on improvement of banking services, expansion of their range is the main objective of the bank in the nearest years. The number of people trusting VOLKSBANK PJSC is constantly increasing. Among them there are private individuals, SME representatives and large enterprises. Each day we find new partners and adherents, we expand a circle of our customers, at the same time increasing the customers base of VOLKSBANK PJSC.

The strategy of the Bank development is based on satisfaction of our customers’ needs. The basic emphasis is made on a wide range of the offered services, their universality and quality, application of innovative technologies. During the last two years VOLKSBANK PJSC managed to expand and considerably update a product line, offering the customers actual services and the better decisions.

In future the Bank is going to direct toward SME, private individuals-entrepreneurs and individual customers since our business is 85 % concentrated in the Western Ukraine, only 15 % for other regions. At such proportions it may be said that our future customers will be SME as such clients prevail over Western Ukraine and there is only a few of large customers  (corporations in inherent understanding of this word). Card products, electronic banking are to be offered to the market in 2010, that means we will advance in quality of product line. The network will be extended not earlier than 2011-2012, with more concentration in Central and Southern Ukraine.

— How much VOLKSBANK PJSC is interested in participation in the Forum?
— The Spring Business Forum is a good chance to exchange information between the authorities, domestic and foreign businessmen, which will contribute to the establishment of new business relations between participants Last year VOLKSBANK PJSC also took part in the Forum, and this year we have decided to continue this tradition since we care about the life of the city; moreover, we actively participate in it, being the perspective employer, honestly paying taxes to the local budget. VOLKSBANK PJSC is also a good example of the successful investment. As of September 1, 2008 EUR 310 mn. of foreign investments were attracted to the economy of Ukraine and Lviv region in particular. The foreign investor Austrian Volksbank Іnternatіonal AG has opened new possibilities for development of the Ukrainian economy and for each average citizen of the country in particular.