The Government Adopted the Development Strategy of Joint Stock Company "The State Export-Import Bank of Ukraine"

On December 9, 2020, at a meeting of the Government, the Development Strategy of Joint Stock Company "The State Export-Import Bank of Ukraine" for 2020-2024 was adopted, which was approved by the Bank's Supervisory Board.

The document provides that Ukreximbank will undergo a complex transformation based on three components:

-business model: focusing on its core business (export-import companies, state-owned enterprises) and reducing the cost of serving non-earmarked customers, potentially losing some less profitable customers;

-operative model: process optimization and radical digitization with reduced physical presence;

-financial sustainability: focusing on improving its position with capital and on long-term financial recovery through optimizing the balance sheet and improving costs and revenues.

In addition, the Bank's risk-weighted assets are expected to increase from UAH 68 billion to UAH 99 billion by 2024, while the balance sheet currency will decrease due to the sale of securities.

The Bank will strive to achieve a projected net profit of ~ UAH 3.0 billion, return on capital ~ 22% and expenditure-to-income ratio ~ 36%.

By 2024, the bank should gradually reduce the number of its branches, real estate, number of staff, potentially to 25-35 branches (almost twice) and 900-1,300 employees (almost three times).

It is also envisages that Ukreximbank will work to improve the capital situation by settling non-performing assets.

The approved Development Strategy of Ukreximbank will provide its proper functioning and contribute to the effective management of this state bank, protection of the rights of depositors, creditors, and the state as a shareholder and will be the basis for developing a strategy for its further development.