Six months ago, the country saw a change of power. How are the banks of former officials and businessmen close to Viktor Yanukovych faring?
During Viktor Yanukovych's presidency, officials and businessmen close to him accumulated assets. They managed to acquire shareholdings in six banks. Oleksandr Yanukovych, Serhiy Kurchenko, Oleksandr Klymenko, and Yuriy Ivanyushchenko became owners of these financial institutions. How are their banks faring since the change of power?
Brokbiznesbank
Last summer, Serhiy Kurchenko purchased approximately 80% of the bank's shares from the Buryakov brothers. VETEK Group's banking operations were overseen by Boris Timonkin, former chairman of the board of Ukrsotsbank.
In February, at the height of the Maidan protests, Brokbusinessbank received 1 billion hryvnias in refinancing from the National Bank. A month later, the financial institution was placed under temporary administration. On June 10, the NBU revoked the bank's banking license. It is currently undergoing liquidation proceedings.
According to Vasyl Pasichnyk, Managing Director of the Deposit Guarantee Fund, BBB had approximately 5 billion hryvnias in assets on its balance sheet. Fund specialists were only able to identify approximately 90 million hryvnias of this amount.
Sergei Kurchenko and Boris Timonkin have been declared wanted.
All-Ukrainian Development Bank
Oleksandr Yanukovych officially owns 100% of the bank's shares. During Viktor Yanukovych's presidency, VBR regularly appeared in rankings of the fastest-growing banks.
Following the change of power, the bank's growth rate slowed. Assets declined by 11%, corporate loans by 15%, and corporate deposits by 13%. The retail deposit portfolio saw a 14% increase in the first half of the year, but this was more due to the rising dollar exchange rate and the revaluation of foreign currency deposits.
VBR's business profitability isn't great either. While it earned 33 million hryvnias in 2013, it earned only 5 million hryvnias in the first half of this year.
The bank recently underwent personnel changes. On August 12, Valentina Arbuzova, Sergey Arbuzov's mother, resigned from her position as chairperson of the board.
All-Ukrainian Development Bank
million hryvnias
01.01.2014 01.07.2014
Assets 6538 5813
including loans to enterprises 3193 2698
including loans to individuals 672,592
Enterprise deposits 3181 2750
Population deposits 1561 1787
Financial result 33 5
Realbank
A small Kharkiv bank also fell under Serhiy Kurchenko's purview. VETEK Group was a key client of Real Madrid. Kurchenko repeatedly denied any involvement with the bank. At the same time, Timonkin did not deny VETEK's influence over him.
On March 3, the Deposit Guarantee Fund appointed a temporary administration to the bank. Without waiting for the temporary administration's term to expire, the NBU revoked Real's banking license at the end of May of this year. The bank is currently in liquidation.
Ukrbusinessbank
From 2003 to 2010, the bank was headed by former First Deputy Prime Minister Sergei Arbuzov.
Officially, the bank belongs to the company "Universal-L." Unofficially, it belongs to Alexander Yanukovych.
This bank's business is neither stellar nor stellar. In the first half of the year, assets decreased by 18%. Corporate outflows amounted to 10%, and households withdrew 42% of their deposits (data excluding exchange rate differences).
The bank's core business is concentrated in the Donetsk region. UBB's network in Donetsk comprises 22 branches. Ten of the bank's branches in the Donetsk region are currently closed.
In mid-August, armed men stormed the bank's head office in Donetsk. They took bank employees hostage and entered the bank's safe deposit box and vault. The extent of the damage to the bank has not yet been determined.
Ukrbusinessbank million UAH
01.01.2014 0 1.07.2014
Assets 5771 4681
including loans to enterprises 3933 3274
including loans to individuals 373,296
Enterprise deposits 2706 2433
Population deposits 2010 1147
Financial result 41 18
Zakhidinkombank
In 2009, Lutsk Bank was in crisis and under temporary administration. Rumors swirled of its imminent liquidation, but unexpectedly, shareholders emerged who recapitalized Zakhidinkom. Banking circles speculated that the Yenakiyevo gang had taken over the bank. It was later revealed that Yuriy Ivanyushchenko's son, Arsen, had become a shareholder.
The 2014 crisis again crippled the bank. In May, a temporary administration was appointed. In July, it was placed into liquidation.
Unison
The bank's website states that Unison shares are owned by two investment funds registered in Liechtenstein. Unofficially, the bank is owned by Anton and Alexander Klimenko. Alexander is the former Minister of Revenue and Duties, and Anton is the head of the Unison Financial Group.
Unlike other financial institutions close to the Yanukovych family, Klymenko's bank is doing well. Despite a 42% decline in assets, the bank earned 35 million hryvnias in the first half of the year. Last year, the bank's profit amounted to 300,000 hryvnias.
At the end of July, officers from the Prosecutor General's Office conducted a search of the bank. They were looking for evidence of militant financing in the East, but came away empty-handed.
The bank's profitability is growing rapidly due to currency exchange transactions. According to black market participants, they often receive sealed hryvnias bearing the bank's stamp.
The bank is also actively developing its cash-in-transit operations. In Luhansk, militants seized seven of the bank's cash-in-transit vehicles.
This week, news broke of a change in the bank's ownership. The new owners are now 11 foreign legal entities, each holding less than 10% of the shares.
Unison million UAH
01.01.2014 01.07.2014
Assets 1350 778
including loans to enterprises 278,352
including loans to the population 31 38
Enterprise deposits 208,141
Population deposits 137 89
Financial result 0,3 35
Lesya Voititskaya, Hubs
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