BNP Paribas announced that it has signed an agreement with the controlling shareholders of UkrSibbank to acquire a 51% stake in the Ukranian bank.
Based in Kiev, UkrSibbank was established in 1990 and is today one of Ukraine’s largest private sector franchises with a strong retail/SME focus and positions in corporate and investment banking.
In addition, UkrSibbank employs approximately 10,000 staff. For the first half of 2005, UkrSibbank had total assets of $1.4 billion, loans of $947 million and deposits of $820 million.
Shareholders’ equity at the end of the year is expected to be around $190 million. Full year 2005 net income is forecasted to be around $13 million (versus $15 million in 2004), following the bank’s substantial investment in the expansion of its branch network.
This transaction will strengthen BNP Paribas’ presence in Far Eastern Europe Russia, Ukraine, Kazakhstan, Belarus, Azerbaijan, Georgia, Moldova and Armenia, a region of over 230 million inhabitants and a combined GDP over $920 billion.
The transaction is subject to approval from the banking and regulatory bodies. It is expected to be completed during the first half of 2006.