Private Bank (Ukraine)

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  PAO KB PrivatBank
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Headquarters of the private bank in Dnipro (2010)
PrivatBank headquarters in Dnipro (2010) ⊙
Country UkraineUkraine Ukraine
Seat Dnipro
legal form ТОВ ( GmbH )
BIC PBANUA2XXXX
founding 1992
Website www.privatbank.ua
Business dataTemplate: Infobox credit institute / maintenance / data out of dateTemplate: Infobox credit institute / maintenance / year missing
Employee over 30,000

The private bank ( spelling PrivatBank , Ukrainian ПриватБанк ) is by far the largest bank in Ukraine . Its headquarters are in the city of Dnipro . The bank was nationalized in December 2016 so as not to endanger the Ukrainian financial system. Until the nationalization, the bank belonged to the private group . The main shareholders were Ihor Kolomojskyj , Aleksej Martynow and Hennadij Boholjubow . The bank employs around 30,000 people.

Key figures

As of February 1, 2011, the private bank was serving 2.4 million Ukrainian retirees, 3.4 million people received their wages and salaries in private bank accounts, and 1 million students received their scholarships through the private bank. The banking infrastructure in Ukraine includes almost 7,000 ATMs, 2,228 self-service payment terminals , 35,486 POS terminals , 3202 branches and offices in various locations and regions of the country. On average, around 1.5 million people use the private bank's services every day.

Subsidiaries

The bank has the following subsidiaries: Privatbank Cyprus in Cyprus , MoscomPrivatbank in Russia , AS Privatbank in Latvia , TaoPrivatbank in Georgia and AS Privatbank in Portugal . The private bank also has branches and representations in 12 countries including Italy , Cyprus, the United Kingdom and the People's Republic of China .

history

Private bank branch in Kiev (2008)

It was one of the first private commercial banks in Ukraine. The establishment of the bank was decided by the founding meeting on February 7, 1992. As a result, the bank was registered by the relevant state authorities on March 19, 1992.

In the beginning, the private bank only had a small office with a few computers. Its first chairman was Serhij Tihipko . It was the first bank in Ukraine to introduce plastic cards and set up ATMs. In 1996 the bank became a full member of the international payment system Visa International and was able to begin with the mass issue of payment plastic cards. In 1997 the bank became a full member of the Europay payment system. In 1998 it received the rating decision from the rating agency Fitch . In November 1998, following a tender, the bank was selected to make payments from the Swiss Foundation for the benefit of former Holocaust victims.

In 1999 the private bank opened its first foreign branch in Cyprus, and the Nicosia branch was also the first branch of a Ukrainian bank abroad.

In 2000, the legal form of the bank was changed from a limited liability company to a closed joint stock company.

A significant event for the banking system in Ukraine was the introduction of the Privat24 project, which allows many customers to manage their own accounts online via the Internet, as well as a. Payments and transfers made possible. In February 2002 the private bank was able to issue the one millionth plastic card. In 2003, it was named the Best Bank by Western Union for Quality of Customer Service . In the same year, the bank received the STP Excellence Award from Deutsche Bank . The private bank was the first among Ukrainian banks to place Eurobonds amounting to 100 million US dollars on the European market. It was also the first in Ukraine to receive the В-minus rating from Standard & Poor’s . The rating agency Fitch also awarded the bank's Eurobonds the long-term В-minus rating.

With the resolution of the shareholders' meeting on April 30, 2009, the activities of the bank were adapted to the law of Ukraine “On Joint Stock Companies”, for which corresponding changes were made in the articles of association. The type of stock corporation was changed from a closed to an open one, and accordingly the name of the bank was changed to an open joint stock company Kommerzbank "Privatbank". These changes have been in force since July 21, 2009 by License No. 22 of the National Bank of Ukraine dated July 29, 2009.

The private bank increased its net profit in 2010 compared to 2009 by 30 percent to up to 1.37 billion hryvnia . The bank's capital assets increased by 32 percent in the period mentioned and amounted to 113.44 billion hryvnia on January 1, 2011, loans and customer receivables increased by 36 percent to 101.86 billion hryvnia, liabilities by 34 percent to 101.56 billion hryvnia , the share capital increased by 13 percent to 8.86 billion hryvnia and the equity increased by 16 percent to 11.88 billion hryvnia.

After Russian troops occupied Crimea in mid-March 2014 , the bank closed all branches on the peninsula and denied the Crimean people access to their accounts. The statements of the Russian President Putin were interpreted as approving it if the citizens of Crimea did not service loans at the private bank that date back to before the Russian occupation. The Crimean government installed by Russia stated for its part that the assets of the Crimean citizens in the private bank correspond to the sum of the loans, which the bank rejected.

Due to the appointment of its co-owner, Ihor Kolomoyskyj, as governor of Dnipropetrovsk Oblast in March 2014, the private bank was the target of armed robbery, arson and break-ins, especially in the Donetsk and Luhansk regions, during the 2014 crisis in Ukraine . The bank subsequently closed several branches in these regions in May 2014.

After a stress test, the financial regulator agreed a recapitalization plan with the bank. The bank was unable to adhere to this plan, which is why it was nationalized in December 2016 in order to prevent the bank from collapsing and thereby endangering the Ukrainian financial system. The chairman of the board, Oleksandr Dubilet, and the entire management were dismissed. 95% of the bank's loans are said to have been paid out to companies owned by the main owners, Kolomoyskyi and Boholyubov. An agreement obliged both of them to refinance these loans by early July 2017. Without repayment, the oligarchs could face criminal prosecution, which would be a novelty for Ukraine.

Supervisory board and shareholder

Before the nationalization, the shares of the private bank were distributed among 21  natural and 5  legal persons in different proportions. The majority of the shares were owned by the two shareholders Henadiy Boholyubov and Ihor Kolomojskyj.

Innovations

Since February 1, 2011, the most frequently used technologies have been mobile banking via the cell phone under the name LiqPay and 3D-Secure, which was introduced in 2010 to protect against fraud. In addition, the electronic change technology "No coins" was introduced in the bank branches, which enables remaining amounts not to be paid out in coins, but to be transferred as electronic money via mobile phone or issued as electronic vouchers.

Social projects

In 2008 a “children's bank” called Juniorbank was set up, where children and young people can learn about banking.

In 2010, exhibitions for creative work by retirees were organized in the bank branches as part of the “Create with enthusiasm!” Project. As part of the “Skype: Victory Day ” project, war veterans from different places and countries were able to find their friends and communicate with them. The project was nominated for the international competition European Excellence Awards 2010.

In 2010, the private bank developed a special project “Help is easy!” To simplify the implementation of charitable campaigns. The aim of this project was to collect donations for children's homes.

In addition, the private bank makes its ATM infrastructure available for collecting donations free of charge for charitable purposes. In January 2011, for example, the private bank organized a 24-hour free donation collection for those affected by the terrorist attack at Moscow-Domodedovo airport  - over 105,000 hryvnia were collected in Ukraine alone - and in October 2010 a collection of donations for the families of the victims of a traffic accident in Marhanets in the Dnipropetrovsk region , which raised 101,000 hryvnia. In March 2010, 11,000 hryvnias were collected for those affected by the terrorist attack on the Moscow Metro and in June / July 2008 530,000 hryvnias were collected for those affected by the flooding in western Ukraine.

In 2011 the bank intended to carry out a social project “Private bank against drugs!”.

Allegations of embezzlement of IMF funds

The anti-corruption initiative "Our Money" (Ukrainian : Наші Гроші , Nashi Groshi ) accuses the private bank of having smuggled money from the International Monetary Fund of 1.8 billion US dollars abroad.

The alleged fraud involved accounts in Cyprus, Belize and the Virgin Islands and is believed to have expired: 42 Ukrainian companies owned by 54 offshore companies based in the Caribbean, the US and Cyprus and linked to the private bank , took out $ 1.8 billion in loans from the private bank. The Ukrainian companies used it to order goods from six foreign suppliers, three of which were based in Great Britain, two in the Virgin Islands and one in the Caribbean. The money was then transferred to the sellers' accounts, which happened to be with a private bank branch in Cyprus. The Ukrainian companies reported the ordered goods to the private bank as security for their loans, but the foreign suppliers broke their contracts and never delivered the goods. As a result, all 42 companies sued the court in Dnepropetrovsk for repayment of the payments made and for the cancellation of the credit business with the private bank. The court ruled the same in all cases, the foreign companies should transfer the amount back, but the loan agreements would remain.

“Basically, this $ 1.8 billion overseas transaction with the help of fake contracts was an asset extraction and a violation of existing laws,” Harpers Magazine quoted Nashi Groshi's journalist Lesya Ivanovna as saying. “The whole story of the lawsuits was only needed to make it look like the bank itself wasn't involved in the fraud scheme. Officially, it now looks as if the private bank owns the products, although they are actually never delivered. "

Despite numerous reports from organizations such as “Nashi Groshi” and the Anti-Corruption Action Center (ANTAC), the Ukrainian prison authorities remained inactive for a long time. In the meantime, investigations against the private bank have been initiated under public pressure, as reported by Johnson's Russia List, citing the Ukrainian media. “We are aware of the existence of criminal proceedings. Privatbank is working unconditionally with the investigators and will provide all information and documents to properly establish the truth in this case, "Interfax Ukraine quoted a spokesman for the private bank.

Awards

  • 1999 to 2002: The private bank was honored by the magazine “ Euromoney ” as the best Ukrainian bank on the domestic market with the “Award for Excellence Rating”.
  • 1999: " Global Finance " magazine named the private bank "the best Ukrainian bank in developed markets".
  • 1999 and 2003 to 2004: Awarded “World's Bank Best Awards” - “The best bank in Ukraine”.
  • 2000, 2002 and 2010: The private bank was named “the best bank in Ukraine” by the English magazine “The Banker”.
  • 2001 to 2009: The private bank was recognized by the magazine “Global” eight years in a row as the best bank in the rating “World's Best Foreign Exchange”.
  • 2003: The private bank was named the best bank by Western Union for the quality of customer service in 2003.
  • 2003: According to Global Finance magazine, the private bank is the best bank in Ukraine.
  • 2004: The private bank was recognized as "The Best Bank 2004", according to the global rating of FOREX market operators in the "Global Finance" magazine.
  • 2005: “Best Emerging Marker Banks Rating”, award as “the best bank in Ukraine”.
  • 2007: The bank was awarded “Certificate Excellence Awarded to PrivatBank for the fastest network development” from MoneyGram .
  • 2009: The private bank was named the best bank in Ukraine by the magazine “EMEA Finance” with the award “Best local bank in Ukraine”.
  • 2010: According to the annual results, the magazine “The Banker” honored the private bank's “Electronic Change” technology with the “Innovation in Banking Technology Award” in the “Best Innovation in Cash and Treasury Technology” category.

See also

Web links

Commons : PrivatBank  - collection of pictures, videos and audio files

Individual evidence

  1. ↑ Entry in the BIC directory at SWIFT
  2. ↑ You can purchase Odnoklassniki.ru for taxes paid by the private bank. UNIAN , January 24, 2011, accessed February 5, 2016 (Russian, original title: За налоги, которые заплатил ПриватБанк, можно купить Одноклассники .ru).
  3. ^ List of the DAB de Privatbank. Archived from the original on May 16, 2012 ; Retrieved February 5, 2016 (Russian, original title: Банкоматы ).
  4. ↑ List of self-service payment terminals by city. Archived from the original on May 13, 2012 ; accessed on February 5, 2016 (Russian, original title: Bass- терминалы по городам ).
  5. ↑ Elena Moschenez ( Елена Мошенец ): Interview of the chairman of the private bank for the newspaper. “Investgazeta” ( Инвестгазета ), December 13, 2010, archived from the original on March 6, 2014 ; Retrieved February 5, 2016 (original title: Глава "Приватбанка": "Амбиции у всех разные" , issue no. 49).
  6. ↑ Homepage of Privat24. Private bank, accessed February 5, 2016 (English, Russian, unknown language, Ukrainian, original title: ПРИВАТ24 ).
  7. ↑ Every fifth Ukrainian bank generated losses in 2010. Kyiv Post , February 9, 2011, archived from the original on October 6, 2012 ; Retrieved on February 5, 2016 (English, original title: Every fifth Ukrainian bank operated at a loss in 2010 ).
  8. ↑ PrivatBank generated more than anyone else in 2010 - almost 1.4 billion hryvnia. January 28, 2011, archived from the original on November 8, 2012 ; Retrieved on February 5, 2016 (Original title: Приватбанк заработал больше всех за 2010 год - почти 1.4 млрд гривен , news agency "Ukrainian News" ( Українські новини )).
  9. ^ "Scholl": Disillusionment in the Crimea: Chaos and fear after the Anschluss. nachricht.at , March 29, 2014, accessed on February 5, 2016 .
  10. ↑ Neil MacFarquhar with the support of Olga Rudenko and Alexandra Odynova: Seizures of assets in the Crimea, from the shipyard to the film studio. The New York Times , January 10, 2014, accessed January 10, 2014 (original title: Seizing Assets in Crimea, From Shipyard to Film Studio ).
  11. ↑ After fighting in the east - largest Ukrainian bank closes branches. Frankfurter Allgemeine Zeitung , May 5, 2014, accessed on February 5, 2016 .
  12. ↑ Oleksandr Dubilet, ex-CEO of PrivatBank on file.liga.net on November 7, 2018; accessed on September 3, 2019 (Russian)
  13. ↑ Biography Dmytro Dubilet on ua-rating.com from August 31, 2019; accessed on September 3, 2019 (Russian)
  14. ↑ Private bank: Ukraine nationalizes largest bank - oligarch speaks of "hostile takeover" . Spiegel Online, December 19, 2016.
  15. ↑ Matthias Benz: Nationalization of the influential private bank: Kiev's great purge . In: Neue Zürcher Zeitung . December 19, 2016, ISSN  0376-6829 ( nzz.ch [accessed on December 21, 2016]): “But one bank was now“ too big to fail ”: the private bank of the two oligarchs Ihor Kolomoiski and Hennadi Boholiubow. Every second adult and every second company in Ukraine has a business relationship with what is by far the largest institute in the country. If the bank had gone down, the deposits of over 20 million customers would have been jeopardized. Nationalization was the only way to protect customer deposits and save the Ukrainian financial system, said central bank chief Hontarewa. "
  16. ↑ PrivatBank: Ukraine nationalizes the country's largest bank - manager magazin . In: manager magazin . ( manager-magazin.de [accessed on December 21, 2016]).
  17. ↑ The state holds the scepter in Kiev's most controversial bank , NZZ, January 24, 2017, title of the print edition
  18. ↑ homepage LiqPay. Privatbank, accessed February 5, 2016 (English, Russian, unknown language, Ukrainian).
  19. ↑ Homepage of the junior bank. Private bank, archived from the original on November 8, 2012 ; Retrieved February 5, 2016 (Russian, original title: ЮниорБанк - Школа финансового успеха ).
  20. ^ Center for Charitable Contributions of the PrivatBank “Helping is easy”. Private bank, archived from the original on July 23, 2012 ; Retrieved February 5, 2016 (Russian, unknown language, Ukrainian, original title: Центр благодійних внесків Приватбанку «Допомагати просто» ).
  21. ↑ "Прокладки", через які з "Приватбанку" за три місяці вивели $ 1.8 мільярда . nashigroshi.org, February 5, 2015, accessed February 5, 2016 (Ukrainian).
  22. ↑ Andrew Cockburn: Undelivered goods. Harpers Magazine , August 13, 2015, accessed January 5, 2016 (original title: Undelivered Goods ).
  23. ↑ Graham Stack: The largest Ukrainian lender private bank searched for the diversion of 1.8 billion US dollars from IMF payments. Johnson's Russia List, August 24, 2015, accessed September 24, 2015 (English, original title: Ukraine's largest lender PrivatBank investigated for diverting $ 1.8bn of IMF funds ).
  24. ↑ Euromoney homepage. Retrieved February 5, 2016 .
  25. ↑ Country report Ukraine. gfmag.com, accessed on February 5, 2016 (English, original title: Ukraine Country Report, “Global Finance Rankings & Awards” tab).
  26. ^ "The Banker" website. Retrieved February 5, 2016 .
  27. ↑ Global Finance website. Retrieved February 5, 2016 .
  28. ^ Website of "EMEA Finance". Retrieved February 5, 2016 .