- Unicredit Group, holding 65 billion euro of equity capital at current market price, is one of the European leading financial groups. The group is present in such countries as: Azerbaijan, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Tajikistan, Turkey, and Ukraine. UniCredit Group foundation is the result of two big banks’ merging – Italian ‘UniCredito Italiano’ and German ‘HVB Group.’ Not without reason the ‘uni-’ prefix is translated as ‘united.’

    However, each of these banks was formed later, after numerous merging of various organizations, that is why, despite the fact that the Group was established in the beginning of the XXI century, it has its history since the end of the XV century.

In 2007 we continued the expansion and purchased ATF Bank in Kazakhstan along with ATF Bank – Kyrgyzstan. During the same period a bank in Ukraine was integrated into the Group, thus we entered the Central Asian Market.

 

- According to the volume of assets, ATF Bank – Kyrgyzstan is the second bank in the country. Also, according to certain characteristics it is even number one – we possess the biggest loan backlog. Besides, in accord with the final analysis of the previous year, the general deposit mass of money increased by 26%. This is a pretty good result for our small, but profitable bank in Kyrgyzstan.

     Basically, ATF Bank – Kyrgyzstan offers the whole range of credit service for SME. The bank has more than 10 thousand private clients. I would like to note, that after the April events, we acquired more than 1.7 thousand clients. For instance, we have been setting up a minimum of 50 new accounts a day for the last 1-1.5 months. This happens in the first place because people trust European financial institutions, part of which ATF Bank - Kyrgyzstan is.

    The investments of UniCredit in the bank enable not only to strengthen the position of the bank in the country, but also to take it to the leading part of the banking industry of Kyrgyzstan. In 2009, for example, we attracted $20mln. of the loan of European Bank of Development and Reconstruction as well as $10mln. of the World Bank’s. The authority and status of UniCredit Group is undoubtful for tens of millions of clients all over the world. The Group is present in 22 countries, having 10 thousand departments.

 

- Two weeks ago we received an official allowance from Ministry of Justice of Kyrgyzstan and now we are going to change the brand “ATF Bank - Kyrgyzstan” for “UniCredit Bank.”

 

- It goes without saying that the clients of ATF Bank – Kyrgyzstan are given the service of a high level, which is inherent in all the banks of UniCredit Group. For our part, we give careful consideration and spend much time to get the personnel taught western standards. For the purpose of this, we send our employees to the trainings in Austria, Italy, and invite European consultants to Kyrgyzstan and Kazakhstan systematically.

    As for the issue of new bank’s products, of course, the clients of ATF Bank – Kyrgyzstan as well as the clients of European banks, being a member of the Group, will be granted all of them. We do our best to make our service and products meet the requirements of our clients at highest possible level.  Understanding what problems face our clients in real everyday life, we want them to get concrete responds to their questions, not just empty promises; we want their expectations to be legitimate. Being a client of ATF Bank – Kyrgyzstan, you become a client of the entire Group automatically.

- Those ambitious goals that we set for the management of ATF Bank – Kyrgyzstan: to expand the market share, increase the credit backlog and etc. – everything had to be revised after the recent disturbances. Now, the quantity of people, willing to obtain bank lending, has reduced. The clients are biding their time. Some borrowers asked a delay to be granted. We made a concession. That is why we are expecting some deterioration in the quality of credit backlog. But the deposit base growth, in turn, enables to read good results. Also, we are planning to introduce new European software and equipment, thereby we rise the effectiveness of business network and develop bank service technologies.

 

 - How have the financial performance measures of UniCredit Group, based on the results of 2009, changed?

- Last year the Group demonstrated a good result. The Group’s net profit fraction made up 1,702 mln. euro, 371 mln. euro of which were obtained during the forth quarter. The forth quarter results, 2009, serve as a further confirmation of some positive elements. These are: balance and capital structure improvement, operational expenditures decrease, and net commission increase. At the same time, net profit from trading activities, hedge profit and fair value profit decreased, to which the sector development slowdown gave rise, in comparison with the excellent results of the activities during three quarters in 2009.

    We had to create more provisions for doubtful credits, and we continued the course of expenditures reduction in order to increase the effectiveness of work. But on the other hand, the Group’s net profit fraction was 520 mln. euro, this is 40% rise, in comparison with the previous quarter, and 16.5% more, compared with the similar period last year.

    We were happy with the overall results, including the crisis period. While other banks were reporting huge losses, we, UniCredit, showed 1.7 bln. euro profit. Not that much we planned, but still. One of the factors that enabled us to remain “afloat” – our views’ conservatism. We stayed away from contemporary financial mechanisms and instruments, which were widespread among other banks. I mean securitization, derivatives and others.  Thus, we devoted ourselves to the classic bank operations: placed deposits, issued loans, made other payments and so forth.

    To save and expand the market share – it is important, but not the main thing for us. It is much more important to have sustainable business, offer service of high quality, and of course, earn profit for our shareholders.  

 

 

            Saken Jumagulov

«Biznes i Vlast» newspaper №22 (314) of 11.06.2010