FUIB allocates UAH 1.3 bln, half of net profit in 2020, for dividends

 First Ukrainian International Bank (FUIB, Kyiv) will direct UAH 1.304 billion or half of the net profit received in 2020 (UAH 2.608 billion) to pay dividends, and the second half to increase the reserve fund.

The corresponding decision was made by the shareholders of the bank at an annual general meeting on March 22, the financial institution said in a press release.

"In 2020, FUIB kept its profitability at the level of last year, earning UAH 2.6 billion. The bank's liquidity and capital adequacy (19.5%) are almost twice the standards set by the regulator," chairman of the board of FUIB Serhiy Chernenko said.

According to him, this result testifies to the efficiency and reliability of the business model, competent corporate governance and readiness to adequately respond to external challenges.

The release states that the bank's operating income last year increased by 7.7%, to UAH 7.82 billion: net interest income before reserves increased by 29.4%, to UAH 6.84 billion with a decrease in net commission income by 4%, to UAH 1.67 billion.

The bank's net worth at the beginning of this year was UAH 9.68 billion, assets – UAH 75.26 billion, customers' funds – UAH 57.51 billion, the release recalls.

FUIB noted that the quality of its loan portfolio remains at a high level and according to the results of 2020, the share of bad assets in total assets and financial liabilities decreased from 10.2% to 4.9%, and as of March 1, 2021 to 4.4%, while throughout the banking system, this indicator at the beginning of the year was 16.1%.

Dividends will be paid in the amount of UAH 91.04 per share. Taking into account the payment of dividends, the capital adequacy would be 16.8%, and thanks to the direction of 50% of the profit to increase the reserve fund, the fixed capital ratio will improve to 15.7% with the norm of at least 7%, the release states.

Source: www.en.interfax.com.ua