During the first six months of 2010, VAB Bank’s portfolio of private individual deposits saw a 29.3% increase, against the 15.6% growth demonstrated in the second quarter. In general, individual liabilities portfolio of VAB Bank has been growing nearly 2 times ahead of the overall banking system’s portfolio during the first half of 2010.
“Albeit reduced interest rates faced by the banking market since the beginning of this year our customers have continued demonstrating active interest in depositing their free funds. Of course, the loyalty to our products has been the product of trust to the European quality standard VAB Bank has offered its clients for over 18 years now. This said, the above-market growth rate of our deposit resource should be seen as a result of flexibility and convenience of new deposit products introduced to the Bank’s product line since the beginning of 2010. These include the Do It Yourself Deposit and the Pension Deposit products, that accounted for 45% of new clients attracted in June,” Mr Tsvetan Petrinin, VAB Bank deputy chairman and head of retail and distribution, emphasised.
The increase in the deposits average maturity to 4 – 6 months in the second quarter was another trend pointed out by the expert.
“Today’s depositor tends to prolong deposit maturity, which works towards eventual accumulation of a longer-term resource in the banking sector, allowing for sound active operations,” Mr Petrinin summarised.
Reference data
Vseukrainsky Aksionerny Bank (VAB Bank) has been operating in the Ukrainian financial market since 1992 and belongs to the group large banks in Ukraine according to NBU. Branch network consists of 150 outlets throughout Ukraine and a representative office in Budapest (Hungary). TBIF Financial Services B.V., a large international company based in the Netherlands, is among the bank’s shareholders. Total assets of VAB Bank amounted to UAH 7.3 billion as of 1 January 2010, regulatory capital – UAH 1,195 million
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