Fixed Income Analysis /

OSCHADBANK: Still profitable, but more to do on asset quality

    Tolu Alamutu
    Tolu Alamutu

    Credit Research Analyst, Banks

    Tellimer Research
    6 September 2017
    Published byTellimer Research
    Maintain our Hold – H1 17 contained some noteworthy positives: We reiterate our Hold recommendations on the Oschadbank (OSCHAD) bonds. Operating profit declined versus H1 16, as net interest income was lower than it was a year ago and operating expenses increased by over 30%. Net income of UAH306mn was 21% higher than in the previous year, driven by a YoY decline in provisions. However, there were some positives in the results – net fee and commission income was strong, capital ratios improved and there was no further, significant deterioration in asset quality.