Ukrsib Bank assessment noting BNP Paribas and EBRD ownership and loan performance metrics

Ukrsib bank I have considered a number of banks (Appendix I) and given my experience in the country, Ukrsib is my top choice for the following reasons: «= Image of a European reliable, ethical, healthy bank with good electronic banking solutions (Top 5 in 2017) servicing first class corporate customers and their employees. The shareholders comprise BNP Paribas (60%) and EBRD (40%). = Good coverage ratio of problematic loans, a practice of French banks we have observed in many occasions with recent experience in Greece with Credit Agricole and Soc Gen. The NPL ratio is 31% (EUR 301 million), less than the 36.4% average for banks with foreign capital, and coverage of around 80%. From the 2016 audited annual accounts, the remaining 20% net of reserves NPL portfolio is covered 4 times by collateral. The most problematic loans population has been that of mortgages in foreign currency and it seems that Ukrsib has provisioned this part adequately. Mortgage Other Consumer Overdraf Other Total s mortgages loans ts loans Neither past due nor impaired High grade 0.2 5 0.1 508 513. 3 Medium grade 0 Low grade 4 4 Without ranking (up to 1 1 3 21 7 13.3 45.3 year) Without ranking (1-10 20 3 20 0.1 3 46.1 years) Without ranking (more 45 5 50 than 10 years) Total neither past due 66.2 15 41 7.2 529.3 658. nor impaired 7 Past due but not impaired 10 HOUSE_OVERSIGHT_026143