Expert-Rating reaffirmed the long-term credit rating of Agroprosperis Bank at the investment level based on 1Q 2018 results
On July 11, 2018, rating agency Expert-Rating reaffirmed the long-term credit rating of Agroprosperis Bank at uaAA level, which characterizes very high creditworthiness, and the rating of deposit reliability at the highest level ua1.
According to the results of the rating agency, during the whole period Agroprosperis Bank was provided with liquidity and regulatory capital at levels that significantly exceed not only the requirements of the NBU, but also average amounts throughout the banking system.
In the third quarter of 2017, Agroprosperis Bank reached profitability and has been continually showing a marked increase in net income resulting at UAH 2.37 million net profit in the 1 quarter of 2018.
In the opinion of the agency, Bank's loan portfolio has very high quality, because there are no loans to individuals, and the share of non-working loans to legal entities (NPL) as of May 1, 2018 amounted to a record 0.01% with the average value of the share of NPL in the banking system at 56%.
Bank operating hours in June
In connection with celebration of Constitution Day Agroprosperis Bank will work according to the following schedule:
23 June - workday till 4:45 pm;
28, 29 June – closed.
On other days Bank works as usual.
From July, 16 UAH deposit rates will be decreased
From July, 16 2018, Agroprosperis Bank decreases interest rates on individual deposits in UAH for a term of 9 and 12 months, namely:
• for the deposit "Classic" in UAH, the rate for the term of 9 months will be 15.5% per annum, for 12 months –16% per annum; • for the deposit "Capital" in UAH, the rate for the term of 9 months will be 15% per annum, for 12 months – 15.5% per annum; • for the deposit "Flexible" in UAH, the rate for the period of 9 months will be 14.5% per annum, for 12 months – 15% per annum.
Agroprosperis Bank and farm equipment dealer Agro-Temp introduced a new affiliate program
Agroprosperis Bank and farm equipment dealer Agro-Temp have signed a partnership agreement on special terms for purchasing farm equipment from well-known global brands for farmers with an area of land of 100 ha.
Farmers can buy equipment for a record term of up to 7 years and without a down payment if additional collateral is provided. Other benefits of the program are absence of collateral valuation and insurance, which reduces the cost of the loan, and the speed of decision-making – up to 7 business days.
"Our joint priority as partners is the high quality and convenience of customer service. Therefore, our affiliate program is characterized by favorable conditions and ease of cooperation: quick decision making, flexible repayment schedule and maximum mobility due to the presence of a bank’s personal manager and supplier’s mobile service teams," says Serhii Shchepanskyi, the Agroprosperis Bank Chairman of the Management board.
"Cooperation with Agroprosperis Bank is a completely new experience for us. We have not yet worked with partners who place theirs stake on the professionalism of mobile personal managers. Such an approach is consistent with our strategy, therefore we hope that together with the new partner our steps to modernize and improve agricultural machinery fleet of Ukrainian farmers will become at least twice as confident and effective,"says Serhii Lehostaiev, CEO of Agro-Temp.
For reference: Agro-Temp (www.agro-temp.com.ua) is an official dealer and service operator of agricultural machinery of leading world manufacturers, which works in the Ukrainian market since 2009. The assortment of equipment covers practically all types of agricultural production, while high quality and efficiency of service is provided by strict control of spare parts quality, the availability of an online store to expedite sales, as well as the work of mobile service teams.
NCH Capital (USA) increased Agroprosperis Bank’s charter capital by 50%
Agroprosperis Bank has successfully completed the procedure of increasing its charter capital up to UAH 310 million through an additional issue of shares.
On October 13, 2017 Agro Holdings (Ukraine) Limited, the Agroprosperis Bank shareholder, took the decision on additional shares placement and on November 28 transferred the necessary funds in the amount of UAH 100 million. The procedure was completed on May 17, 2018, as evidenced by the Stock Issue Registration Certificate issued by the National Securities and Stock Market Commission.
According to Serhii Shchepanskyi, Agroprosperis Bank Chairman of the Board, additional funds were raised in order to increase the financing of Ukrainian small and medium farmers. “Just this April we provided UAH 80 mln of financing to farmers and in total for this season we have doubled our agricultural loan portfolio,“ he said
The only shareholder of Agroprosperis Bank is Agro Holdings (Ukraine) Limited, which is indirectly owned by the fund NCH Agribusiness Partners II, L.P. The fund's investors are well-known international financial institutions, universities and pension funds of the United States and Europe, including the European Bank for Reconstruction and Development (EBRD). NCH Agribusiness Partners II, L.P. is a member of an investment funds group managed by NCH Capital Inc. (USA), which has been managing investments of $3 billion through 9 regional offices around the world since 1993.
KUHN and Agroprosperis Bank offer farmers a beneficial loan program of farm equipment acquisition
On May 2, 2018, Agroprosperis Bank and KUHN Ukraine entered into a partnership agreement of purchase KUHN farm equipment by small and medium-sized agricultural producers.
The key advantages of the partnership program are long-term financing – up to 7 years, as well as the speed of decision-making – no more than 3-5 working days. This program is available for farmers with a land area starting from only 100 hectares.
"I am sure that our programs with Agroprosperis Bank will be in great demand. For the last 3-4 years, agricultural producers with a land bank less than 1.5 thousand ha have scaled up their activities in purchasing farm equipment, which requires significant investments. The program is distributed to all KUHN Ukraine dealers," says Asad Lapsh, CEO of KUHN Ukraine. "We have been working with Agroprosperis for a long time. Last year, a large program of testing equipment on the Agroprosperis production companies’ fields was carried out. Not so many banks in Ukraine specialize in agribusiness."
According to Serhii Shchepanskyi, Agroprosperis Bank Chairman of the Board, the basic conditions that interest clients are time and money. "We offer a maximum term of up to 7 years, while the average financing term on the market is 5 years. Thanks to our program, the loan rates will be lower than in case of the classic bank financing of equipment. We will actively develop partnership programs with KUHN, because we are interested in our clients working on good equipment," said Serhii Shchepanskyi.
KUHN (www.kuhn.ua) is a big multinational corporation, a world-class farm machinery manufacturer with 10 factories situated in Europe, North and South America. The wide range of KUHN farm equipment meets all demands of Ukrainian farmers. Found in 1828.
Bank operating hours due to May Days
In connection with May Days in the period from April 28 till May 9 Agroprosperis Bank will work according to the following schedule:
28 April-01 May – closed;
02-04 May – working days;
05 May – workday till 4:45 pm;
06 May – closed;
07 May – working day;
08 May – workday till 5 pm;
09 May – closed;
From 10 May Bank works as usual.
Deposit rates have been raised
From April 5, 2018, Agroprosperis Bank increases interest rates on individual deposits in UAH for a term of 3 and 12 months, namely:
• for the deposit "Classic" in UAH, the rate for the term of 3 months increased from 12 to 14% per annum, for 12 months – from 16 to 16.5% per annum;
• for the deposit "Flexible" in UAH, the rate for the period of 3 months increased from 11 to 13% per annum, for 12 months – from 15 to 15.5% per annum;
• for the deposit "Capital" in UAH, the rate for the term of 3 months increased from 11.5 to 13.5% per annum, for 12 months – from 15.5 to 16% per annum.
Agroprosperis Bank 2017 results: 2.5 times growth of loan portfolio and return to profitability
On March 23, 2018, Agroprosperis Bank published its official financial statement for 2017, audited by the KPMG Audit Company.
According to the results of the year, bank substantially improved its financial performance by doubling the size of its assets and the portfolio of agribusiness loans. During the year, Agroprosperis Bank doubled its authorized capital and at the end of 2017 the Bank's equity capital amounted to UAH 303.590 million.
The most important achievement of the year was the return to profitability, indicating the completion of the bank's formation process, as the bank was acquired by a foreign investor in 2015, and in 2016 it began operating in the market according to the new business model – as the only bank that finances only small and medium-sized agricultural producers.
In 2017, Agroprosperis Bank expanded the range of services for farmers, increased the maximum amounts and terms of lending, and financed a third of all crop receipts issued in Ukraine, staying a leader among other banks in using this innovative tool.
Agroprosperis Bank also began to attract deposits from individuals, and during the year, vastly increased its deposit portfolio. The bank has been assigned a credit rating at the level uaAA, which characterizes very high creditworthiness, and the highest rating of reliability of deposits at the level ua1 on the national scale.
"In 2017, we achieved our goals and plan to grow even more actively this year. In January our net profit amounted to UAH 2.6 million. The loan portfolio has been growing, we are expanding the regions of agricultural financing and working on partnership programs", – says Serhii Shchepanskyi, the Chairman of the Management Board of Agroprosperis Bank.
Expert-Rating assigned a long-term credit rating to Agroprosperis Bank at the investment level and the highest deposit rating
On March 22, 2018, rating agency Expert-Rating reaffirmed the long-term credit rating of Agroprosperis Bank at uaAA level, which characterizes very high creditworthiness, and the rating of deposit reliability at the highest level ua1.
According to the results of the rating agency, in 2017 Agroprosperis Bank showed a marked increase in net income; in particular, the net interest income of the bank increased 1.5 times, and net commission income increased almost 3 times compared to the results for 12 months of 2016. In the third quarter of 2017, Agroprosperis Bank reached profitability and received an annual profit of UAH 6.392 million.
In the opinion of the agency, Agroprosperis Bank during the whole period was provided with liquidity and regulatory capital at levels that significantly exceed not only the requirements of the NBU, but also average amounts throughout the banking system.
In particular, it should be noted that in the Bank's portfolio there were no loans to individuals, and the share of non-working loans to legal entities (NPL) as of February 1, 2018 amounted to an unprecedented 0.02% with the average value of the share of NPL in the banking system at 57.57%. This indicates the very high quality of the loan portfolio of Agroprosperis Bank.
Hours of operation in 2018
According to the Decision of the Board of the National Bank of Ukraine No89-rs of February 13, 2018, "On the Rules of Work of the Electronic Payment System of the National Bank of Ukraine and the Banking System of Ukraine in connection with the transfer of working days in 2018", in 2018 Agroprosperis Bank will work according to the following schedule:
Working days and hours of operation:
- Saturday, March 03 to 16-00
- Saturday, May 05 to 16-45
- Saturday, June 23 to 16-00
- Saturday, December 22 to 16-45
- Saturday, December 29 to 16-45
- Friday, March 09
- Monday, April 30
- Friday, June 29
- Monday, December 24
- Monday, December 31.
Changes in Cashier’s operation hours
Starting from 21.02.2018, Cashiers on 27-T, Dehtiarivs’ka Str. operates according to the following schedule:
Monday - Thursday from 9:00 to 17:00
Friday from 9:00 to 16:00
The first crop receipt in Rivne region was financed by Agroprosperis Bank
On February 6, 2018, Agroprosperis Bank and Mizotske RTE signed the first crop receipt in Rivne region for UAH 1.39 mln, secured by the future corn harvest of 2018.
Mizotske RTE has been a regular client of Agroprosperis Bank for the past three years and has repeatedly received financing from the bank on a pledge of the future harvest. The enterprise cultivates 900 hectares of land, sows high quality seeds of imported hybrids and uses the modern technology of crops growing.
"Everything new is always interesting, and you want to try it, - says Yuri Sosiuk, financial director of the borrower company. - We have been working with Agroprosperis Bank for two years and believe that it effectively cooperates with its clients and quickly takes decisions. Agroprosperis Bank has significant experience in crop receipts; therefore, as soon as this tool began to operate in our area, we immediately issued it. We are particularly grateful to the bank’s regional manager Nazarii Bilash for the assistance and support in signing the crop receipt."
According to the chairman of the management board of Agroprosperis Bank Serhii Shchepanskyi, Mizotske RTP sows high quality imported seeds and adheres to the modern technology of growing crops, and for the bank the level of agricultural technology of the borrower is an important factor. "We are ready to finance farms with high culture of production and an impeccable business reputation on the pledge of a future harvest that has not even been sown. And a crop receipt is the only tool that makes it possible. Therefore, we support the extension of the project of crop receipts overall Ukraine", - said Serhii Shchepanskyi.