The Finance Ministry of Ukraine has approved a development strategy for PrivatBank (Kyiv) until 2022, the bank has said in a press release.

"Acting Finance Minister Oksana Markarova signed an order approving the development strategy of PrivatBank earlier endorsed by the independent supervisory board of the financial institution," the bank said.

The document, in particular, provides for the introduction of an effective risk management system, addressing the problem of non-performing loans, as well as a number of organizational and management changes aimed at increasing efficiency and reducing costs.

"The approved strategy is based on dynamic forecasts of market growth, so the bank will be as flexible as possible in its efforts to stimulate the retail segment and lending to small and medium-sized enterprises. Cautious participation in the corporate segment will allow establishing an optimal balance between financial attractiveness and risks," the press service said, citing Chairman of the supervisory board of PrivatBank Engin Akcakoca.

The strategy provides that in 2022 PrivatBank would have UAH 8.4 billion of net profit and would be ready for the fact that the state would withdraw from its capital. Total income for the shareholder in the period from 2018 to 2022 will be UAH 81 billion, without taking into account the funds that PrivatBank intends to return in courts.

"We believe that the practical implementation of the provisions of the strategy will strengthen the merits of the bank and its positions in the market, ensuring an acceptable level of profitability equaling profits of the best players. The independent supervisory board of the bank will be the guarantor of implementation of the approved development strategy," the bank said, citing Markarova as saying.