SCM Group's banks to increase market share in terms of assets to over 5% by 2015

Kyiv, April 13 (Interfax-Ukraine) – The banks that are part of the SCM Group - the First Ukrainian International Bank (FUIB), Dongorbank (both based in Donetsk) and Bank Renaissance Capital (Kyiv) - plan to increase their market share in terms of assets to over 5% by early 2015, FUIB Board Chairman Konstantin Waysman said at a press conference at Interfax-Ukraine on Tuesday.

"Today our share in assets is around 3%. We want to achieve a share of more than 5% and enter the top five [of the largest banks in terms of assets] by early 2015," he said.

He said that the share of clients' funds in the liabilities of group's banks should grow from 45% to 76% in five years, and the share of borrowing on the international markets will reach some 20-22%.

Commenting on the forecasts for profitability, Waysman said that they want to achieve a return on capital of over 20% by the start of 2015.

He said that around 10% of SCM's profit would come from the banking business.

He added that the SCM banking group plans to actively develop the retail business direction: the retail crediting share of the credit portfolio by early 2015 is to grow from 25% to over 40%. This year mortgage and car crediting will be resumed.

Commenting on a deal for the purchase of Bank Renaissance Capital by SCM Group, Waysman said that the bank will be a separate company, while FUIB and Dongorbank will finalize a merger this year.

"We'll be engaged in [consumer crediting] only through the acquisition, so we bought a separate bank with its own team, its own [technological] platform and risk assessment methods… [and] of course, the bank will have its own brand," the banker said.

SCM's banking business in Ukraine includes FUIB and Dongorbank, which assets as of January 1, 2011 came to UAH 18.098 billion and UAH 10.141 billion (13th and 22nd respectively).

Renaissance Capital Bank was established in 2005, operating in Ukraine under the Renaissance Credit brand. As of January 1, 2011, its assets came to UAH 531 million (122nd).