Denis Gorbunenko: Sale of Idea Bank is an indicator of strengthening of Ukrainian capital in the banking sector

The sale of Idea Bank in Ukraine, to TAS Group by the Polish company Getin Holding is a landmark event for the Ukrainian financial market. Most importantly,  it illustrates a  strengthening trend regarding the position of Ukrainian capital in the banking sector.

This opinion was expressed by the banker, financier and investor Denis Gorbunenko in his blog on LinkedIn.

‘The sale of a bank with foreign capital to a Ukrainian owner is an indicator that it is banks with local capital that demonstrate greater resilience and flexibility in times of war,’ Gorbunenko said. ’Ukrainian banks are ready to take on greater risks and continue to develop, foreign players who are choosing a more balanced strategy and invest in risk-free assets.’

According to the expert, the National Bank of Ukraine's data confirms that banks with Ukrainian capital are more actively expanding their loan portfolios, while foreign financial institutions are focusing their investments on risk-free assets such as government bonds or NBU certificates of deposit. The share of Ukrainian banks in the banking system's asset structure is growing steadily, even when state-owned banks are excluded.

At the same time, Gorbunenko believes that a mass exodus of foreign banks from the Ukrainian market should not be expected in the near future. ‘This (foreign banks leaving the market - ed) is unlikely. First and foremost, it is a question of price, namely the willingness of foreign entities to sell the Ukrainian assets in which they have invested considerable funds in recent years,’ he said. According to Gorbunenko, the ball is in the court of Ukrainian players, and ‘they have every chance to significantly strengthen their positions and gain new customers.’

As a reminder, after the Polish authorities carried out a forced restructuring of Idea Bank S.A., also owned by Getin Holding, in January 2021, the National Bank of Ukraine ordered  the Polish shareholders of Idea Bank to sell the Ukrainian asset within six months. The Polish bank was transferred to one of the country's largest financial institutions, Bank Pekao S.A.

Denis Gorbunenko is an entrepreneur, banker, financier and investor. At one time, he managed the largest banks in Ukraine. For the last 15 years, he has been engaged in international investment activities, mainly in the financial and banking sector and the property market in the UK and EU countries.