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1.36 MB
Extraction Summary
1
People
4
Organizations
1
Locations
1
Events
2
Relationships
4
Quotes
Document Information
Type:
Financial analysis report / internal memo
File Size:
1.36 MB
Summary
This document appears to be a page from a financial analysis or due diligence report (page 17) marked with a House Oversight stamp. It details regulatory capital figures as of December 31, 2016, and includes an analyst's commentary on the potential acquisition or market position of Raiffeisen bank in Ukraine compared to Ukrsib. The text discusses EBRD's unusually high 40% equity stake and the author's intent to meet with EBRD to determine BNP's future intentions in the region.
People (1)
| Name | Role | Context |
|---|---|---|
| Unidentified Analyst | Author |
Author of the report written in the first person ('I will meet with EBRD...').
|
Organizations (4)
| Name | Type | Context |
|---|---|---|
| Raiffeisen |
Mentioned as having undergone a sales process twice; equity valued at EUR 350 million.
|
|
| Ukrsib |
Used as a benchmark for market share comparison.
|
|
| EBRD |
European Bank for Reconstruction and Development. Holds a 40% equity stake (likely in the entity associated with BNP/...
|
|
| BNP |
BNP Paribas. The analyst intends to find out their intentions regarding their 'Ukrainian presence'.
|
Timeline (1 events)
Approx 2013-2014
Raiffeisen sales process (last one being 3 years prior to the report context).
Ukraine (Implied)
Locations (1)
| Location | Context |
|---|---|
|
Implied by 'Ukrainian presence' and 'Ukrsib'.
|
Relationships (2)
Text discusses EBRD's 40% stake in context of BNP's Ukrainian presence.
Comparison of market share and equity investment value.
Key Quotes (4)
"Due to the large interest margins and the high commissions, the capital to be created from profits is growing faster than the reduction of the capital contributed by the subordinated debt."Source
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Quote #1
"I still consider the amount of its equity at EUR 350 million a very large amount to invest for gaining 0.8% more market share than that of Ukrsib."Source
HOUSE_OVERSIGHT_026150.jpg
Quote #2
"From what I know EBRD’s 40% is considered exceptionally high as equity participation percentage comparing to their usual 10-15%"Source
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Quote #3
"I think it is too early to discuss potential price but having EBRD inside already I would assume that 1x less due diligence adjustments should be the maximum"Source
HOUSE_OVERSIGHT_026150.jpg
Quote #4
Full Extracted Text
Complete text extracted from the document (1,427 characters)
Regulatory Capital
€mn
€mn
31 December
2016
2016
Tier 1
146,079
146,079
Additional Capital-Sub Debt
72,515
72,515
Deductions
-12,167
-12,167
Total Regulatory Capital
206,427
206,427
CAD Ratio
21.37%
21.37%
Implied RWA
965,965
965,965
Regulatory Capital excluding
Additional
133,912
Additional
133,912
CAD Ratio Adjusted
13.86%
13.86%
Due to the large interest margins and the high commissions, the capital to be created from profits is growing faster than the reduction of the capital contributed by the subordinated debt.
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Although Raiffeisen has already undergone a sales process twice, the last being 3 years ago, without success, I still consider the amount of its equity at EUR 350 million a very large amount to invest for gaining 0.8% more market share than that of Ukrsib.
This information is as much I could gather but I will meet with EBRD for other reasons and will try to extract more information mostly on the intentions of BNP in dealing with their Ukrainian presence. From what I know EBRD’s 40% is considered exceptionally high as equity participation percentage comparing to their usual 10-15% and most probably they would be willing to listen to exit scenarios, possibly remaining as shareholders at a lower percentage.
I think it is too early to discuss potential price but having EBRD inside already I would assume that 1x less due diligence adjustments should be the maximum,
17
HOUSE_OVERSIGHT_026150
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