The Cabinet estimated the cost of sale of PrivatBank

PrivatBank plans to privatize in 2022.

The Bank’s development strategy envisages its sale in 2022. The Cabinet has calculated the potential cost of the institutions by that time.

The Cabinet was estimated at 40-65 billion cost of PrivatBank by 2022. Score was calculated for the Bank’s development strategy until 2022, transfer Ukrainian news.

The document notes that from December 2016 the government has already capitalized on Privat 155,4 billion.

“Sales multiplier (price/cost of capital) can range from 1.4 times to development as a universal Bank to 1.8 at a concentration Bank on payments, liquidity and the rejection of all risk operations”, – is spoken in the calculations.

While PrivatBank will base its work on the scheme “balanced development of a selective approach to corporate clients.” According to this scheme of work assumes the preservation of the Bank’s share in the market of lending to individuals (35%), the increase in the share of lending to small and medium-sized businesses (from 5% to 15%) and corporate clients (from 1% to 5%).

This scheme of realization of strategy assumes that the value of the Bank by 2022 will amount to 62 billion hryvnia, and the multiplier of the sales will be 1.7.

However, the total dividends from the sale of the Bank may bring to the state about 19 billion until 2022.

This option strategy involves the Bank’s net profit in 2022 at the level of 8 billion hryvnia, and profitability capital of 25%.

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