Cabinet of Ministers of Ukraine Approved Development Strategy of JSC "State Savings Bank of Ukraine" for 2021-2024

The Cabinet of Ministers of Ukraine approved the Development Strategy of JSC "State Savings Bank of Ukraine" for 2021 - 2024. The draft Strategy was developed by the Board and approved by the Supervisory Board of Oschadbank.

"Approval of the Development Strategy of the Oschadbank will ensure its proper functioning, promote effective management, protect the rights of depositors, creditors, and the state as a shareholder. One of the priorities of the government is the reformation of the state banking sector. The Ministry of Finance is taking purposeful steps to build a reliable and competitive banking system," commented Deputy Minister of Finance of Ukraine for European Integration Yuriy Draganchuk.

The Development Strategy of Oscadbank for 2021 - 2024 stipulates the continuation of its functioning as the leading universal bank in Ukraine, above all, the following main components are defined:

• business model: a universal bank that strengthening its position in retail lending and commission-based products, while maintaining a leading position in the segments of corporate business and micro, small and medium businesses, with a decreasing share of state-owned enterprises;
• operating model: developed line of digital products, including industry-specific products to be delivered through digital channels and automated processes;
• financial sustainability: operational efficiency and a constant level of profitability of Oschadbank.

In the adopted Strategy it is noted that Oschadbank will strive to achieve a projected net profit of about UAH 4.2 billion, return on equity - about 15%, and the cost to income ratio - less than 65%.

Due to effective NPL management Oschadbank will settle the level of NPLs and consistently reduce their share to 10%.

Also, the Strategy determines Oschadbank to reduce the level of operating costs and review capital expenditures by optimizing the network and centralizing operations.

Digitization of Oschadbank until 2024 includes the completion of digitalization of services for clients and internal processes, as well as ensuring a competitive speed of launching new products.

In addition, Oschadbank is expected to join the Deposit Guarantee Fund, which in the future will ensure the entry of international financial institutions to the capital of Oschadbank.

The government decision was made under the Law of Ukraine "On Banks and Banking".