Privatbank's updated strategy aims to improve the operating system and strengthen its investment attractiveness

On August 11, 2021, the Cabinet of Ministers has approved the Development Strategy of the Joint-Stock Company Commercial Bank 'PrivatBank' till 2024.

The reason for the renewal of the Strategy of PrivatBank was the necessity of further development of its core business potential, improvement of its operations, and increase of its investment attractiveness.

The Development Strategy of the Bank adopted by the Government has the following key components:

• business model: the leading bank in the retail market segment with a strong position in small and medium-sized businesses;
• operating model: progressive with the leading level of efficiency and readiness for margin reduction;
• financial strength: efficient management of NPL portfolio, operational efficiency, and constant level of profitability of the Bank;
• Bank's targets till 2024: forecasted net profit >UAH 30 billion, return on equity >40%, and cost-to-income ratio.

Thus, the renewal of PrivatBank's Strategy will release the real value of the core business with maximization of dividends and privatization potential, provides for:

• creating a strong competitive bank;
• ensuring the ability to pay dividends and financial stability;
• transforming the bank into an attractive investment target.

The strategy takes into account the strategic reform of the public banking sector for the period up to 2024.