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}}[[File:98 Horodotska Street, Lviv (01).jpg|thumb|PrivatBank branch in [[Lviv]], 2015]]
}}[[File:98 Horodotska Street, Lviv (01).jpg|thumb|PrivatBank branch in [[Lviv]], 2015]]


'''PrivatBank''' (Ukrainian: ПриватБанк) is the largest Ukrainian bank in terms of assets and the leader of Ukrainian retail banking market. It was registered on 19 March 1992. PrivatBank was one of the first to introduce modern [[digital banking]] and unique technological solutions in [[Ukraine]], allowing customers to use most services remotely by means of Privat24. The initiator of the creation of the bank was Ukrainian businessman and politician [[Serhiy Tihipko]] who was also its first chairman of the board.
'''PrivatBank''' (Ukrainian: ПриватБанк) is the largest bank in Ukraine by assets. It was formed on 19 March 1992 and has been owned by the [[Government of Ukraine]] since 2016. In early 2024, it was confirmed by the [[National Bank of Ukraine]] as one of the country's [[systemically important bank]]s.<ref>{{cite web |website=National Bank of Ukraine |url=https://bank.gov.ua/en/news/all/natsionalniy-bank-pidtverdiv-status-sistemnoyi-vajlivosti-dlya-15-bankiv |date={{date|2024/03/05}} |title=NBU Confirms Systemic Importance of 15 Banks}}</ref>


According to results of 2021, PrivatBank's liquid assets amounted to ₴296.4&nbsp;billion. PrivatBank has the second-largest network of branches and the largest network of ATMs and terminals among [[List of banks in Ukraine|Ukrainian banks]]. As of July 2022, more than 6,000 ATMs, 10,000 payment terminals and more than 200,000 [[Payment terminal|POS terminals]] are operating in the network. The national banking service network of PrivatBank includes approximately 1,200 branches. PrivatBank is the largest issuer and acquirer of electronic payment means in Ukraine. The Bank owns PrivatMoney (money transfer system), Privat24 and LiqPay (most popular payment services in Ukraine).
PrivatBank has the second-largest network of branches and the largest network of ATMs and terminals among [[List of banks in Ukraine|Ukrainian banks]]. As of July 2022, more than 7,000 ATMs, 11,000 payment terminals and more than 250,000 [[Payment terminal|POS terminals]] are operating in the network. The national banking service network of PrivatBank includes approximately 1,200 branches. PrivatBank is the largest issuer and acquirer of electronic payment means in Ukraine. The bank operates several payment services including Privat24 and LiqPay.


PrivatBank was the first in Ukraine to connect [[Google Pay Send|Google Pay]] and [[Apple Pay]] payment services.
It is notable for being the first bank to introduce [[digital banking]] services to Ukraine. PrivatBank was the first in Ukraine to connect [[Google Pay Send|Google Pay]] and [[Apple Pay]] payment services.


According to the British magazine [[The Banker]], in 2016 PrivatBank ranked 16th among the largest banks in Central and Eastern Europe and 627th among the top 1000 global banks.<ref>{{Cite web |title=On December 18th, 2016 a new history of PrivatBank began |url=https://en.privatbank.ua/ |access-date=2024-01-11 |website=en.privatbank.ua |language=en}}</ref>
Until 2016, the Bank belonged to the Privat Group – a financial and industrial group belonging to Ukrainian oligarchs [[Ihor Kolomoyskyi|Ihor Kolomoiskyi]] and [[Gennadiy Bogolyubov]]. In December 2016, due to capital problems, a decision was made to pass PrivatBank into [[state ownership]]. Since then, the institution has been fully owned by the State.

PrivatBank is one of the systemically important banks in Ukraine.


==History==
==History==
{{unsourced section|date=December 2023}}
PrivatBank is one of the first private [[commercial bank]]s established in Ukraine. Decision on PrivatBank establishment was taken at the meeting of its founders on 7 February 1992.
PrivatBank is one of the first private [[commercial bank]]s established in Ukraine. Decision on PrivatBank establishment was taken at the meeting of its founders on 7 February 1992.


On 19 March 1992, the Bank was registered by the State. [[Serhiy Tihipko|Serhii Tihipko]] was one of the founders and the first Chairperson of the management board. At the very beginning, PrivatBank had only one office and a few computers. PrivatBank was the first in Ukraine to introduce [[Debit card#Plastic card|plastic cards]] and ATMs.
On 19 March 1992, the Bank was registered by the Stateas a commercial bank in the form of a limited liability company. At the very beginning, PrivatBank had only one office and a few computers. PrivatBank was the first in Ukraine to introduce [[Debit card#Plastic card|plastic cards]] and ATMs.


In 1996 PrivatBank became a full member of [[Visa Inc.|Visa International]] (payment system) and launched a large-scale plastic cards issuance. In 1997 PrivatBank became the first Ukrainian bank to obtain a Thomson BankWatch rating statement (an international rating agency) and became a full member of the [[Europay International|Europay]] payment system. In 1998 the Bank obtained a credit rating from [[Fitch Ratings|Fitch IBCA]].
In 1995, PrivatBank was given permission to be one of two banks privileged to allow anonymous hard currency accounts, by presidential decree.
<ref>https://www.mondaq.com/antitrust-eu-competition-/1035/two-ukrainian-banks-licensed-to-operate-anonymous-accounts</ref>


On 6 July 2000, PrivatBank shareholders decided to reorganize the Bank from a [[limited liability company]] to a closed [[joint-stock company]]. The Charter of the Closed Joint-Stock Company Commercial Bank "PrivatBank" was registered on 4 September 2000.
In 1996 PrivatBank became a full member of [[Visa Inc.|Visa International]] (payment system) and commenced a large-scale issuance of plastic cards.


The launch of the Privat24 project was a significant event in the Ukrainian banking system in 2001. Customers were able to manage their accounts online, make regular payments, transfer funds, etc. In February 2002, PrivatBank emitted its millionth plastic card.
In 1997 PrivatBank became the first Ukrainian bank to obtain a Thomson BankWatch rating statement (an international rating agency) and became a full member of the [[Europay International|Europay]] payment system.


In 2003, the [[Western Union]] system recognized PrivatBank as the best bank in terms of customer service quality. The Bank also obtained the STP Excellence Award from [[Deutsche Bank]].
In 1998 the Bank obtained [[Fitch Ratings|Fitch IBCA]] rating statement (an international rating agency). In November 1998, the Bank won a tender and was selected as a servicing bank authorized to perform payments of the Swiss [[The Holocaust|Holocaust]] Memorial Fund in Ukraine.


In 2009, the Bank changed its organizational and legal form to a public joint-stock company.
In 2000 the Bank joined the group of banks authorized to pay compensation to Ukrainian citizens who suffered from Nazi persecution during [[World War II|the Second World War]]. Also, in the same year, the organizational and legal form of PrivatBank changed: on 6 July, PrivatBank shareholders made a decision to reorganize the Bank from a [[limited liability company]] to a closed [[joint-stock company]]. The Charter of the Closed Joint-Stock Company Commercial Bank "PrivatBank" was registered on 4 September 2000.


In June 2018, the Bank changed its organizational and legal form from a public joint-stock company to a joint-stock company.
The launch of the Privat24 project was a significant event in the Ukrainian banking system in 2001. Customers were able to manage their accounts online, make regular payments, transfer funds, etc.

In February 2002, PrivatBank issued its millionth plastic card.

In 2003, the [[Western Union]] system recognized PrivatBank as the best bank in terms of customer service quality. The Bank also obtained the STP Excellence Award from [[Deutsche Bank]], which confirmed the professionalism of PrivatBank in international settlements.

According to the decision of the [[shareholder]]s at the meeting on 30 April 2009, the Bank's activities were brought into line with the [[Law of Ukraine]] "On Joint-Stock Companies": corresponding changes were made to the Bank's Charter, and the type of the Bank was changed to a public joint-stock company. In addition, the name of the Bank was changed to Public Joint-Stock Company Commercial Bank "PrivatBank". These changes took effect on 21 July 2009.

In 2010, the Bank initiated the creation of the charity foundation which is called "Helping is easy!"

On 28 September 2015, the [[S&P Global Ratings|Standard&Poor's]] rating agency raised PrivatBank's long-term and short-term foreign currency ratings from SD to SS/C.


=== Nationalisation ===
=== Nationalisation ===
On 18 December 2016 the [[Deposit Guarantee Fund]] (DGF) appointed a temporary administrator to manage the activities of PJSC CB "PrivatBank" in accordance with the decision of the [[National Bank of Ukraine]] to classify the Bank as insolvent.
To prevent the destabilization of the financial system of Ukraine, to ensure the protection of depositors’ rights, and taking into account the systemic importance of PrivatBank, the State acquired the ownership of 100% of the Bank's shares in accordance with the procedure established by law on 21 December 2016, taking into account the decision of the [[National Security and Defense Council of Ukraine]] dated 18 December 2016 "On urgent measures to ensure the national security of Ukraine in the economic sphere and protect interests of depositors" that was put into effect by the Decree of the President of Ukraine No. 560/2016 as of 18 December 2016.


On 19-21 December 2016, in accordance with the provisions of the Law of Ukraine “On the Deposit Guarantee System”, the DGF dismissed the Bank's Management and Supervisory Board and was solely responsible for managing the Bank's activities during these three days. The DGF recognized the impairment of loans and advances to customers in the amount of UAH 155,764 million and converted UAH 10,934 million of customer funds, UAH 10,721 million of issued Eurobonds and UAH 7,783 million of subordinated debt into authorized capital of the Bank (‘bail in’). On 21 December 2016, after the bail in, the Bank's shares were sold for UAH 1 to the [[Ministry of Finance (Ukraine)|Ministry of Finance of Ukraine]]. In December 2016, the Ministry of Finance decided to increase the authorized capital of the Bank by UAH 116,800 million and by further UAH 38,565 million in June 2017. Subsequently, the Ukrainian state has owned 100% of the shares of the authorized capital.
Currently, as of 27/02/23, the State is the only shareholder of the Bank, that owns 100% of the shares of the authorized capital. The functions of managing the corporate rights of the State in the Bank are carried out by the [[Government of Ukraine|cabinet of Ukraine]], which also performs functions of the Supreme body of the Bank.


=== Forensic audit ===
== Operations ==
{{unsourced section|date=May 2024}}
The [[National Bank of Ukraine]] instigated a forensic audit by New York-based corporate investigations specialists [[Kroll Inc.]] It reported in that "PrivatBank was subjected to a large scale and coordinated fraud over at least a ten-year period ending December 2016, which resulted in the Bank suffering a loss of at least USD 5.5&nbsp;billion." It also stated that 95% of corporate lending had been to "parties related to former shareholders and their affiliates".<ref name=reuters-20180116>{{cite news |url=https://www.reuters.com/article/us-global-oil/oil-ends-higher-after-volatile-trade-on-dollar-libya-output-idUSKBN1FB03Q |title=Ukraine central bank says PrivatBank was used for shady deals, money-laundering |last=Zinets |first=Natalia |work=Reuters |date=16 January 2018 |accessdate=23 January 2018 |archive-date=23 January 2018 |archive-url=https://web.archive.org/web/20180123011220/https://www.reuters.com/article/us-global-oil/oil-ends-higher-after-volatile-trade-on-dollar-libya-output-idUSKBN1FB03Q |url-status=live }}</ref><ref name=bank-20180116>{{cite press release |url=https://bank.gov.ua/control/en/publish/article?art_id=62425322&cat_id=76291 |title=Kroll confirms: before nationalisation PrivatBank was subjected to a large scale and coordinated fraud, which resulted in a loss of at least USD 5.5 billion |publisher=National Bank of Ukraine |date=16 January 2018 |accessdate=23 January 2018 |archive-date=24 January 2018 |archive-url=https://web.archive.org/web/20180124010339/https://bank.gov.ua/control/en/publish/article?art_id=62425322&cat_id=76291 |url-status=live }}</ref>
The Bank is a universal Bank that focuses on the retail segment, actively promoting services for small and medium businesses and selectively working in the corporate sector.


Almost 19&nbsp;million Ukrainians regularly use the services of PrivatBank, and there are currently 15&nbsp;million customers of Privat24 digital banking.
=== Technical Failures ===
Cyber ​​attack of 2022

On February 15, 2022, as a result of a [[2022 Ukraine cyberattacks|massive cyber attack]], the websites of PrivatBank and [[State Savings Bank of Ukraine|Oschadbank]], the website of the Ministry of Internal Affairs and a number of other websites were down for several hours.

== Customers ==
The bank is a universal bank that focuses on the retail segment, actively promoting services for small and medium businesses and selectively working in the corporate sector.

More than 25&nbsp;million people have used the services of PrivatBank at least once in their lives, which is in Ukraine. Almost 19&nbsp;million Ukrainians regularly use the services of PrivatBank, and there are currently 15&nbsp;million customers of Privat24 digital banking.

The majority of corporate customers are small- and medium-sized enterprises. Special attention is paid to the service of network corporations.


The sectoral characteristics of the Bank's customer base show that a large part comprises trade and commercial enterprises. A significant share of corporate customers are enterprises in the food, transport, agricultural, and construction industries.
The sectoral characteristics of the Bank's customer base show that a large part comprises trade and commercial enterprises. A significant share of corporate customers are enterprises in the food, transport, agricultural, and construction industries.


=== Service innovations ===
The Bank is the leader among Ukrainian banks regarding the number of customers: its services are used by half of the Ukrainian population. As of 2021, the Bank served 818,000 entrepreneurs and almost 18 million private individuals. The volume of individual deposits attracted by PrivatBank in 2021 amounted to ₴312.7&nbsp;billion.
{{unsourced section|date=December 2023}}[[File:Universal Card PrivatBank.jpg|thumb|Debit card issued by PrivatBank]]

In 1999, the Bank launched [[SMS banking|SMS-banking]], and in 2000, it introduced dynamic one-time [[One-time password|OTP passwords]] by linking the card to a mobile phone number.
==Innovations==
[[File:Universal Card PrivatBank.jpg|thumb|Debit card issued by PrivatBank]]
PrivatBank is known for its innovations. In 1999, the Bank launched [[SMS banking|SMS-banking]], and in 2000, it introduced dynamic one-time [[One-time password|OTP passwords]] by linking the card to a mobile phone number.


In 2001, PrivatBank launched the Privat24 digital banking system. As of June 2022, 18 million people use the Privat24 digital banking system.
In 2001, PrivatBank launched the Privat24 digital banking system. As of June 2022, more than 15 million people use the Privat24 digital banking system.


And in 2002, the Bank introduced [[Document management system|electronic document management]].
And in 2002, the Bank introduced [[Document management system|electronic document management]].
Line 120: Line 97:
2019 was marked in the history of innovations by the updated Privat24. Beyond that, FacePay24 technology – payment by face – became available to bank customers for the first time in Ukraine. The Bank also implemented a number of digital services:
2019 was marked in the history of innovations by the updated Privat24. Beyond that, FacePay24 technology – payment by face – became available to bank customers for the first time in Ukraine. The Bank also implemented a number of digital services:


* tips paid via POS terminal;
* tips paid via [[Payment terminal|POS terminal]];
* compulsory [[Automobile products liability|automobile liability]] insurance policies in Privat24;
* compulsory [[Automobile products liability|automobile liability]] insurance policies in Privat24;
* [[digital card]] and digital skins in Privat24;
* [[digital card]] and digital skins in Privat24;
* PrivatPay is a new online payment method.
* PrivatPay is a new [[online payment]] method.


In 2020, PrivatBank launched the "Money at the cash register" service that allows to receive cash at store cash registers. Besides, the Bank has the first biometric POS terminals in Ukraine.
In 2020, PrivatBank launched the "Money at the cash register" service that allows to receive cash at store cash registers. Besides, the Bank has the first biometric POS terminals in Ukraine.
Line 137: Line 114:
PrivatBank earned a profit of ₴35.050&nbsp;billion according to the official data of the [[National Bank of Ukraine]] in 2021.
PrivatBank earned a profit of ₴35.050&nbsp;billion according to the official data of the [[National Bank of Ukraine]] in 2021.


Below is information on the Bank's equity, assets, and net profit for the past 15 years. More detailed financial indicators of the Bank can be found on the Bank's website in the section. About the Bank – Financial reporting.
Below is information on the Bank's equity, assets, and net profit for the past 15 years. More detailed financial indicators of the Bank can be found on the Bank's website in the section About the Bank – [https://privatbank.ua/about/finansovaja-otchetnost Financial reporting].
{| class="wikitable"
{| class="wikitable"
|'''Year'''
! Year
|'''Own capital, UAH billion'''
! Own capital, UAH billion


'''(at the year-end)'''
'''(at the year-end)'''
Line 250: Line 227:
|150.879
|150.879
|}
|}

== Ownership structure ==
On 1 January 2022, the Bank's shareholders are (according to the final aggregate share):
{| class="wikitable"
|'''Shareowner'''
|'''Percentage of shares'''
|-
|The State is represented by the Cabinet of Ministers of Ukraine
|100%
|}

==Social projects==

In January 2011, PrivatBank within 24 hours arranged fee-free fundraising campaign to aid [[Domodedovo International Airport|Domodedovo]] explosion victims (Moscow, Russian Federation). Only in Ukraine over ₴105 thousand was raised.<ref>{{cite web |url=http://www.kyivpost.com/news/nation/detail/95851/ |title=Ukrainians send money for Domodedovo blast victims, KyivPost, 28 Jan 2011 |work=Kyiv Post |date=28 January 2011 |accessdate=5 May 2013 |archive-date=11 February 2011 |archive-url=https://web.archive.org/web/20110211130848/https://www.kyivpost.com/news/nation/detail/95851/ |url-status=live }}</ref>

==International presence==
International PrivatBank network comprises such bank partners as MoscomPrivatBank ([[Russian Federation]]), [[PrivatBank (Latvia)|AS PrivatBank (Latvia)]],<ref name="Collier">{{cite news|last1=Collier|first1=Mike|title=A guide to the rest of Latvia's non-resident banks|url=https://eng.lsm.lv/article/features/features/a-guide-to-the-rest-of-latvias-non-resident-banks.a271035/|accessdate=18 March 2018|publisher=[[Public Broadcasting of Latvia]]|date=12 March 2018|archive-date=18 March 2018|archive-url=https://web.archive.org/web/20180318120445/https://eng.lsm.lv/article/features/features/a-guide-to-the-rest-of-latvias-non-resident-banks.a271035/|url-status=live}}</ref> AS PrivatBank<ref>{{Cite web |url=http://www.privatbank.pt/ |title=privatbank.pt |access-date=1 March 2011 |archive-date=11 May 2011 |archive-url=https://web.archive.org/web/20110511223216/http://www.privatbank.pt/ |url-status=live }}</ref> ([[Portugal]]) and TaoPrivatBank ([[Georgia (country)|Georgia]]).<ref>{{cite web |url=http://www.kyivpost.com/news/business/bus_general/detail/27185/ |title=PrivatBank expands into Georgia, KyivPost, 9 Aug 2007 |work=Kyiv Post |date=9 August 2007 |accessdate=5 May 2013 |archive-date=4 February 2011 |archive-url=https://web.archive.org/web/20110204200011/https://www.kyivpost.com/news/business/bus_general/detail/27185/ |url-status=live }}</ref> In addition, PrivatBank has branches and representative offices in twelve countries around the world, including Italy, [[Cyprus]], Great Britain, Spain and China.

On 16 August 2007, the name of [[PrivatBank (Latvia)|PrivatBank's Latvian subsidiary]], AS Banka Paritāte, was officially changed to '''AS PrivatBank''' as part of a strategy to strengthen the banking group's regional brand recognition.<ref>{{cite web |url= http://www.paritate.lv/en/news/2007/august/news2007-08-007/ |title= AS PrivatBank press release |accessdate= 1 February 2008 |date= 17 August 2007 |archive-url= https://web.archive.org/web/20071022001937/http://paritate.lv/en/news/2007/august/news2007-08-007/ |archive-date= 22 October 2007 |url-status= dead }}</ref>

== Management of the Bank ==
The Cabinet of Ministers of Ukraine represents the executive body of the Bank, which carries out current management of the Bank's activities, which is the Management B Chairperson, and members of The Supervisory Board appoints the chair and members of the Bank's Management Boarders. There are 11 Management Board Committees that were established and that operate in the Bank:

*Budget Committee
* Compliance and Financial Security Committee
* Assets and Liabilities Management Committee
* Banking Products and Tariffs Committee
* Change Management Committee
* Operational Risk and Information Security Committee
* Credit Committee
* Marketing and PR Committee
* Tender Committee
* Technological Committee
* Non-performing Assets Management Committee

The activities of the Bank’s Management Board are managed by the Chairperson of the Bank’s Management Board – Gerhard Boesch. The Chairperson of the Supervisory Board is Sharon Easky.

=== Management Board ===

* Gerhard Boesch – Chairperson of the Management Board.
* Hanna Samarina – Deputy Chairperson of the Management Board (Chief Finance Officer).
* Larysa Chernyshova – Deputy Chairperson of the Management Board (Chief Risk Officer).
* Mariusz Kaczmarek – Deputy Chairperson of the Management Board (Chief Operation Officer).
* Dmytro Musiienko – Member of the Management Board  (Chief Retail Business Officer).
* Yevhen Zaihraiev – Member of the Management Board (Chief Small and Medium Business Officer).
* Anton Razumnyi – Member of the Management Board (Chief Compliance Officer).

=== Supervisory Board ===

* Sharon Easky – Chairperson of the Supervisory Board, member of the Corporate Governance, Remuneration and Nomination Committee (independent member).
* Artem Shevalov – Deputy Chairperson of the Supervisory Board, member of the Technology, Data, and Innovation Committee, and member of the Strategy and Transformation Committee (state representative of the Cabinet of Ministers of Ukraine).
* Eran Klein – a member of the Supervisory Board, Chairman of the Risk Committee of the Supervisory Board, member of the Audit Committee, and member of the Technology, Data, and Innovation Committee (independent member).
* Yuliia Metsher – a member of the Supervisory Board, member of the Corporate Governance, Remuneration and Nomination Committee, member of the Risk Committee, member of the Strategy and Transformation Committee (state representative of the President of Ukraine).
* Sergiy Oleksiyenko – a member of the Supervisory Board, member of the Strategy and Transformation Committee, member of the Technology, Data and Innovation Committee, member of the Corporate Governance, Remuneration and Nomination Committee (state representative of the Verkhovna Rada Committee on Financial Policy and Banking).
* Roman Sulzhyk – member of the Supervisory Board, Chairman of the Technology, Data and Innovation Committee of the Supervisory Board, member of the Risk Committee, member of the Strategy and Transformation Committee (independent member).
* Olga Tomash – member of the Supervisory Board, Chairman of the Corporate Governance, Remuneration and Nomination Committee of the Supervisory Board, member of the Audit Committee, member of the Strategy and Transformation Committee (independent member).
* Nadir Shaikh – a member of the Supervisory Board, Chairman of the Audit Committee of the Supervisory Board, member of the Corporate Governance, Remuneration and Nomination Committee, and member of the Risk Committee (independent member).
* Sebastian Schoenaich-Carolath – a member of the Supervisory Board, Chairman of the Strategy and Transformation Committee of the Supervisory Board, member of the Audit Committee, and member of the Risk Committee (independent member).


==See also==
==See also==
{{Portal|Ukraine|Banks}}
{{Portal|Ukraine|Banks}}
*[[List of banks in Ukraine]]
*[[List of banks in Ukraine]]
*[[Banks in Lviv]]

==Notes==
{{Reflist|group=nb}}


==References==
==References==
Line 321: Line 238:
==External links==
==External links==
{{commons category}}
{{commons category}}
* {{Official website|http://en.privatbank.ua/}} {{in lang|en}}
* {{Official website|https://en.privatbank.ua/}} {{in lang|en}}
* [https://web.archive.org/web/20150320031700/https://privatbank.ua/ua/map/ ATMs, payment terminals, departments of PrivatBank on the map] {{in lang|uk}}
* [https://privatbank.ua/map ATMs, payment terminals, departments of PrivatBank on the map] {{in lang|uk}}


[[Category:Banks of Ukraine]]
[[Category:Banks of Ukraine]]
Line 331: Line 248:
[[Category:Banks established in 1992]]
[[Category:Banks established in 1992]]
[[Category:Nationalised companies in Ukraine]]
[[Category:Nationalised companies in Ukraine]]
[[Category:Government-owned banks]]
[[Category:Government-owned banks of Ukraine]]

Latest revision as of 12:04, 30 November 2024

PrivatBank
Company typePublic joint-stock company
IndustryBanking, investment
Founded1992
Headquarters
Dnipro
,
Ukraine
Key people
Hanna Samarina[1]
ServicesFinancial services
RevenueIncrease₴ 18.910 billion (2013)[2]
Increase₴1.307 billion (2013)[2]
OwnerGovernment of Ukraine[3]
Number of employees
30,000
SubsidiariesAS PrivatBank (Latvia)
AS PrivatBank (Portugal)
AS PrivatBank (Italia)
PrivatBank IBU (Cyprus)
Websiteprivatbank.ua
PrivatBank branch in Lviv, 2015

PrivatBank (Ukrainian: ПриватБанк) is the largest bank in Ukraine by assets. It was formed on 19 March 1992 and has been owned by the Government of Ukraine since 2016. In early 2024, it was confirmed by the National Bank of Ukraine as one of the country's systemically important banks.[4]

PrivatBank has the second-largest network of branches and the largest network of ATMs and terminals among Ukrainian banks. As of July 2022, more than 7,000 ATMs, 11,000 payment terminals and more than 250,000 POS terminals are operating in the network. The national banking service network of PrivatBank includes approximately 1,200 branches. PrivatBank is the largest issuer and acquirer of electronic payment means in Ukraine. The bank operates several payment services including Privat24 and LiqPay.

It is notable for being the first bank to introduce digital banking services to Ukraine. PrivatBank was the first in Ukraine to connect Google Pay and Apple Pay payment services.

According to the British magazine The Banker, in 2016 PrivatBank ranked 16th among the largest banks in Central and Eastern Europe and 627th among the top 1000 global banks.[5]

History

[edit]

PrivatBank is one of the first private commercial banks established in Ukraine. Decision on PrivatBank establishment was taken at the meeting of its founders on 7 February 1992.

On 19 March 1992, the Bank was registered by the Stateas a commercial bank in the form of a limited liability company. At the very beginning, PrivatBank had only one office and a few computers. PrivatBank was the first in Ukraine to introduce plastic cards and ATMs.

In 1996 PrivatBank became a full member of Visa International (payment system) and launched a large-scale plastic cards issuance. In 1997 PrivatBank became the first Ukrainian bank to obtain a Thomson BankWatch rating statement (an international rating agency) and became a full member of the Europay payment system. In 1998 the Bank obtained a credit rating from Fitch IBCA.

On 6 July 2000, PrivatBank shareholders decided to reorganize the Bank from a limited liability company to a closed joint-stock company. The Charter of the Closed Joint-Stock Company Commercial Bank "PrivatBank" was registered on 4 September 2000.

The launch of the Privat24 project was a significant event in the Ukrainian banking system in 2001. Customers were able to manage their accounts online, make regular payments, transfer funds, etc. In February 2002, PrivatBank emitted its millionth plastic card.

In 2003, the Western Union system recognized PrivatBank as the best bank in terms of customer service quality. The Bank also obtained the STP Excellence Award from Deutsche Bank.

In 2009, the Bank changed its organizational and legal form to a public joint-stock company.

In June 2018, the Bank changed its organizational and legal form from a public joint-stock company to a joint-stock company.

Nationalisation

[edit]

On 18 December 2016 the Deposit Guarantee Fund (DGF) appointed a temporary administrator to manage the activities of PJSC CB "PrivatBank" in accordance with the decision of the National Bank of Ukraine to classify the Bank as insolvent.

On 19-21 December 2016, in accordance with the provisions of the Law of Ukraine “On the Deposit Guarantee System”, the DGF dismissed the Bank's Management and Supervisory Board and was solely responsible for managing the Bank's activities during these three days. The DGF recognized the impairment of loans and advances to customers in the amount of UAH 155,764 million and converted UAH 10,934 million of customer funds, UAH 10,721 million of issued Eurobonds and UAH 7,783 million of subordinated debt into authorized capital of the Bank (‘bail in’). On 21 December 2016, after the bail in, the Bank's shares were sold for UAH 1 to the Ministry of Finance of Ukraine. In December 2016, the Ministry of Finance decided to increase the authorized capital of the Bank by UAH 116,800 million and by further UAH 38,565 million in June 2017. Subsequently, the Ukrainian state has owned 100% of the shares of the authorized capital.

Operations

[edit]

The Bank is a universal Bank that focuses on the retail segment, actively promoting services for small and medium businesses and selectively working in the corporate sector.

Almost 19 million Ukrainians regularly use the services of PrivatBank, and there are currently 15 million customers of Privat24 digital banking.

The sectoral characteristics of the Bank's customer base show that a large part comprises trade and commercial enterprises. A significant share of corporate customers are enterprises in the food, transport, agricultural, and construction industries.

Service innovations

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Debit card issued by PrivatBank

In 1999, the Bank launched SMS-banking, and in 2000, it introduced dynamic one-time OTP passwords by linking the card to a mobile phone number.

In 2001, PrivatBank launched the Privat24 digital banking system. As of June 2022, more than 15 million people use the Privat24 digital banking system.

And in 2002, the Bank introduced electronic document management.

Subsequently, PrivatBank was the first in the world to introduce P2P transfers between cards on the Internet and began mass emission of instant cards. In 2005, the Bank emitted a millionth credit plastic card.

Beginning from 2004, PrivatBank has started to make international money transfers to Ukraine using the PrivatMoney payment system.

In 2008, PrivatBank created the first iPhone application in Eastern Europe – iPay, and in 2010, PrivatBank launched mobile payment terminals.

2012 was the year of the introduction of contactless cash withdrawal via ATMs using a smartphone and a QR code.

And in 2015, PrivatBank launched the technology of instant payment via QR code.

In 2016, Visa and PrivatBank announced the launch of the Visa Token Service in Ukraine, which replaces confidential payment card information with a unique digital identifier which is a token.

The next two years were favorable for smartphone owners: in 2017, PrivatBank brought Android Pay (now Google Pay) to Ukraine, and in 2018 – Apple Pay.

2019 was marked in the history of innovations by the updated Privat24. Beyond that, FacePay24 technology – payment by face – became available to bank customers for the first time in Ukraine. The Bank also implemented a number of digital services:

In 2020, PrivatBank launched the "Money at the cash register" service that allows to receive cash at store cash registers. Besides, the Bank has the first biometric POS terminals in Ukraine.

Moreover, government services became available to customers:

  • conclusion of gas supply contracts with Naftogaz by means of Privat24;
  • identity verification and account opening in PrivatBank using digital documents in the Diia application.

In 2021, the Bank opened the first Concept Store in Ukraine – a fully digital office in Kyiv, which is informally called the branch of the future.

Main financial indicators

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PrivatBank earned a profit of ₴35.050 billion according to the official data of the National Bank of Ukraine in 2021.

Below is information on the Bank's equity, assets, and net profit for the past 15 years. More detailed financial indicators of the Bank can be found on the Bank's website in the section About the Bank – Financial reporting.

Year Own capital, UAH billion

(at the year-end)

Total assets, UAH billion

(at the year-end)

Net profit, UAH million

(in a year)

2021 376577 21,212,000 (as of September)
2020 334570 24302.000
2019 281637 32609.000
2018 256100 12,520.000
2017 25.607 259.061 - 22,965.913
2016 12.664 220.017 - 135,928.838
2015 27.487 264.886 216.121
2014 22.696 204.585 749.036
2013 20.311 214.490 1,873.391
2012 18.300 172.428 1,532.760
2011 16.746 145.118 1,425.816
2010 11.879 113.437 1,370.179
2009 10.270 86.066 1,050.489
2008 8.195 80.165 1,291.776
2007 5.388 56.211 1,534.162
2006 3.288 33.777 506.208
2005 2.272 22.058 475.654
2004 1.465 14.713 164.842
2003 0.955 9.842 60.549
2002 0.549 6.811 150.879

See also

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References

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  1. ^ (in Ukrainian) Headless Privatbank: what threatens a bank without a manager and how to appoint hi Archived 28 April 2021 at the Wayback Machine, Ekonomisha Pravda (28 April 2021)
  2. ^ a b "PrivatBank investor review". PrivatBank. 2014. Archived from the original on 21 March 2017. Retrieved 23 January 2018.
  3. ^ "ПАТ "Приватбанк" переходить у стовідсоткову власність держави" (in Ukrainian). Archived from the original on 19 December 2016. Retrieved 18 December 2016.
  4. ^ "NBU Confirms Systemic Importance of 15 Banks". National Bank of Ukraine. 5 March 2024.
  5. ^ "On December 18th, 2016 a new history of PrivatBank began". en.privatbank.ua. Retrieved 11 January 2024.
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