/24-7PressRelease/ - October 02, 2007 - Ukrgasbank shares demonstrated a good example of it. During the summer period the price of the bank's shares was growing up. For less than two months the virtual portfolio of Delo newspaper earned about USD 1,500 on Ukrgasbank shares. Within the period from August 23 to August 30 some reduction in value of this bank's shares was registered. Now the shares of the bank can be purchased by 9.33% cheaper. It was not the current fall in quotations that caused the fluctuation, but the additional emission of Ukrgasbank shares.
Commenting on the last changes, Yuriy Kamenetsky, director of Investment Activities Department of Ukrgasbank, noted: "In short-term prospects share price adjustment in connection with additional emission is duly justified. Practice shows us that due to emission the price of shares always drops down. Securities of Ukrsotsbank were just a case in point. In the end of May of the current year the price for that bank's shares recorded more than two-fold drop within one day only. Such processes are rather logical and have compensatory mechanisms, like shareholders' right to purchase the shares of a new emission at their nominal value in proportion to their participation interests in the share capital. But, frankly speaking, not all enjoy this right. As far as it concerns Ukrgasbank, I would like to pay attention to the fundamental factors, such as changes in the bank's assets and business development."
According to the analysts from Millenium Capital investment company, financial performance rates of Ukrgasbank to some extent surpassed the expectations: net profit reached UAH 42.1 million for six month of 2007, which is two-fold more than for six months of 2006, while for the banking system in general the profit rose by 1.7 times; assets of Ukrgasbank increased by 37.8% to reach the mark of UAH 6.145 billion for six months of 2007 as compared with a 29.5% growth of the banking system; credit portfolio of Ukrgasbank increased by 52.3% to reach UAH 3.297 billion for six month of 2007 (with growth of the banking system making up 31.2%). In credit sector, volumes of loans extended to individuals grew by 44.7% to UAH 855.5 million (with growth of the banking system making up 36.7%), and those extended to legal entities - by 55.2% to UAH 2.441 billion (with growth of the banking system making up 25.5%).
In view of the bank's sweeping development, Gleb Kabalnov, a leading analyst of Arta Investment Partners company, also recommends buying Ukrgasbank shares until their value has reached UAH 8 (USD 1.58). "The bank has good financial performance rates for the first half of 2007. Ukrgasbank is one of a few Ukrainian banks that have sufficient quantity of shares in free circulation"
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