FUIB and Dongorbank Announce Oncoming Consolidation
OREANDA-NEWS. September 30, 2010. The Supervisory Boards of FUIB (First Ukrainian International Bank) and Dongorbank recommended the shareholders of the banks to consolidate the both banks into one through accession of Dongorbank to FUIB. The decision will be valid after its approval of the banks' shareholders at their meetings.
The principal objective of joint operations is to raise efficiency and competitiveness of the Group's banking business through an increase in the scope of activity and improved regional positions of the banks.
Commenting on the consolidation Ilya Arkhipov, SCM's Director of Business Development, Chairman of Supervisory Boards of FUIB and Dongorbank, said: "The financial business for SCM is strategic and has, in our view, a big potential for profitable growth. Therefore, the main goal of the consolidation of FUIB and Dongorbank is to create a bigger and more efficient platform for further growth. I am confident that the consolidation will help to enhance the bank's reliability and improve significantly the quality of management and operational efficiency. At the same time we will continue to improve the quality of service and offer innovative products to our customers.
Mr Arkhipov said that a careful preparation preceded the merger: "Consolidation of FUIB and Dongorbank is a planned step under the strategy of development of SCM's banking business, towards which we have been going for quite long. Today is the best time for integration: the banks are fully ready and the situation in the market of financial services of
"I am confident that the consolidated bank has all the possibilities to realize the new plans effectively - a clear strategy, a professional team, a strong brand and the support of shareholders," added Ilya Arkhipov.
The integration will optimize the management structure, unify a number of services and tariffs and ensure joint development of new products and client programmes.
"The integration of two financial assets of SCM Group - FUIB and Dongorbank – is the first step towards implementation of the new Development Strategy 2010 – 2014, the major goal of which is to be a leading player in
"The consolidation is beneficial for both banks as it will unify processes and products, enhance the range of services and significantly improve working efficiency. But especially good it is for the clients as the merger includes strong national and regional players. This means that a bank with the national geographic coverage and solid regional positions will appear in the Ukrainian market," said Natalya Kosenko, Dongorbank Board Chairman.
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