OREANDA-NEWS. October 08, 2010. The financial health of Forum Bank, a major Ukrainian bank, is perceived as stable by NBU, the regulator announced Oct 7. The bank meets all economic requirements set by the national regulator and shows adequate performance.  

Millennium Capital deems the news as NEUTRAL for FORM. The current situation with Forum reminds us of the Prominvestbank case in 2008 when NBU allied with the bank management to prevent the public concern from building up and endangering the entire banking system (although that didn’t help). Thus we treat the statement of NBU with respect to Forum as a preventive measure with regards to the overall system stability. From the standpoint of financial health the bank remains under significant pressure, although we see some indicators of the turnaround in its financial performance. We reiterate our view on the stock as a high risk asset.