History

1991-2005

The Bank was founded on 20 November 1991, registered with the National Bank of Ukraine on 23 December 1991 and commenced operations in April 1992.

The Bank was the first Ukrainian bank with a share of its capital held by a foreign shareholder. In 1995 the Bank began its cooperation with the European Bank for Reconstruction and Development (EBRD) and in 1996 with Deutsche Investitions-und Entwicklungsgesellschaft MbH (DEG) to increase its corporate lending business by extending loans to large corporate clients. The Bank became one of the first Ukrainian banks to obtain funding from international financial institutions without government guarantees.

In 1999 DEG, EBRD and International Finance Corporation (IFC), became shareholders, each with a hold of 10%. In 2000 Fortis Bank became a shareholder as legal successor of Bank Mees & Hope N.V. These international financial institutions implemented western banking practices, including systems of reporting, risk management and transparent management structure. Foreign shareholders, in particular Fortis Bank, have contributed significantly to developing the Bank’s systems of credit risk management, improving operating procedures and IT systems. The Bank was also the first Ukrainian bank to institute IFRS financial reporting (in 1991) and one of the first to obtain a credit rating from an international credit rating agency (Fitch in 1998).

The Bank joined the MasterCard Worldwide payment system in 1993 as a “principal member” and began offering MasterCard payment cards to its customers. The Bank has been a “principal member” of the Visa International payment system since 1996. In 1998 the Bank established its card processing centre allowing it to service its own credit and debit cards transactions and provide such services to other Ukrainian banks.

In 1995 the Bank installed Midas software (a product of Misys IBS Ltd., UK) as its core banking software. In 2004, the Bank established a back-up centre in Donetsk, separate from its main computer communication network centre, providing redundancy for each of the Bank’s systems.

The Bank has been a member of the Society for Worldwide Interbank Financial Telecommunication (“SWIFT”) since 1993. In addition, in 2001 the Bank joined the Ukrainian First Stock Trading System (PFTS). The Bank has been a member of, amongst others, the Association of Ukrainian Banks since June 1993, the Ukrainian Interbank Payment Systems Member Association (known as “EMA”) since March 1999, the Ukrainian Credit-Banking Union Association since February 2002, the Interregional Stock Exchange Union since October 1996 and the Ukrainian Interbank Currency Exchange since December 1992.

2005-2011

In February 2005, SCM Finance, a finance subsidiary of the System Capital Management Group (SCM) acquired 50 percent of the share capital of the Bank. In August 2006, SCM Finance acquired a further 49 percent of the Bank’s share capital.

A new 2006-2010 strategy was adopted to make the Bank a more universal banking institution, to strengthen corporate business, and to promote retail business as well as developing a branch network. The Bank also put its call centre into operation to ensure clients access to the Bank’s services 24 hours a day, seven days a week. Other client relationship management (CRM) technologies as alternative sales channels for retail banking products such as telephone banking, internet banking and additional CRM technologies were also implemented.

The Bank has undertaken a branding exercise whereby it markets itself to its customers as a “comfortable bank”. The Bank believes that its current and prospective customers perceive the Bank as a secure and reliable banking services provider which seeks to build partnerships with its customers.

The principal shareholder has committed capital injections in the amount of approximately USD500 million.

In 2007, FUIB obtained credit rating from the second rating agency Moody’s Investors Service. Also, this period was characterized by the active presence of the Bank in the international capital and loan markets. This included a USD275 million debut Eurobond issue, the largest Eurobond issue by a Ukrainian-owned private bank to that time. Also, there were a number of syndicated and bilateral loans totaling about USD 1 billion. Further, new markets were tested in the Middle East and Asia while attracting syndicated loans.

In late 2009 the Bank completed debt refinancing with both lenders and bondholders in the amount of more than USD500 million, which allowed the Bank to extend facilities to the end of 2014. As a part of the Bank's refinancing process, all of its existing syndicated and bilateral facilities were combined into a single five-year facility totalling USD237 million. The Bank also reached an agreement with its bondholders to amend the terms and conditions of the USD275 million Eurobond, which was issued in 2007. The bond was rolled over from the original maturity date in February 2010 until the end of December 2014.

On July 16, 2011 the consolidation of FUIB and Dongorbank was completed. The Banks consolidated their balance sheets and branch networks with FUIB as the surviving entity. The combined Bank became the 10th largest financial institution in Ukraine by assets and capital. After consolidation FUIB extended its network from 135 to 171 branches and its ATM network from 649 to 851 devices. The consolidation of FUIB and Dongorbank was one of the biggest consolidations in Ukrainian history and creates the strongest platform for further growth and achievement of strategic goals.