By Yevhen Hrebeniuk, Senior Equity Analyst at Troika Dialog Ukraine
Peter Tils, head of Deutsche Bank’s Central and Eastern European operations said on Friday that the bank’s Ukrainian subsidiary has received a banking license from the National Bank and will begin operating on September 30.
Tils said that despite Ukraine’s complicated economic situation, Deutsche Bank is optimistic about the market. Deutsche Bank has had a representative office in Ukraine since 2005.
Troika’s view: In our view, the news has no direct implications for the banks that we cover. The new subsidiary is unlikely to become a competitive force anytime soon and will most likely serve a narrow niche connected with Ukrainian-German trade relations.
However, we believe the move should be regarded as a very positive development as it indicates the first signs of a revival of interest among strategic investors in Ukraine’s banking system, despite the ongoing troubles related to asset deterioration and recapitalization needs. We believe that Deutsche Bank’s emergence on the market could even mark the beginning of a new wave of M&A activity.
