Largest branch network, loan portfolio growth, development of premium services and digital channels: key results of 2023 in Oschad's retail business

The challenging year of 2023 proved to be an important stage in the development of Oschadbank's services for private clients. Today, Ukrainians can receive banking services in about 1,200 Oschad branches. This is the largest network among all Ukrainian banks. Over the past year, we managed to reopen 17 branches. Last year, the bank also launched a project of branches "on wheels" to provide services to customers in frontline regions where no other bank operates.

One of the main results of the year: Oschad continued to provide credit support to Ukrainians. The corresponding loan portfolio grew by 30%[1] and reached UAH 15 billion. Last year, the growth rate of the bank's retail portfolio exceeded the market average. Oschad is currently ranked third in the Ukrainian banking system, having added one point compared to 2022.

Oschadbank consistently holds the lead in mortgage and car lending, where it has a market share of 44% and 54%, respectively. During the year, the bank granted 2,804 mortgage loans to its customers in the amount of over UAH 4 billion. Oschad is the leader of the state program eOselya (eHouse) with a market share of almost 48%. Since its launch, as of the end of last year, 2,747 soft loans totaling UAH 4.1 billion have been financed.

Last year, more than 4,000 borrowers became car owners thanks to Oschadbank, and the total amount of car loans granted amounted to UAH 3.3 billion.

In addition to the bank's two flagship loan products for individuals, there are also positive results in the area of cash lending. The volume of Oschad's cash loans increased by 2.5 times over the year, and the relevant portfolio now exceeds UAH 1 billion.

"In the second year of the war, the bank is actively lending because our clients need it. In particular, the demand for participation in the state program eOselya is growing. Housing is an important prerequisite for the return home of Ukrainians who were forced to go abroad because of the war, and, accordingly, for the restoration of Ukraine, to which Oschadbank is comprehensively involved. Oschadbank has already issued the first eOselya loan, the first such loan for an apartment in an unfinished construction project, and launched the first joint program with regional authorities, which compensate part of the interest rate from their budget. In addition, last year Oschad started working in the primary market and has already accredited 12 developers. Recently, thanks to the liberalization of the program's terms, we also issued the first loan for a private house in Ukraine," said Valeria Malakhova, Head of Retail Banking at Oschadbank.

In 2023, Oschad saw a 10% increase in retail account balances to UAH 188 billion (equivalent in all currencies). More than ¾ of all funds are placed in hryvnia. In 2023, the volume of Oschadbank's term hryvnia deposits increased by 32.3% to over UAH 58 billion. Among the bank's deposit products, the most popular are My Defender and My Victory deposits. A preferential deposit "My Defender" was introduced for military personnel and their families. As of the end of December, UAH 14.1 billion was placed on this deposit. As for the popular My Victory deposit with a higher interest rate, it is open to anyone. Since the introduction of this deposit in May 2023, Ukrainians have placed more than UAH 6.1 billion on it.

For all customers, including the premium segment, it is now important to preserve savings. For this purpose, Oschad offers, among other things, military bonds. They are in great demand among premium customers, which has doubled year-on-year. Currently, Oschadbank offers the opportunity to purchase government bonds both at primary auctions of the Ministry of Finance of Ukraine and on the secondary market - from its own portfolio.

Additionally, the bank offers weekly digests with analysis of financial markets and the economy. Based on this information, clients can make sound financial decisions that will help them preserve and increase their wealth.

The total number of premium customers increased by 23% in 2023. The corresponding service is provided by managers in 70 premium zones operating in each regional office and in the flagship premium center in Kyiv.

"The needs of premium clients go beyond the usual service and standard banking products, so we are confidently moving towards the best international standards. This is confirmed, in particular, by the high rating of the Global Private Banking Awards 2023 by Euromoney: Oschad was recognized as the best bank in private premium customer service in Ukraine," said Dmytro Solovyov, Head of Premium Customer Service at Oschadbank.

Given today's realities, customers are actively using remote service channels. Thus, in 2023, 157 million transactions totaling almost UAH 362 billion were conducted in the Oschad 24/7 system (two mobile applications and Internet banking). Of these, 2.5 million transactions totaling more than UAH 2 billion were made using OschadPAY (cash register in a smartphone). More than 9,000 users of this mobile application can make cashless payments using contactless cards and wallets Apple Pay and Google Pay via their smartphones.

"We have invested in the development of new features of the Mobile Oschad app: we have made more than 10 updates over the year, introduced 25 new functions and services. In particular, this includes the ability to issue an eRestoration card, which can be used to receive compensation for property damaged as a result of the full-scale intrusion, or to manage an installment loan. Now customers have the opportunity to change the credit limit independently when applying for a new installment plan. We also added new services to chatbots in Viber and Telegram," said Volodymyr Moskalenko, Head of E-Commerce and Payment Instruments at Oschadbank.

Another area of work is the development of acquiring. Oschad currently ranks second in the acquiring market with a market share of 20%. The bank's network includes more than 80,000 POS terminals, and the number of partners exceeds 29,000.

"I am proud of the business results we achieved in 2023 thanks to our team and because our financial products and service solutions were quickly adapted to the wartime conditions. As a result, the level of satisfaction of individual customers increased by 30% compared to the previous year. In 2024, we will work on further growth of the retail loan and deposit portfolios and will be a reliable financial partner of the state to restore the country and improve the welfare of our citizens," summarized Anton Tyutyun, Deputy Chairman of the Management Board of Oschadbank in charge of retail business.

[1] Hereinafter - data as of the end of 2023.