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Public Joint-Stock Company
Industry banking, investment
Founded 1992
Headquarters Dnipro, Ukraine
Key people
Oleksandr Dubilet (Chairman)
Services Financial services
Revenue Increase 20 billion[1]
Increase1.370 billion (for 2010)[2]
Owner Henadiy Boholubov
Ihor Kolomoyskyi
Number of employees
over 30 000
Parent Privat Group
Subsidiaries AS PrivatBank (Latvia)
TaoPrivatBank (Georgia)
AS PrivatBank (Portugal)
AS PrivatBank (Italia)
PrivatBank IBU(Cyprus)
Head office of PrivatBank in Dnipro (2010)
PrivatBank office in Kiev (2008)

PrivatBank (Ukrainian: ПриватБанк[3]) is the largest commercial bank in Ukraine,[4] in terms of the number of clients, assets value, loan portfolio and taxes paid to the national budget. PrivatBank has its headquarters in Dnipro, in central Ukraine. In March 2014 was named by the American review Global Finance (magazine) as "the Best Bank in Ukraine for 2014"[5] while British magazine "The Banker" in November 2013 named again the same bank as "the Bank of the year 2013 in Ukraine".[6] According to Moody's Investors Service it has the best "Bank Financial Strength Rating" (BFSR) among all others rated banks in Ukraine. On 9 October 2013 Fitch Ratings rated PrivatBank 'A-(ukr)' with stable outlook and affirmed on 14 February 2014.[7] On 13 August 2014 Standard & Poor's raised its rating outlook to 'stable' due to the better liquidity ratio than peers in the Ukrainian banking system.

More than 30 thousand people are employed with the bank system. By the results of banking market survey, conducted by GFK Ukraine, PrivatBank services are used by one out of three Ukrainian banks clients (33.2%), and one out of four (24.9%) uses a wide range of services and considers PrivatBank as his/her main bank.

Following the results of the first quarter of 2013 PrivatBank’s net profit has amounted to ₴624.232 million. As compared to the respective period of 2012 the Bank’s profit increased by 2.3 times and was more than 20% of the total profit of the Ukrainian national banking system, amounting to ₴3 billion for the first quarter of the year according to the National Bank of Ukraine.

For the three-month period of 2013 assets of PrivatBank have increased up to ₴175 billion (17 billion euros appx.) and accounts of individuals increased by ₴1.5 billion up to ₴87.322 billion (8.1 billion euros appx). As for 1 April 2013 the bank’s equity was ₴18.959 billion.

As for 1 April 2013 over 2.9 million customers use banking services at the outlets or via PrivatBank's electronic service systems daily.

By 1 February 2011, PrivatBank provides services to 2.4 million retired persons in Ukraine, 3.4 million people get their salary using PrivatBank cards, 1 million students receive their educational allowances through PrivatBank. The bank's infrastructure in Ukraine includes 6′975 ATMs, 2′228 payment terminals, 35′486 POS-terminals, 3′303 branches and offices in cities and districts of the country. On the average, each day 1.5 million people use PrivatBank services.

The bank's primary owners include Ukrainian businessmen and philanthropists, Ihor Kolomoyskyi and Hennadiy Boholubov, with the bank being at the financial and management core of their Privat business group.


PrivatBank is one of the first private commercial banks, established in Ukraine. Decision on PrivatBank establishment was taken at the meeting of its founders on 7 February 1992. On 19 March 1992 the bank already passed its state registration.[8] by Serhiy Tihipko was one of the founders[9] and the first Chairman of the Board.

Privatbank was founded in Latvia in the year 1992. One of the first and oldest banks in Latvia.[10]

At the very beginning PrivatBank had just one office and several computers. It was the first in Ukraine who introduce plastic cards and ATMs. PrivatBank was also the first financial organization in Ukraine to get international rating.

In 1996 it became a full member of Visa International payment system and commenced the large-scale plastic card emission.

In 1997 PrivatBank became the first Ukrainian bank to obtain rating statement from Thomson BankWatch International Rating Agency, and become a full member of Europay payment system.

In 1998 the bank obtained its rating statement from Fitch IBCA International Rating Agency. In November 1998 the bank won a tender and was selected as a servicing bank authorized to perform in Ukraine the payments of the Swiss Holocaust Memorial Fund.

In 1999 PrivatBank opened its International Banking Unit in Cyprus. PrivatBank branch in Nicosia was the first Ukrainian bank branch established abroad.

In 2000 the bank was included in the group of banks authorized to pay compensations to Ukrainian citizens suffered from Nazi pursuit during the Second World War. In 2000 the PrivatBank’s form of ownership changed – on 6 July PrivatBank members decided on the bank’s reorganization from Limited Liability Company to Closed Joint-Stock Company. Thereupon, on 4 September 2000 the first Articles of Association of the Closed Joint-Stock Company Commercial Bank "PrivatBank" were registered.

A significant event in the Ukrainian banking system was the start-up in 2001 of "Privat24" project, provided a number of customers with an opportunity to manage their accounts online in real time, perform regular payments, transfer funds, etc.

In February 2002 PrivatBank emitted its millionth plastic card. In April 2002 PrivatBank representative was selected to Visa CEMEA (Central Europe, Middle East, Eastern Europe, and Africa) Board of Directors.

In 2003, PrivatBank was named the best service quality bank by its Western Union clients. The same year the bank received STP Excellence Award from Deutsche Bank, confirming its professionalism in international payments.

PrivatBank was the first Ukrainian bank to place Eurobonds in the amount of USD 100 mln at the European market. Besides, PrivatBank was the first in Ukraine to obtain Standard&Poor’s "B-" rating. International rating agency Fitch assigned the final long-term "B-" rating to Eurobonds of PrivatBank.

By the decision of shareholders’ at the meeting on 30 April 2009 the bank’s activity was brought into compliance with the Law of Ukraine "On Joint-Stock Companies": relevant alterations were introduced in the bank’s Articles of Association, and the joint-stock company’s type was changed from Closed to Public. Also the bank’s name was changed to Public Joint-Stock Company Commercial Bank "PrivatBank". These changes became effective on 21 July 2009 (license of the National Bank of Ukraine No. 22 dated 29 July 2009).

In 2010 PrivatBank increased its net profit by 30% - to ₴1.370 billion comparing to 2009. The bank’s assets over the above period grew by 32% and on 1 January 2011 made up ₴113.437 billion, customers’ loans and receivables increased by 36% to ₴101.855 billion, liabilities – by 34% to ₴101.557 billion, authorized capital – by 13% to ₴8.860 billion, and owners’ equity – by 16% to ₴11.880 billion.

In March 2014 Russia put the Moscow subsidiary of Ukraine's Privatbank "Moskomprivatbank" under temporary administration, according to the Russian central bank to prevent its bankruptcy; but "Moskomprivatbank" chairman said the move was the result of "political tensions in relations".[11] On 2 April 2014 PrivatBank sold "Moskomprivatbank" to B&N Bank.[12]

Top-Management and Supervisory Board of PrivatBank[edit]

PrivatBank Top-Management[edit]

  • Oleksandr Dubilet – Chairman of the Board of PrivatBank (holds the position since 1997)
  • Yuriy Pikush – General Deputy Chairman of the Board of PrivatBank (since 2004)
  • Nikolay Davydov – First Deputy Chairman of the Board – Chairman of the Board of MoskomPrivatBank
  • Mykyta Volkov – First Deputy Chairman of the Board – Head of "Information Technologies" Manager (since 2004)
  • Tymur Novikov – First Deputy Chairman of the Board (since 2004)
  • Volodymyr Yatsenko - First Deputy Chairman of the Board – Head of General-System Business of Corporate Customers (since 2004)
  • Oleksandr Vitiaz – Deputy Chairman of the Board of PrivatBank – Head of Electronic Business Center (since 2002)
  • Oleg Gorokhovskyi – Deputy Chairman of the Board – Head of "Credit cards" Area (since 2004)
  • Tetiana Gurieva – Deputy Chairman of the Board – Head of Customer Service Business (since 2000)
  • Volodymyr Zavorotnyi – Deputy Chairman of the Board – Director of Kiev Head Regional Directorate (since 1997)
  • Yuriy Kandaurov – Deputy Chairman of the Board – Head of Individual Customer Service Business (since 2002)
  • Stanislav Kryzhanovskyi – Deputy Chairman of the Board – Head of "Security Service" Area (since 2009)
  • Liubov Chmona – Deputy Chairman of the Board – Head of Industrial and VIP-Customers Budgeting Business (since 2002)
  • Liudmyla Shmalchenko – Deputy Chairman of the Board – Head of the Treasury (since 2005)

PrivatBank Supervisory Board[edit]

  • Hennadiy Boholubov — Chairman of Supervisory Board
  • Ihor Kolomoyskyi — Member of Supervisory Board
  • Oleksiy Martynov — Member of Supervisory Board

PrivatBank shareholders[edit]

Shares of PJSC CB "PrivatBank" were equally distributed among 21 individuals (99.794% of the total number of shares) and 5 legal entities (0.206%). Thereat over 98% of shares are owned by the two shareholders: Hennadiy Boholubov (23 773,384 shares or 49.027% of the total number) and Ihor Kolomoyskyi (23 834,849 shares or 49.154%).


PrivatBank Visa Credit card

Innovative technologies in everyday PrivatBank operations help to maintain its leading position at the Ukrainian financial market. PrivatBank employees utilize both commonly used technologies such as Skype,[13] Google Docs and Google Wave and their own exclusive developments, for example, electronic document management system "PrivatDoc". PrivatBank was the first bank in Ukraine to offer its customers a simple internet based banking system. On 20 January 2011 "Privat24" internet-bank included 773,890 users. Other today widely used bank′s technologies are

  • Mobilebanking System that allows a customer to manage his/her bank card accounts and make payments through a mobile phone by SMS with a code to the bank server
  • LiqPAY — payment platform, designed by PrivatBank specialists, combining Visa money transfer technology, and advantages of Internet and mobile channels
  • 3-D Secure Technology launched by the bank in 2010 provides protection against fraud
  • Electronic "Coin-Free" change technology allows transferring change to a customer not through coins, but in the form of electronic money to their mobile phone account or in the form of an electronic voucher.

Social projects[edit]

In 2011 PrivatBank, plans to launch a new social project "PrivatBank against drugs".

In January 2011, PrivatBank within 24 hours arranged fee-free fundraising campaign to aid Domodedovo explosion victims (Moscow, Russian Federation). Only in Ukraine over ₴105 thousand was raised.[14] In October 2010 it aided to families of those who died in the road accident in Marganets (Dnepropetrovsk Region, Ukraine); ₴101 thousand raised),

In 2010, PrivatBank established a separate charity project "To help is easy!" designed to collect donations for orphanages. The bank provides its ATM infrastructure for fee-free fundraising for charity funds.

In March 2010, it supported sufferers from the explosion in Moscow Subway (₴11 thousand)

In June–July 2008, the company helped sufferers from the flood in Eastern Ukraine (₴530 thousand).

In 2008, JuniorBank was formed, where children and teenagers learn finance. In 2010, within the project "Create with pleasure!", exhibition galleries with creative works of retirees were arranged in the bank departments. With the help of "Skype: Victory Day" project veterans from many cities and countries were able to find their friends and talk to them. The project was nominated to the European Excellence Awards 2010.


According to the bank itself, it has since received several international banking awards.[15]

1999-2002 — Euromoney magazine recognized PrivatBank was the best bank in Ukraine at home market (Awards for Excellence rating).

1999 — Global Finance magazine named PrivatBank the best Ukrainian bank at emerging markets.

1999, 2003-2004 — The Best Bank of Ukraine at the World’s Bank Best Awards.

2000, 2002 — The Banker named PrivatBank The best bank of Ukraine (Bank of the year rating).

2001-2009 – eight years in a row Global magazine acknowledged PrivatBank the best bank in the World’s Best Foreign Exchange rating.

2003 – PrivatBank is the best Ukrainian World’s Best Bank 2003 (Global Finance rating).

2004 – PrivatBank is named The Best Bank of 2004 (global rating of FOREX market operators by Global Finance magazine).

2005 – Best Emerging Market Banks rating named PrivatBank The Best Bank of Ukraine.

2007 – MoneyGram Payment Systems, Inc. (USA) awarded PrivatBank the Certificate Excellence for the fastest network development.

2009 — Best Local Bank in Ukraine, EMEA Finance magazine named PrivatBank the best bank of Ukraine in the Best Local Bank 2009 rating.

2010 — by results of the year The Banker magazine acknowledged Electronic Change technology of PrivatBank the best in the nomination Best Innovation in Cash and Treasury Technology in Innovation in Banking Technology Awards rating.[16]

2010 — PrivatBank confirmed its status of the absolute leader at Ukrainian banking system in the level of customer trust within the global project The World’s Most Reputable Companies.

International presence[edit]

International PrivatBank network comprises such bank partners as MoscomPrivatBank (Russian Federation), AS PrivatBank (Latvia), AS PrivatBank[17] (Portugal) and TaoPrivatBank (Georgia).[18] Besides, PrivatBank has its branches and representative offices in 12 countries of the world, including Italy, Cyprus, Great Britain, Spain and China.

On 16 August 2007, the name of PrivatBank's Latvian subsidiary, AS Banka Paritāte, was officially changed to AS PrivatBank as part of a strategy to strengthen the banking group's regional brand recognition.[19]

References and notes[edit]

See also[edit]

External links[edit]