Credit Agricole set a trade finance development record

By results of seven months 2020, the trade finance portfolio of Credit Agricole passed UAH 5 billion milestone for the first time in its history on the Ukrainian market. This achievement was facilitated by several factors: growing demand for the service among the majority of customers and the increased FX rate. However, in EUR equivalent the trade finance portfolio has also broken a record: EUR 155 million, which is +3% against the 2019 result.

Multinational and large local companies used trade finance products almost at the same level. Guarantees traditionally represent the biggest share of the bank’s total portfolio (about 60%). The demand for letters of credit has grown and their average share represents 30%. Substantial share – 10% of the portfolio – belongs to bill avalization for SME customers and its absolute increase year-on-year is 20%.

By results of six months, Credit Agricole retains its position among top three in the Ukrainian trade finance banking market and is a market leader by the volume of letters of credit.

“This year, complicated business environment caused the increased demand for banking guarantees – the tool that secures payment and other obligations under the contracts, Oksana Maksymenko, the Head of Trade Finance of Credit Agricole Bank, notes. From its end, Credit Agricole ensured high quality and continuous customer service even in the situation of lockdown and remote work of our team. We provide timely advice to businesses, support the entire flow of transactions while adjusting our internal work processes and adapting them to new circumstances. Our customers know that they can always rely on Credit Agricole!”

“In general, the development potential of trade finance in the Ukrainian market is huge: if we adopt best practices of the neighbor countries, we can expect 2-3 times increase of the demand. Thus, the important tasks for Ukrainian banks and the NBU include the improvement of financial awareness of customers and maximum adapting of products to the digital era needs. Favorable situation in the external markets may become one of the trade finance development drivers”, Vladislav Berezhnyi, Head of Trade and Structured Finance Department, comments. 

Credit Agricole Bank renders trade finance services to its customers from various sectors: agribusiness, pharmaceutics, automotive business, retail trade, etc. Refer for details here.

About Credit Agricole: 

JSC “Credit Agricole Bank” is a modern universal bank owned by the leading financial group in Europe – Credit Agricole Group (France). The Group is a major partner of the French economy and one of the largest banking groups in Europe. It is a leading retail bank in Europe, having the largest portfolio of assets under management, being first in the field of ban insurance and third - in project financing in Europe. Credit Agricole has been operating in the financial market of Ukraine since 1993 and renders the entire range of banking services to private individuals, including premium-clients, and business. The bank pays special attention to cooperation with agricultural enterprises. Reliability and business reputation of Credit Agricole in Ukraine is confirmed by the highest possible FITCH ratings, leading positions in bank sustainability, bank deposit reliability and bank profitability rankings, as well as by 280 000 active private and 17 000 corporate customers, including international corporations, large Ukrainian companies and representatives of small and medium business. Credit Agricole Bank is a socially responsible bank that confirms its status by the large number of projects implemented under the Corporate Social Responsibility Program “We Care!”. 

Contacts:

Viktoriia Torianyk, Head of PR and internal communications division of Credit Agricole Bank.

E-mail: Viktoriia.TORIANYK@credit-agricole.ua