The new FUIB development strategy for 5 years — from 2005 to 2010 provides for increase of the business volume and extension of the branch network. Within the first year of the strategy implementation, the Bank intensified substantially its activity both in the corporate and private segments. The first priority task for FUIB is to ensure favourable conditions for quick and efficient cooperation with its clients on basis of the information openness and transparency policy. The new Bank development strategy, apart from further extension of the corporate business, provides for enlargement of the retail segment as well, as this business line is regarded as the most promising in the sphere of banking services in Ukraine. That is why the new positioning of FUIB as the “Comfortable Bank” was proposed to satisfy the needs of this target group. In the retail business, FUIB focuses mainly on the services rendered to VIP clients (rich and well-off) and middle-class customers. This is the basic concept of the FUIB corporate development strategy. As a result of the strategy implementation, FUIB plans to achieve significant successes and strengthen its position in the market by 2010 due to the following: - 7 times increase of the Bank value;
- 7 times increase of profitability (annual profit);
- 2.5 times enlargement of the market share;
- 8.5 times growth of assets.
To achieve its strategic aims, the Bank intends to make substantial transformations, basically by means of the following: - extension of its geographic presence (by 2010, the number of its sales points will reach 140);
- introduction of the new products and services;
- launch of the alternative service channels;
- cooperation with the strategic non-banking partners;
- attraction of the new perspective personnel;
- implementation of the new organisational structure.
The Bank re-branding reflects the changes FUIB undergoes as well. The new Bank logo is recognizable, multi—meaning and symbolic. The logo’s red colour is the colour of activity and dynamics symbolizing continuous business development. The logo is round-shaped, this form symbolizing integrity and harmony, which reflects the fact the Bank takes care of its customers and employees. The easy-to-use laconic name of FUIB contained in the logo underlines the comfortable nature of the Bank. In 2005, the private banking strategy aimed at VIP and middle-class private clients proved efficient, and in 2006 FUIB developed this success further. Alongside with the increase in the volume of issued car purchase loans, the Bank has introduced the consumer loans and housing loans that will allow to increase the portfolio of loans to private clients by 5 times. With a view to attracting new clients and retaining the current ones, we will implement partner programmes with the companies the FUIB target clients are serviced by; we will develop and implement the VIP-club concept as well. It is worth mentioning that following the introduction of some particular services, the full range of banking services will be available to the FUIB private clients: debit and credit cards, overdrafts, mortgage loans, car purchase loans and consumer loans, precious metals purchase etc. The balances on the individual accounts will increase from USD 132 million to USD 219 million. In 2006, FUIB opened 14 new sales points, the total number of the sales points in the Bank branch network thus amounting to 49 at the end of 2006. 12 out of 14 new sales points were opened in the regions FUIB had already been present in, 2 sales points were opened in the regions new for the Bank. Accordingly, the number of the Bank employees grew amounting to about 2300 staff-members, which is almost 1.5 times more than at the end of 2005. In 2006, the customer service quality improved due to the growth of the number of the VIP clients service areas, launch of the Call—Centre and more queue management systems installed; the first one has been functioning successfully at the Bank Donetsk Branch since 2005. Due to the service quality improvement and the branch network extension, we estimate that the number of our active corporate clients will grow from 1 thousand to 1.5 thousand; the number of private clients, from 0.5 million to 0.55 million. Within 2006, the Bank assets showed a 70% increase amounting to UAH 6,082.879 million, as of January 1, 2007. The net profit made up UAH 81.8 million. The loan portfolio increase made up 85% as of January 01, 2007 reaching UAH 3,509.407 million, including corporate loans equalling UAH 3,058.562 million, individual loans equalling UAH 450.845 million. The Bank equity capital increased by 102%, as ofJanuary 01, 2007 making up UAH 980.458 million. With a view to increasing the Bank brand awareness, FUIB has launched an active image and PR campaign that will ensure its permanent presence in the media space. Within the framework of the social events sponsorship, the Bank will continue its long-term traditional cooperation with “Stars of the World Ballet” international festival. | 
