Iute Group, the Estonia-based digital-first banking group, has revealed plans to acquire a banking licence held by a bridge bank in Ukraine.
It also involves the “selective transfer of low-risk assets” and associated retail deposit liabilities totalling approximately €4m ($4.6m) from RWS Bank.
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This move follows approval from the National Bank of Ukraine for Iute Group to establish a regulated bank entity in the country.
The transaction is part of an agreement with Ukraine’s state-owned Deposit Guarantee Fund and will underpin Iute Group’s entry into the Ukrainian market.
The acquisition will be funded using existing liquidity within Iute Group.
As per the company’s estimates, net loss from its Ukrainian operations in 2026 will not surpass €3m.
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By GlobalDataThe assets being transferred primarily comprise government bonds and cash, with no loan portfolio or related credit risk included in the transaction.
Around 13,000 retail customers, together with their accounts and deposits, are expected to transfer as part of the deal.
No branch network is part of the takeover.
Following completion of the deal, Iute Group’s Ukrainian banking entity will become the “legal successor to selected assets and deposit liabilities” transferred from RWS Bank.
Arthur Muravitsky has been appointed to head the new operation.
Muravitsky brings over 22 years of experience in Ukraine’s financial sector and has previously held senior positions at several local banks.
Initial priorities for the Ukrainian entity include securing adequate capital, assembling a management team, and preparing for the launch of digital services.
The bank will operate under the IuteBank brand.
Iute Group CEO Tarmo Sild said: “This step is being taken to support our long-term objective of expanding digital banking services in a disciplined and responsible manner. Establishing a fully digital bank in Ukraine through the selective transfer of a banking license and low-risk assets would allow us to expand our ecosystem in a disciplined and risk-controlled manner. The intended structure of the transaction is designed to participate in long-term growth potential while maintaining clearly defined capital and loss limits.”
