iute Group is entering Ukraine to build a fully digital bank

· Around 13,000 customers are expected to transfer from RWS Bank, a Ukrainian bank with over 30 years of history and former Swedbank ownership.

· IuteBank will be built from scratch as a fully licensed digital bank under the supervision of the National Bank of Ukraine.

· Iute will cap total investment in Ukraine at €15 million, becoming the first foreign investment in banking since the last war.

iute Group, a banking group founded in Estonia, will establish a business entity in Ukraine and is preparing to enter the market by building a digital bank, subject to regulatory approval.

iute has won Ukraine’s state-organized tender conducted by Deposit Guarantee Fund to take over selected assets and deposit liabilities of RWS Bank. Completing the transaction, including the transfer of around 13,000 retail customers together with their accounts and deposits, is subject to final approval by the National Bank of Ukraine and expected to take place in January. RWS Bank is a Ukrainian bank under resolution with a history of more than three decades, including earlier operations under international banking ownership, most notably Swedbank.

Tarmo Sild, CEO of iute Group, said the step is part of iute’s strategy to build a digital bank for everyday financial life, whereas geographic expansion is part of the evolution. The decision to enter Ukraine is based on confidence in the country’s future and its integration into the European economic space. “We look at Ukraine as a huge growth opportunity for Iute and for Europe, as the war has changed the country into the most digital financial market with the sixth largest population in Europe, and with changes in national mindset. War changes a lot. I see Ukraine as a forefront of growth within 5 years from now, thanks to the bravery of that nation,” he stated. “Completing the transaction will add Ukraine to our markets and the first fully digital bank into our group that bears our name and does not have legacies. iuteBank is built from scratch – we acquire an interim vehicle that has the banking license, hand-picked assets and corresponding deposit liabilities of the RWS Bank,” Sild explained. According to the CEO, this approach will result in a bank’s small initial balance sheet under 10 million euros.

The bank will be named iuteBank and supervised by the National Bank of Ukraine. It will operate under a full banking licence, enabling it to provide core banking services, including

accounts for retail and corporate customers, cards, deposits, loans, payments, foreign exchange operations as well as cash and settlement services.

iuteBank will be led by Arthur Muravitsky, an experienced Ukrainian banking executive with more than 22 years of experience in the financial sector. According to Muravitsky, the focus is on building a fully digital bank from day one. The next steps include capitalising the bank, onboarding the core team and complying with the National Bank of Ukraine to commence daily operations. “From the beginning, this process has been supported by the Deposit Guarantee Fund and the National Bank of Ukraine, whose cooperation has been essential in moving the project forward,” commented Muravitsky.

“During the first year, the focus is on launching the digital app and key financial products, while beginning customer acquisition. The following phase will concentrate on scaling the business – growing volumes and expanding the product and service offering,” added Muravitsky.

iute emphasises that its expansion into Ukraine follows the same disciplined risk approach applied across its markets. “Risks in Ukraine are addressed the same way as in any other country. Specifically, we have set an internal threshold that our total investment into Ukraine will not exceed 15 million euros until certain revenue and profitability thresholds have been exceeded and the war is over. In 2026 we expect net loss of the bank to not exceed 3 million euros,” said Sild.

iute Group and its subsidiaries have supported Ukraine since the start of the war, including monetary donations, and considers the entry into Ukraine a long-term European investment.

iute Group is a digital banking group focused on everyday financial services in Southeast Europe. Established in 2008 and headquartered in Estonia, Iute serves customers in Albania, Bulgaria, Moldova, North Macedonia and Ukraine. Through the Myiute app and its local operations, Iute provides digital financial services including payments, banking, financing and insurance intermediation. Iute Group finances its operations through equity, deposits and secured bonds listed on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.