The bank expects to close sale of Erste Bank (605 CZK, -1,99%) Ukraine in 1Q13. Erste will recognize EUR 71mln fair-value charge in 4Q results (or 94 mln. EUR pre tax). This is the difference between the price the bank gets (63 mln eur) and the equity of the company (157mn eur). The price thus implies P/B at 0.40 which is adequate given it has been a loss making unit for Erste. We think the disposal of Ukrainian assets should not have any meaningful impact on Erste’s capital ratio and thus we consider the news to be rather neutral to slightly negative.