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IBI-Rating has affirmed the rating of bank deposit reliability of "BANK FORWARD" PJSC at 5+ grade

29.12.2015
IBI-Rating informs on the affirmation of the rating of bank deposit reliability of "BANK FORWARD" PJSC at 5+ grade (excellent reliability).

Rating of bank deposit reliability at grade 5+ indicates that the financial institution is reliable, pays its obligations timely within the requirements established by the current legislation of Ukraine, including those of the National Bank of Ukraine, and has a good reputation. The likelihood of problems with a timely return of deposits is low, as the financial institution is not sensitive to the impact of external and internal factors. The impact assessment of external factors does not apply to the situations involving force majeure circumstances.

The affirmation of the rating grade of "BANK FORWARD" PJSC is due to its sufficient level of capitalization, but the capital provides only partial coverage of the credit and investment risks, which the Bank assumes. At the same time, it is almost entirely secured by the available real estate owned by the Bank. The amount of highly liquid assets is at a sufficient level, but is mainly formed by balances at the current accounts with other banks. The actual economic values of liquidity ratios exceed the minimum allowed values set by the NBU. However, the quality of the granted loans continued to deteriorate gradually, causing an increase in both the volume and proportion of the negatively classified assets due to the Bank's operations in a more risky segment and given the decline in real incomes of the population. The owner’s funds and the clients funds remain the main component of the resource base. Amounts due to customers are mainly formed by time deposits of individuals, the volume of which decreases gradually. However, the Bank’s resource base and customer deposit portfolio remain well diversified by major lenders and depositors, respectively.

By the results of 11 months, the Bank sustained a loss, thus, performance indicators declined. However, despite the above, the financial institution meets its obligations to creditors in a timely manner and in full.

A positive impact on the rating of bank deposit reliability may have the following: an increase of the authorized capital, improved quality of the customer loan portfolio. A negative impact on the rating of bank deposit reliability may have the following: deterioration of the Bank’s solvency (liquidity); growth of credit risks due to further deterioration of the asset quality, the Bank's increased vulnerability to market risks, reduced efficiency and loss-making activities, as well as deterioration of the political and economic situation in the country.

In order to perform the analytical research the materials provided by "BANK FORWARD" PJSC were used, including the annual financial statements for 2011-2014 and 9 months of 2015, target performance indicators for 2016, other necessary internal information as well as the information from the public sources, which the Rating agency considers reliable.

Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua