IBI-Rating has affirmed the rating of bank deposit reliability of "APEX BANK" PJSC at grade 4

IBI-Rating informs on the affirmation of the rating of bank deposit reliability of "APEX BANK" PJSC at grade 4 (excellent reliability).

The rating of bank deposit reliability at grade 4 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. The problems with a timely return of deposits are unlikely to arise, although there is a certain dependence of the financial institution on the impact of external and internal factors. The impact assessment of external factors does not apply to the situations involving force majeure circumstances.

The affirmed rating grade is due the Bank’s preserving of an adequate level of capitalization as evidenced by the sufficient actual value of regulatory ratios of capital adequacy. "APEX - BANK" PJSC meets its obligations to creditors in a timely manner and in full. The volume of highly liquid assets forms almost a third of all assets, but they consist mainly of fund balances in other banks. Actual values of financial liquidity ratios exceed the minimum allowable ratios set the NBU. However, the existing dependance on the largest corporate customers both in the resource base, and in the structure of assets, may put pressure on the Bank's liquidity and increase its vulnerability to individual financial risks.

The main component of the resource base are amounts due to customers, which are formed mainly by funds of individuals. It should be noted that the Bank's resource base is inherent in dependence on the major creditors, which limits the financial flexibility of "APEX - BANK" PJSC. At the same time, it is worth noting that the Bank adheres to regulatory requirements and its obligations in a timely manner. IBI-Rating notes that during the analyzed six months the Bank’s dependence on the financial condition of a small number of borrowers has grown, which increases the vulnerability of "APEX - BANK" PJSC to credit risk. At the same time, it should be noted that during the second half of 2015, the Bank's vulnerabity to foreign exchange risk decreased due to repayment of a part of the foreign currency loans.

In addition, the impact on sensitivity to financial risks may increase as a result of preservation of negative trends in the economy, as well as the reduced solvency of borrowers. Based on the results 2Q 2015, the operations of "APEX - BANK" PJSC were unprofitable, but its performance indicators have remained at a high level.

IBI-Rating does not see any factors that may lead to increasing of the rating grade of bank deposit reliability of "APEX BANK" PJSC in the short term. Lowering of the rating grade of bank deposit reliability is possible in the event of worsening of the Bank’s solvency (liquidity); growth of credit risks due to the deterioration of servicing of the granted loans, the Bank's increased vulnerability to market risks and increased unprofitability, as well as deterioration of the political and economic situation in the country.

Finance department
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