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IBI-Rating has affirmed the rating of bank deposit reliability of «FIRST INVESTMENT BANK» PJSC at 4+ grade
10.10.2016IBI-Rating informs on affirming of the rating of bank deposit reliability of «FIRST INVESTMENT BANK» PJSC at 4+ grade (high reliability). 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 affirmation of the rating of bank deposit reliability of «FIRST INVESTMENT BANK» PJSC is due to its preserving the sufficient level of capital ratios. The volume of highly liquid assets is high (over 25% of the assets), and their quality is satisfactory as they are mainly formed by account balances in current accounts at other banks. However, the existing dependence of the Bank on major corporate customers both in the resource base and in the asset structure, may put pressure on the Bank's liquidity and increases its susceptibility to certain financial risks.
It should be noted that during the period under review, «FIRST INVESTMENT BANK» PJSC remained dependent on the financial condition of a small number of borrowers, increasing the Bank’s vulnerability to credit risk. The Bank is also susceptible to foreign currency risk because of a significant amount of foreign currency denominated loans and a lack of foreign currency earnings of borrowers. In addition, the impact on sensitivity to certain financial risks may increase as a result of persisting negative tendencies in the country’s economy and reduced solvency of borrowers. Amounts due to customers remain the main component of the resource base.
By results of January-August 2016, the Bank’s activity was profitable, positively affecting its performance indicators.
IBI-Rating currently sees no factors that may lead to upgrading of the Bank’s rating of bank deposit reliability in the short term. Downgrading of the rating of bank deposit reliability is possible in the event of worsening of the Bank’s solvency (liquidity); increased credit risks due to deterioration of servicing of the granted loans, increased vulnerability of the Bank to market risks, decrease in performance indicators, as well as deterioration of the political and economic situation in the country.
In order to conduct the analytical research the materials provided by «FIRST INVESTMENT BANK» PJSC have been used, including: annual financial statements for 2013-2015 and 9 months of 2016 , other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Financial Department.
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
The affirmation of the rating of bank deposit reliability of «FIRST INVESTMENT BANK» PJSC is due to its preserving the sufficient level of capital ratios. The volume of highly liquid assets is high (over 25% of the assets), and their quality is satisfactory as they are mainly formed by account balances in current accounts at other banks. However, the existing dependence of the Bank on major corporate customers both in the resource base and in the asset structure, may put pressure on the Bank's liquidity and increases its susceptibility to certain financial risks.
It should be noted that during the period under review, «FIRST INVESTMENT BANK» PJSC remained dependent on the financial condition of a small number of borrowers, increasing the Bank’s vulnerability to credit risk. The Bank is also susceptible to foreign currency risk because of a significant amount of foreign currency denominated loans and a lack of foreign currency earnings of borrowers. In addition, the impact on sensitivity to certain financial risks may increase as a result of persisting negative tendencies in the country’s economy and reduced solvency of borrowers. Amounts due to customers remain the main component of the resource base.
By results of January-August 2016, the Bank’s activity was profitable, positively affecting its performance indicators.
IBI-Rating currently sees no factors that may lead to upgrading of the Bank’s rating of bank deposit reliability in the short term. Downgrading of the rating of bank deposit reliability is possible in the event of worsening of the Bank’s solvency (liquidity); increased credit risks due to deterioration of servicing of the granted loans, increased vulnerability of the Bank to market risks, decrease in performance indicators, as well as deterioration of the political and economic situation in the country.
In order to conduct the analytical research the materials provided by «FIRST INVESTMENT BANK» PJSC have been used, including: annual financial statements for 2013-2015 and 9 months of 2016 , other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Financial Department.
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua