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

Rating agency IBI-Rating informs on affirming of the rating of bank deposit reliability of «FORWARD BANK» PJSC at 5+ grade (excellent reliability). The rating of bank deposit reliability at grade 5+ indicates that the financial institution is reliable, pays timely its obligations 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.

«FORWARD BANK» PJSC has been operating since 2005. At the end of 2015, the Bank's shareholder transferred funds in the amount of UAH 261.8 mln. in order to increase the authorized capital; as at 01.12.2016 these funds are recorded as contributions to the unregistered share capital. The regional branch network of the Bank consists of 20 branches in 8 regions of Ukraine.

The affirmed rating grade of «FORWARD BANK» PJSC is due to the Bank’s preserving of a sufficient capitalization level, the expected increase in the authorized capital of the Bank, as well as improved performance indicators. Funds of the owner and amounts due to customers remain the main component of the resource base. Amounts due to customers are mainly formed by term deposits of individuals, which, on the one hand, increases dependence on the funds of individuals and, on the other hand, determines good diversification of the customer deposit portfolio by major depositors. In turn, it should be noted that the Bank provides services in a rather risky segment (consumer loans), which, given the decline in real incomes of the population, increases vulnerability of «FORWARD BANK» PJSC to credit risk. At the same time, the customer loan portfolio remains well diversified by major borrowers.

The volume of highly liquid assets is at an acceptable level, and their quality remains good. The actual values of economic liquidity ratios exceed the minimum acceptable values established by the NBU. By the results of 11 months of 2016, the Bank’s activity was profitable, though the volume of the financial result was not significant amounting to UAH 1.1 mln.

In order to conduct the analytical research the materials provided by «FORWARD BANK» PJSC have been used, including: annual financial statements for 2013-2015 and 11 months of 2016 , other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.