IBI-Rating has affirmed the credit rating of «SBERBANK» PJSC at uaAA+ grade

IBI-Rating informs on affirming of the credit rating of «SBERBANK» PJSC at uaAA+ grade with a «negative» outlook and keeping the rating on the Credit Watch List. Also, the rating of bank deposit reliability has been affirmed at «5» grade (excellent reliability).

The affirmation of the ratings of «SBERBANK»PJSC is due to high indicators of operational efficiency, strong market positions, as well as diversification of directions of investment of funds and sources of attraction of resources. Apart from that, when upgrading the ratings, a significant amount of funding from related structures was taken into account, which, in the opinion of the Rating agency, will continue even after changing the owners of the bank. At the same time, concentration of the customer loan portfolio by major borrowers is kept, which along with a significant amount of adversely classified assets, increases the Bank’s vulnerability to credit risk. Also, the Bank’s ratings are affected by preservation of the difficult situation in the economy, the expected change of owners of the banking institution and uncertainty of its development strategy.

Keeping of the credit rating on the Credit Watch List is due to the entry into force of the Decision of the National Security and Defense Council of Ukraine, taken on 15 March 2017, on «Personal Special Economic and Other Restrictive Measures (Sanctions)» with regard to Ukrainian banks with the Russian state capital. It should be noted that at the end of March of the current year, the information was placed on the official website of the sole shareholder of the bank – «SBERBANK» PJSC (the Russian Federation), about an agreement being concluded for the sale of «SBERBANK» PJSC. In April 2017, the Regulator received a set of documents from a consortium of foreign investors (for approval of change of owners).

«SBERBANK» PJSC is a systemic banking institution. The Bank holds strong market positions and serves both the population and enterprises of various sectors of the economy in different regions of the country; as of the beginning of 2017, the bank served more than 1.1m customers; the bank’s regional network had about 130 operating branches. The bank's capitalization is maintained at a moderate level, taking into account the available schedule of capitalization improvement, which was agreed with the NBU. In 2016, another increase in the authorized capital was registered (up to the amount of UAH 12.465bn). At the same time, according to results of the audit of quality of assets, bank recorded in the statements of 2016 a significant amount of losses due to rising expenses on provisions for reserves, – loss for the past year amounted to UAH 2.8bn. In turn, by results of the first quarter of 2017, the bank generated profit in the amount of UAH 44.3m.

In order to conduct the analytical research the materials provided by «SBERBANK» PJSC have been used, including: financial statements based on the results of 2014-2016 and 3 months of 2017 , target performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Finance department

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