IBI-Rating has affirmed the credit rating of PJSC «BTA BANK» at uaA grade

Rating agency IBI-Rating informs on affirming of the credit rating of PJSC «BTA BANK» at uaA with a «stable» outlook. The rating of bank deposit reliability has been affirmed at 5 grade (excellent reliability).

PJSC «BTA BANK» has been operating in the banking services market since 1992 and belongs to the group of banks of foreign banking groups, as per the NBU criteria for allocating banks to groups in 2017. At the beginning of July 2017, among 88 solvent banks, the Bank ranked 35th by assets, 70th by the size of legal entities, 55th by the size of the population's funds and 17th by the size of the balance capital. The Bank serves more than 12 thousand customers, of which 10,8 thousand are individuals. In July 2017, BTA Bank JSC (Kazakhstan) concentrated 100% of its participation in the Bank's capital. The ultimate beneficiary is a citizen of the Republic of Kazakhstan – Mr. Rakishev Kenes, who owns 93.285% of the shares of BTA Bank JSC (Kazakhstan).

According to the reporting, as at 01.07.2017, the regulatory capital of the Bank amounted to UAH 1.64 bln. (value of N2 ratio was 86.18%), the balance sheet capital amounted to UAH 1.65 bln. The structure of net assets consists primarily of the investment property (UAH 1.22 bln.) and investments in Treasury securities (UAH 173.8 mln.), as well as debts of enterprises. The total income of PJSC «BTA BANK» for the first half of 2017 was UAH 163.9 mln., which corresponds to the result of the same period of the previous year. The expenses of the PJSC «BTA BANK» in the first half of 2017 amounted to UAH 172 mln. which is in 30% higher than the cost of the Institution for the same period of previous year and is due mainly to significant expenses from revaluation of investment properties. The owner’s equity exceeds significantly the loan and investment portfolio, allowing to minimize credit and currency risks. Operating profitability indicators remain low, which is caused by limited quality of the loan portfolio and increased market factors. The financial result of PJSC «BTA BANK» in the first half of this year was negative (UAH -8 mln.).

The bank ratings are supported by high ratios of capitalization, diversified revenue sources, as well as diversification of the resource base by creditors, currencies and components. At the same time, the value of performance indicators of core activities remains low, while sensitivity of financial results to changes in the market situation remains high. The quality of the loan portfolio and corporate securities is limited increasing the Bank’s sensitivity to credit risk. In addition, a difficult situation in the economy persists limiting financial capabilities of the population and enterprises of the real sector and affecting adversely the level of confidence to banking institutions.

In order to conduct the analytical research the materials provided by «BTA BANK» JSC have been used, including: annual financial statements for 2014-2016 and I half-year of 2017, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial Department
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