IBI-Rating has affirmed the credit rating of «BANK BOGUSLAV» JSC at uaA- grade

Rating agency IBI-Rating informs on affirming of the credit rating of «BANK BOGUSLAV» JSC at uaA- grade. At the same time, the rating outlook is changed to «negative», the rating is included in the Checklist. The rating of bank deposit reliability has been affirmed at «4» grade (high reliability).

«BANK BOGUSLAV» JSC has been carrying out its activity in the banking market of Ukraine since December 2006. The Bank's shareholders are natural persons – Mr. Romanenko Vladimir Ivanovich and Mrs. Vakulenko Natalia Leonidovna. Due to additional contributions of shareholders in the II quarter of this year, the authorized capital was increased up to UAH 210 m. The Head office of «BANK BOGUSLAV» JSC is located at the address: 81 Nizhneurkovskaya St., Kiev. As of the end of the first half of the 2017 year, the bank was represented by 12 branches (8 branches in Kiev, 3 branches - in Odessa and 1 - in the Ivano-Frankivsk regions respectively). The customer base of the Bank has more than 11 thousand customers, including 1.3 thousand legal entities.

As of 01.07.2017, «BANK BOGUSLAV» JSC had a significant stock of deviations in accordance with the liquidity standards - the actual values of the standards as of that date more than twice exceeded the minimum required values. The regulatory capital meets the NBU requirements and, at the beginning of July 2017, amounted to UAH 182.4 m. In turn, the Rating Agency notes that according to the results of the check by the National Bank of Ukraine in September of the current year, the amounts of collateral for individual loans were adjusted. Accordingly, by increasing the amount of credit risk, the regulatory capital of «BANK BOGUSLAV» JSC decreased to a smaller size than required by the regulator. At present, the bank has developed and provided to the regulator a Capitalization / Restructuring Plan.

During January-June of the 2017, the bank's indicators remained at a acceptable level, which was facilitated by the increase in net interest income with a relatively low level of administrative expenses. The company's net profit for the first half of this year amounted to UAH 2.7 m, and the efficiency ratio exceeded 220%.

The Bank’s ratings are maintained by keeping acceptable liquidity ratios, including through balancing of assets and liabilities by terms to maturity, as well as improved performance indicators. At the same time, sensitivity to credit risk and liquidity risk persists, due to high concentration of the customer loan portfolio by major borrowers and concentration of the deposit portfolio by major depositors. Also, the Rating agency notes a significant reduction in regulatory capital in September this year and preservation of the difficult situation in the economy limiting the financial capacity of the population and enterprises of the real sector and adversely affecting the level of confidence in banking institutions.

In order to conduct the analytical research the materials provided by «BANK BOGUSLAV» JSC have been used, including: annual financial statements for 2014-2016 and first half 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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