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IBI-Rating has affirmed the credit rating of PJSC «BANK CREDIT DNEPR» at uaA- grade, with a «positive» outlook

02.07.2018
Rating agency IBI-Rating informs on affirming of the credit rating of PJSC «BANK CREDIT DNEPR» at uaA- grade with a «positive» outlook. The rating of bank deposit reliability of PJSC «BANK CREDIT DNEPR» has been affirmed at «4+» grade (high reliability).

PJSC «BANK CREDIT DNEPR» has been operating in the banking market since July 1993. According to the classification of the National Bank of Ukraine, the Bank is in the group of banks with private capital and as at the beginning of April 2018, ranked the 21st by assets among the 84 banks of Ukraine. The only one shareholder of the Bank is the «Brancroft Enterprises Limited», which indirectly belongs to Victor Pinchuk. The Bank's regional network is represented by 39 branches in 9 oblasts of Ukraine. The Bank has a rather large customer base, as well as a developed infrastructure of card business services. The Bank is one of the agent banks of the Deposit Guarantee Fund on payment of compensation to customers of insolvent financial institutions. During last two years, the Bank has paid compensations to customers of more than ten bankrupt financial institutions. During the analyzed period, the bank actively developed hryvnia retail lending and lending to agribusiness clients.

The affirmed credit rating with «positive» outlook and rating of bank deposit reliability of PJSC «BANK CREDIT DNEPR» is due to acceptable diversification of the resource base, the existing developed regional network and card business, which contributes to increasing of the customer base and strengthening of positions in the banking market; as well as financial support from the Bank’s owner. Thus, on the third quarter of previous year, the Shareholder has transferred funds to increase the authorized capital in the amount of UAH 1.2 b. At present, funds are accounted for in the account of contributions for unregistered authorized capital, the process of approval the registration of capital increase is at the final stage. Also, the Shareholder of PJSC «BANK CREDIT DNEPR» concluded a surety agreement with the Bank, under which accepted the obligation to guarantee the execution of problem debtors of the Bank under loan agreements in the amount of USD 13.7 million, and placed in the bank the appropriate amount of money coverage. The Shareholder intends to convert these guarantee deposits into the authorized capital by the end of the year during the next issue of shares. Additionally, it should be noted, that due to diversification of the resource base and reduction of borrowing from the population, the Bank lost the status of «saving», which eliminates the need to comply with the increased requirements for certain ratios.

At the same time, the Rating agency notes preservation of significant concentration of the customer loan portfolio by major borrowers, a significant proportion of overdue debt on customer loans, as well as an incomplete balance between assets and liabilities by maturity. In turn, it should be noted that the Bank has a significant amount of sufficiently stable funds attracted from the companies, which are recognized as related to the Bank, in accordance with the requirements of the regulatory acts of the NBU, having a positive impact on the state of liquidity of the institution.

The main indicators of the Bank's performance are kept low and substantially depend on the quality of assets and the result of trading operations. According to the results of 2017 net operating income was positive and amounted to UAH 362.5 million; the coefficient of efficiency at the same time reached a mark of almost 96%. In turn, due to a decrease of net interest income and a negative result from the change of a long-term foreign currency position at the revaluation of the hryvnia in the first quarter of 2018, net operating income was amount to (-) UAH 50.4 million, which, together with a relatively stable administrative expenses, resulted in negative values of the efficiency ratio and explains the net loss for this period in the amount of UAH 116.8 million.

In order to conduct the analytical research the materials provided by PJSC «BANK CREDIT DNEPR» have been used, including: annual financial statements for 2015-2017 and 3 months of 2018, target performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua