IBI-Rating has affirmed the credit rating of JSC «BANK ?» at uaA– grade with a «stable» outlook

IBI-Rating informs on affirming of the credit rating of JSC «BANK ¾» at uaA– grade, with a «stable» outlook. The rating of bank deposit reliability has been affirming at «4+» grade (high reliability).

JSC «Bank ¾» has been operating in the financial market since 2008 and belongs to a group of banks with private capital in accordance with the criteria for segregation banks to groups. The only one shareholder of the bank is Mr. Ishchenko V.A. (Chairman of the Board).

As of 01.07.2019, the regulatory capital of the bank amounted to almost UAH 464 million, of which 100% is a Tier 1 capital. The institution has a significant margin of deviation by most of the prudential ratios. In particular, the regulatory capital adequacy ratio is more than in 10 times higher than the level set by the regulator, and the actual values of liquidity ratio as of 01.07.2019 exceeded the minimum required by more than in 20 percentage points. It should also be noted that JSC «Bank ¾», with a significant margin, fulfills the requirements for the value of Liquidity Coverage Ratio (LCR), which has been implemented by the regulator since the beginning of 2019.

JSC «BANK ¾» is highly profitable, as evidenced by the financial result of the institution and performance indicators in recent years. Thus, according to the results of 2018, the net operating income of the bank amounted to over UAH 330 million, net profit amounted to UAH 46.7 million. Given the increase in administrative expenses in the first half of this year, performance indicators decreased slightly, however, they remain at an acceptable level - in January-June 2019, the net profit amounted to UAH 10.3 million, and the efficiency ratio (the level of administrative expenses covering by operating income from the main activity) was 110%.

Affirming of JSC «BANK ¾» credit rating is due to the high ratios of capitalization, liquidity and effectiveness of core activities while maintaining good quality of working assets. At the same time, the Rating Agency notes the preservation of the concentration of the loan portfolio, as well as the resource base in the context of key counterparties. The ratings of the banking institution are also affected by the preservation of the high sensitivity of the banking system to operational risks, due to the volatility of the legislative field, the difficult situation in the economy, as well as the limited financial capacity of the population and enterprises of the real sector.

In order to conduct the analytical research the materials provided by JSC «BANK ¾» have been used, including: financial statements based on the results of 2016-2018 and the first half of 2019, 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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