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IBI-Rating has affirmed the credit rating of JSC «BTA BANK» at uaA grade
04.03.2020
Rating agency IBI-Rating informs on affirming of the credit rating of JSC «BTA BANK» at uaA, the outlook is «evolving». The rating of bank deposit reliability has been affirmed at «5» grade (excellent reliability).
JSC «BTA BANK» has been operating in the banking market since 1992 and belongs to a group of banks of foreign banking groups according to the criteria of allocating of banks to groups. The sole shareholder of the banking institution is BTA Bank JSC (Kazakhstan), the final beneficiary is a citizen of the Republic of Kazakhstan – Mr. Rakishev Kenes. According to the results of 2019, among 75 banking institutions of Ukraine, JSC «BTA BANK» ranked 68th positions by size of assets, 62nd - by the size of retail deposits, 45th – by the size of balance capital, and 57th place - by the size of financial result. As of the beginning of 2020, the Bank serviced 4.3 thousand clients, including 3.1 thousand individuals.
The regulatory capital of the institution meets the requirements of the NBU, and as of the beginning of 2020 amounted to UAH 304 million. Given the significant reduction of the loan portfolio in recent years and investment in risk-free assets (government securities), the regulatory capital adequacy ratio reached nearly 160% at the beginning of January this year (with a minimum of 10% required). Values of liquidity ratios indicate the high ability of JSC «BTA BANK» to pay their obligations - the actual values of the standards are in several times higher than the minimum required. It should also be noted that JSC «BTA BANK», with a significant reserve, meets the requirements for the value of the liquidity coverage ratio (LCR) introduced by the regulator since the beginning of 2019. During the period under review, the bank's operating profitability indicators improved slightly, which was due to the optimization of administrative expenses, an increase in income from investing in government securities, as well as due to additional income from the revaluation of individual loans and mortgage transactions. As a consequence, according to the results of 2019, JSC «BTA BANK» received a net of almost UAH 10 million, and the efficiency ratio for this period exceeded 130%.
The bank's ratings are preserved by sufficient capitalization indicators, diversification of funding sources by creditors, and high liquidity ratios. At the same time, the Rating agency notes that in the current time bank being the uncertainty of the further development of institution, reducing the diversification of sources of income in view of the significant reduction of the loan portfolio. 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 «BTA BANK» have been used, including: annual financial statements for 2017-2019 years, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Financial Department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
JSC «BTA BANK» has been operating in the banking market since 1992 and belongs to a group of banks of foreign banking groups according to the criteria of allocating of banks to groups. The sole shareholder of the banking institution is BTA Bank JSC (Kazakhstan), the final beneficiary is a citizen of the Republic of Kazakhstan – Mr. Rakishev Kenes. According to the results of 2019, among 75 banking institutions of Ukraine, JSC «BTA BANK» ranked 68th positions by size of assets, 62nd - by the size of retail deposits, 45th – by the size of balance capital, and 57th place - by the size of financial result. As of the beginning of 2020, the Bank serviced 4.3 thousand clients, including 3.1 thousand individuals.
The regulatory capital of the institution meets the requirements of the NBU, and as of the beginning of 2020 amounted to UAH 304 million. Given the significant reduction of the loan portfolio in recent years and investment in risk-free assets (government securities), the regulatory capital adequacy ratio reached nearly 160% at the beginning of January this year (with a minimum of 10% required). Values of liquidity ratios indicate the high ability of JSC «BTA BANK» to pay their obligations - the actual values of the standards are in several times higher than the minimum required. It should also be noted that JSC «BTA BANK», with a significant reserve, meets the requirements for the value of the liquidity coverage ratio (LCR) introduced by the regulator since the beginning of 2019. During the period under review, the bank's operating profitability indicators improved slightly, which was due to the optimization of administrative expenses, an increase in income from investing in government securities, as well as due to additional income from the revaluation of individual loans and mortgage transactions. As a consequence, according to the results of 2019, JSC «BTA BANK» received a net of almost UAH 10 million, and the efficiency ratio for this period exceeded 130%.
The bank's ratings are preserved by sufficient capitalization indicators, diversification of funding sources by creditors, and high liquidity ratios. At the same time, the Rating agency notes that in the current time bank being the uncertainty of the further development of institution, reducing the diversification of sources of income in view of the significant reduction of the loan portfolio. 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 «BTA BANK» have been used, including: annual financial statements for 2017-2019 years, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.
Financial Department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua