IBI-Rating has affirmed the credit rating of JSB «UKRGASBANK», the rating outlook is «evolving»

IBI-Rating informs on affirming of the credit rating of JSB «UKRGASBANK» at uaAA grade, the rating outlook is «evolving». The rating of bank deposit reliability has been affirmed at «5+» grade (excellent reliability).

JSB «UKRGASBANK» has been operating in the banking market since January 1999. Since 2009, the key owner of the institution has been the State, which is represented by the Ministry of Finance of Ukraine (almost 95% of the shares). According to the results by 3 months of 2020 among 75 banks, the JSB «UKRGASBANK» ranked 4th position by the size of assets; 6th - by the amount of funds of the individuals; 8th - in terms of balance capital and the 9th - by the amount of generated profit. It should be noted that due to the active development of various banking products and cooperation with the corporate sector, JSB «UKRGASBANK» over the past year, has consistently headed the rank of banks in terms of funds raised from legal entities.

During the period under review, the banking institution has continued to strengthen its market position and currently serves about 1.5 million clients. The client portfolio is diversified by customer category, programs, sectors of the economy and regions. The JSB «UKRGASBANK» has a developed network of branches that cover all oblasts of Ukraine. The bank maintains high capital adequacy values calculated in accordance with the requirements of the Basel Committee. According to the reporting of JSB «UKRGASBANK» on 01.04.2020, the capital adequacy of the first level amounted to 12.9%, and its size on the relevant date - UAH 8.8 billion.

The bank is highly profitable and shows the high performance of its main activity. Comparatively inexpensive resource base has a positive effect on the result of operational activity - the net operating income from the main activity by 2019 and January-March 2020 amounted to UAH 4.8 billion and UAH 1.3 billion, respectively, which is the largest indicator in the last years. The amount of administrative expenditures during the period under review was maintained as acceptable, which led to a high value of the efficiency ratio of almost 195%. The net profit of JSB «UKRGASBANK» in 2019 and the Q1 of 2020 amounted to UAH 1.3 billion and almost UAH 340 million, respectively (UAH 0.8 billion in 2018).

The affirming of the ratings of JSB «UKRGASBANK» is due to the expected accession investment in the capital of a new strategic investor - International Financial Corporation (IFC); the long-term improvement of market positions and diversification of activities through attracting of new customers; high capitalization and liquidity ratios; good quality of assets and sufficient level of provision for bad debts; high performance indicators of the core business, as well as the support by the State. At the same time, the Rating Agency takes into account the concentration of the loan portfolio by major borrowers, maintaining a high sensitivity of the banking system to operational risks due to volatility in the legal field, difficult economic situation, and slowing of business activity due to deteriorating epidemiological situation in the country and imposed of economic and administrative restrictions.

In order to conduct the analytical research, the materials provided by JSB «UKRGASBANK» have been used, including: annual financial statements for 2017-2019 and 3 months of 2020, target performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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