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

IBI-Rating informs on affirming of the credit rating of JSC «BANK SICH» at uaA- grade with a «stable» outlook.

JSC «BANK SICH» has been operating in the financial market since 2011 and is in the group of banks with private capital, as per criteria for allocating banks to groups in 2018. Beneficiary owners of the banking institution are 2 private individuals (citizens of Ukraine). According to the results by 9 months of 2018, among 81 banking institutions, JSC «BANK SICH» held 59th positions in terms of assets, 46th - in terms of household funds, 72th - in terms of balance capital, and 60th in terms of profit. During the analyzed period were opened several new branches. At present, the regional network is represented by 44 branches in 12 oblasts of Ukraine, with the largest presence in the metropolitan area and in Cherkasy oblast - respectively 18 and 8 outlets.

According to the results of JSC «BANK SICH» in January-September 2018, the ratio of general administrative expenses to total income of a banking institution was kept at 47%, which extent some limits of the performance indicators. At the same time, the value of the efficiency coefficient remains acceptable - almost 130% on the results of three quarters of the current year. Activities of the banking institution are also kept profitable - the net profit of JSC «BANK SICH» by 9 months of 2018 amounted to almost UAH 3.5 million.

The affirmed credit rating of JSC «BANK SICH» is due to its acceptable liquidity ratios, sufficient capitalization ratios, as well as profitability of work and acceptable performance indicators. Restrictive factors are the availability of concentrations of the resource base and client loan portfolio in the context of major counterparties. The rating of the banking institution also influences by the maintenance of the high sensitivity of the banking system to operational risks, which is 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 SICH» have been used, including: financial statements for 2015-2017 and 9 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.

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