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IBI-Rating has affirmed the credit rating of JSC «CREDITWEST BANK» at uaAA+ grade, the rating outlook is «evolving»
03.07.2020
IBI-Rating informs on affirming of the long-term credit rating of JSC «CREDITWEST BANK» at uaAA+ grade; the rating outlook is «evolving». Also, the rating of bank deposit reliability has been affirmed at «5+» grade (excellent reliability).
JSC «CREDITWEST BANK» was registered by the National Bank of Ukraine in October 2006 and belongs to a group of banks of foreign banking groups. The shareholder of the bank is a foreign company JSC «ALTINBAS HOLDING ANONIM SIRKETI» (Turkey). The bank is guided by the policy of continuous reinvestment of profits in the authorized capital, which contributes to the gradual growth of the market share and high financial stability of the banking institution. As of the end of the Q1 of 2020, the regulatory capital of the institution amounted to UAH 371.3 million, of which 100% was Tier 1 capital. JSC «CREDITWEST BANK» complies with the requirements of current legislation on the amount of authorized and regulatory capital and has a sufficient margin of deviations in capital ratios for further development. In particular, the actual value of the H2 standard as of April 1, 2020, was almost three times higher than the minimum set by the regulator. Liquidity indicators are also maintained at a high level.
Following the results of January-March 2020, among 75 banks of Ukraine, the JSC «CREDITWEST BANK» was in 48 positions by the amount of assets; 49 - by funds of corporates; 50 - by population's funds; 38 - by balance capital, and 35 - by profit. The bank maintains a competitive product line in the corporate segment, primarily serving the trading partners of Turkish enterprises.
JSC «CREDITWEST BANK» is highly profitable, performance ratios are maintained at a high level. In particular, the efficiency ratio of the bank during the analyzed period remained at 150-165%, and net profit for 2019 and the Q1 of 2020 amounted to UAH 28.2 million and UAH 8.3 million, respectively.
The affirmed ratings of JSC «CREDITWEST BANK» is due to maintaining high liquidity and capitalization of the financial institution, and the bank's membership in the Turkish financial-industrial group Altinbas, which specializes in precious metals, energy, logistics, finance, real estate and education. The bank demonstrates profitable activity and sufficient performance indicators. At the same time, the concentration of the resource base and loan portfolio is maintained in the context of key counterparties, which increases the institution's sensitivity to liquidity and credit risks. Also, the ratings of the banking institution are affected by the preservation 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 slowdown in business activity due to the deteriorating epidemiological situation in the country and the imposed of economic and administrative restrictions.
In order to carry out the analytical research the materials obtained from «CREDITWEST BANK» PJSC have been used, including: 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.
Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
JSC «CREDITWEST BANK» was registered by the National Bank of Ukraine in October 2006 and belongs to a group of banks of foreign banking groups. The shareholder of the bank is a foreign company JSC «ALTINBAS HOLDING ANONIM SIRKETI» (Turkey). The bank is guided by the policy of continuous reinvestment of profits in the authorized capital, which contributes to the gradual growth of the market share and high financial stability of the banking institution. As of the end of the Q1 of 2020, the regulatory capital of the institution amounted to UAH 371.3 million, of which 100% was Tier 1 capital. JSC «CREDITWEST BANK» complies with the requirements of current legislation on the amount of authorized and regulatory capital and has a sufficient margin of deviations in capital ratios for further development. In particular, the actual value of the H2 standard as of April 1, 2020, was almost three times higher than the minimum set by the regulator. Liquidity indicators are also maintained at a high level.
Following the results of January-March 2020, among 75 banks of Ukraine, the JSC «CREDITWEST BANK» was in 48 positions by the amount of assets; 49 - by funds of corporates; 50 - by population's funds; 38 - by balance capital, and 35 - by profit. The bank maintains a competitive product line in the corporate segment, primarily serving the trading partners of Turkish enterprises.
JSC «CREDITWEST BANK» is highly profitable, performance ratios are maintained at a high level. In particular, the efficiency ratio of the bank during the analyzed period remained at 150-165%, and net profit for 2019 and the Q1 of 2020 amounted to UAH 28.2 million and UAH 8.3 million, respectively.
The affirmed ratings of JSC «CREDITWEST BANK» is due to maintaining high liquidity and capitalization of the financial institution, and the bank's membership in the Turkish financial-industrial group Altinbas, which specializes in precious metals, energy, logistics, finance, real estate and education. The bank demonstrates profitable activity and sufficient performance indicators. At the same time, the concentration of the resource base and loan portfolio is maintained in the context of key counterparties, which increases the institution's sensitivity to liquidity and credit risks. Also, the ratings of the banking institution are affected by the preservation 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 slowdown in business activity due to the deteriorating epidemiological situation in the country and the imposed of economic and administrative restrictions.
In order to carry out the analytical research the materials obtained from «CREDITWEST BANK» PJSC have been used, including: 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.
Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua