IBI-Rating has affirmed the credit rating of JSC «CRYSTALBANK» at uaA+ grade with a «stable» outlook

IBI-Rating informs on the affirming of the long-term credit rating of JSC «CRYSTALBANK» at uaA+ grade with a «stable» outlook.

JOINT-STOCK COMPANY «CRYSTALBANK» is the first bank in Ukraine which created by Deposit Guarantee Fund with the status of «Transition Bank». The Bank is the assignee of PJSC «TERRA BANK», which was declared insolvent in August 2014. In March 2015, the bank lost status of a «Transition Bank» and received a full banking license for the right to provide all banking services for legal entities and individuals under the current legislation. Banking institution belongs to the group of banks with private capital in accordance with the criteria for the allocation of banks into groups approved by the NBU. The shareholders are three individuals, residents of Ukraine.

Over the past three years, the bank's market share has noticeably increased - by the results of the first half of 2019, among 76 banking institutions of Ukraine JSC «CRYSTALBANK» ranked 45th position in terms by volume of asset; 49th - by population's funds; 34th - by corporate deposits; 53rd - by balance capital and 50th place - in terms by financial results. Now the bank is actively developing cooperation with the population, providing, in particular, mortgage lending services, which helps to improve the diversification of active operations in the context of counterparties. JSC «CRYSTALBANK» is gradually increasing its presence in the market - during the first half of the current year, the regional network was expanded by 3 branches, and the number of oblasts in which the bank was represented was expanded by 1 - Lvivska oblast. Accordingly, as at the beginning of July the regional network of JSC «CRYSTALBANK» is represented by the Head Office in Kyiv, as well as 26 branches in 9 oblasts of Ukraine.

A banking institution has sufficient margin of deviations for most economic standards. In particular, the regulatory capital adequacy ratio (H2) as on the 1st of July 2019 was more than 41% (with the minimum required 10%), and the actual values of liquidity ratios (H4, H5, H6) at the relevant date were around 100 %. It should also be noted that, JSC «CRYSTALBANK» with a significant margin fulfills the requirements regarding the value of the liquidity ratio (LCR), set by the regulator at the beginning of 2019. The performance indicators of the banking institution in the analyzed period were under pressure from additional expenses for forming reserves for active operations, but remained at a sufficient level and testified to the acceptable ability of JSC «CRYSTALBANK» to generate capital through operating results while maintaining the good quality of earning assets. In particular, according to the results of the first half of 2019, the level of administrative expenses coverage with net operating income (efficiency ratio) exceeded 130%, and net profit amounted to UAH 7.9 mln.

Affirming of the credit rating grade of JSC «CRYSTALBANK» is due to sufficient indicators of the institution's capitalization, insignificant level of bad debts in the structure of working assets, sufficient indicators of efficiency and profitable operating activities. The Rating Agency also notes high liquidity ratios, which are secured by a significant amount of assets in the form of risk-free investments in government securities. In turn, the structure of liabilities retains a significant amount of demand deposits, which, against the background of the concentration of active and passive operations in the context of the main counterparties, increases the sensitivity to liquidity risk. The institution's rating is also influenced by the sensitivity of the banking system to operational risks, which is due to transformational processes in the economy, as well as by the instability of the legislative field.

In order to conduct the analytical research the materials provided by JSC «CRYSTALBANK» have been used, including: financial statements for 2016-2018 years 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.

Financial department
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