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IBI-Rating has affirmed the credit rating of PJSCB «Lviv» at uaA- grade with «in development» outlook

04.12.2018
IBI-Rating informs on affirming of the credit rating of PJSCB «Lviv» at uaA- grade, with «in development» outlook. The rating of bank deposit reliability has been affirmed at «5» grade.

PJSCB «Lviv» has been working in the banking market since October 1991. In September 2017, PJSCB «Lviv» submitted the necessary documentation to the National Bank of Ukraine for the approval of the investment of a new strategic shareholder - Swiss Asset Management Company ResponsAbility Participations AG (is a leading asset management company in the field of investment, which provides financing through borrowing and financing from its own resources in emerging economies; shareholders of the company are a group of reputable institutions in the Swiss financial market).

As at the beginning of October 2018, the registered authorized capital of PJSCB «Lviv» amounted to UAH 338.9 million. The main shareholder of the institution is LLC New Progress Holding (Ukraine), which owns 49.58% of the shares. The ultimate beneficiary is an individual, a citizen of Iceland - Margeir Petursson. As of 01.10.2018, the Swiss investor owned 40.44% of the bank's shares. In June 2018, the General Shareholders Meeting of PJSCB «Lviv» decided to increase the authorized capital on UAH 99.5 million by private placement of additional shares (as at the beginning of November this year, contributions were accounted for on the respective balance sheet account). After registration of changes in the Charter of the institution, the authorized capital will amount to UAH 438.4 million. In addition, of contributions to the authorized capital, the new investor provided the banking institution with resources for further lending to clients and also placed additional funds on subordinated debt terms.

The ratio of administrative expenses of the bank to total revenues during the analyzed period remained significant. However, the growth of commission and interest income contributed to the positive dynamics of net operating income (+ 44% compared to 9 months of the previous year), maintaining the efficiency of the institution at an acceptable level - more than 120%, as well as receiving net profit in the amount of over 11 million according to the results of January-September 2018.

The affirming of the ratings grade of PJSCB «Lviv» is due to the presence of financial support from shareholders, positive dynamics of the main financial indicators, acceptable diversification of the resource base in terms of sources of financing, creditors and sectors of the economy. In addition, it should be noted profitable activities of the institution, sufficient indicators of liquidity and efficiency of activities. At the same time, the Rating agency indicates the presence of a concentration of client's loan portfolio by major borrowers, an incomplete balance between assets and liabilities by maturity, maintaining the high sensitivity of the banking system to operational risks due to the volatility of the legislative field, the difficult situation in the economy, the introduction of the martial law regime in some regions of Ukraine, 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 PJSCB «Lviv» 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.

Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua