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IBI-Rating has affirmed the credit rating of «FORWARD BANK» PJSC at uaA- grade, and the rating of bank deposit reliability at 5+grade (excellent reliability)
26.09.2017IBI-Rating informs on affirming of the credit rating of «FORWARD BANK» PJSC at uaA- grade, with a «stable» outlook. The rating of bank deposit reliability has been affirmed at 5+ grade (excellent reliability).
«FORWARD BANK» PJSC has been operating since 2005. The bank pays special attention to the segments of consumer lending, card products and deposit programs for the population of Ukraine. As at the beginning of 2017, the customer base had almost 450 thousand customers. In the beginning of July 2017, the National Bank of Ukraine approved amendments to the redrafted Charter of «FORWARD BANK» PJSC and registered an increase in its authorized share capital up to the amount of UAH 540.7m. The Bank is actively developing the provision of services to customers through Internet banking and points of a smaller type. The regional network of the Bank covers all settlements with a population of more than 50 thousand and is represented by 20 branches, 47 mini-offices and an Internet bank.
«FORWARD BANK» PJSC meets its obligations to creditors in a timely manner and in full. The amount of highly liquid assets remains at a sufficient level, and their quality remains acceptable. The actual values of the liquidity ratios are several times higher than the minimum required values; the Bank's assets and liabilities are properly balanced by their terms to maturity. The financial result «FORWARD BANK» PJSC in the first half of 2017 was unprofitable, primarily due to the formation of a significant amount of reserves for active operations - more than UAH 250 m. The negative financial result for January-June of this year amounted to UAH 185.3 m. In turn, it should be noted the stable dynamics of net income operating and an acceptable level of administrative expenses, which indicates the possibility of entering profitable activity in the near future.
The affirmed credit ratings of «FORWARD BANK» PJSC is due to its high liquidity ratios, diversification of the loan and deposit portfolios by major counterparties, as well as financial support of the Bank’s owner in the form of contributions to the authorized capital and long-term loans. In turn, it should be noted that the Bank provides services in a highly risky segment of consumer lending, which, in conditions of a decline in real household incomes, increases vulnerability to credit risk. Also, Rating agency IBI-Rating notes preservation of the difficult situation in the economy limiting the financial capacity of the population and enterprises of the real sector and adversely affecting the level of confidence in banking institutions.
In order to conduct the analytical research the materials provided by «FORWARD BANK» PJSC have been used, including: annual financial statements for 2014-2016 and I half-year of 2017, 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
«FORWARD BANK» PJSC has been operating since 2005. The bank pays special attention to the segments of consumer lending, card products and deposit programs for the population of Ukraine. As at the beginning of 2017, the customer base had almost 450 thousand customers. In the beginning of July 2017, the National Bank of Ukraine approved amendments to the redrafted Charter of «FORWARD BANK» PJSC and registered an increase in its authorized share capital up to the amount of UAH 540.7m. The Bank is actively developing the provision of services to customers through Internet banking and points of a smaller type. The regional network of the Bank covers all settlements with a population of more than 50 thousand and is represented by 20 branches, 47 mini-offices and an Internet bank.
«FORWARD BANK» PJSC meets its obligations to creditors in a timely manner and in full. The amount of highly liquid assets remains at a sufficient level, and their quality remains acceptable. The actual values of the liquidity ratios are several times higher than the minimum required values; the Bank's assets and liabilities are properly balanced by their terms to maturity. The financial result «FORWARD BANK» PJSC in the first half of 2017 was unprofitable, primarily due to the formation of a significant amount of reserves for active operations - more than UAH 250 m. The negative financial result for January-June of this year amounted to UAH 185.3 m. In turn, it should be noted the stable dynamics of net income operating and an acceptable level of administrative expenses, which indicates the possibility of entering profitable activity in the near future.
The affirmed credit ratings of «FORWARD BANK» PJSC is due to its high liquidity ratios, diversification of the loan and deposit portfolios by major counterparties, as well as financial support of the Bank’s owner in the form of contributions to the authorized capital and long-term loans. In turn, it should be noted that the Bank provides services in a highly risky segment of consumer lending, which, in conditions of a decline in real household incomes, increases vulnerability to credit risk. Also, Rating agency IBI-Rating notes preservation of the difficult situation in the economy limiting the financial capacity of the population and enterprises of the real sector and adversely affecting the level of confidence in banking institutions.
In order to conduct the analytical research the materials provided by «FORWARD BANK» PJSC have been used, including: annual financial statements for 2014-2016 and I half-year of 2017, 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