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)

IBI-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 around 700 thousand customers. In March of the current year, 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 regional network of the bank is represented by 20 branches in 8 regions of Ukraine.

«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 good. 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. Performance indicators of the Bank have improved, which was achieved by increased net interest income, reduced negative results from trading operations, as well as decreased administrative expenses. Despite the formation of a significant amount of reserves for active operations, the Bank's activities by results of 2016 were profitable – net income amounted to UAH 6.2m.

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, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.