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IBI-Rating has affirmed the credit rating of «BANK CREDIT DNEPR» PJSC at uaA- grade

23.06.2017
Rating agency IBI-Rating informs on affirming of the credit rating of «BANK CREDIT DNEPR» PJSC at uaA- grade, with a «developing» outlook. The rating of bank deposit reliability of«BANK CREDIT DNEPR» PJSC has been affirmed at «4+» grade (high reliability).

«BANK CREDIT DNEPR»PJSC has been operating in the banking market since July 1993. According to the classification of the National Bank of Ukraine, the Bank is in the group of banks with private capital (as per criteria for allocating banks to groups in 2017) and, as at the beginning of April 2017, ranked the 22nd by assets among the 90 solvent banks of Ukraine. 100% of major shareholding in «BANK CREDIT DNEPR» PJSC is owned by Mr. Viktor Pinchuk. The Bank's regional network is represented by 42 branches in 10 oblasts of Ukraine. The bank has a rather large customer base, as well as a developed infrastructure of card business services. The Bank is one of the agent banks of the Deposit Guarantee Fund on payment of compensation to customers of insolvent financial institutions. In two years, the Bank has paid compensations to customers of more than ten bankrupt financial institutions.

The affirmed ratings of «BANK CREDIT DNEPR»PJSC is due to acceptable diversification of the resource base, the existing developed regional network and card business, which contributes to increasing of the customer base and strengthening of positions in the banking market; as well as financial support from the Bank’s owner. Thus, on 21 June 2017, the sole Shareholder of the Bank decided to increase the authorized capital by UAH 1.199b or by 78.8%, to the amount of UAH 2.72b. In turn, the Rating agency notes preservation of significant concentration of the customer loan portfolio by major borrowers, a significant proportion of overdue debt on customer loans, as well as an incomplete balance between assets and liabilities by maturity. At the same time, it should be noted that the Bank has a significant amount of sufficiently stable funds attracted from the companies, which are recognized as related to the Bank, in accordance with the requirements of the regulatory acts of the NBU, having a positive impact on the state of liquidity of the institution.

The key performance indicators are not very high, however, the Rating agency notes their gradual improvement. Thus, by results of Q1 2017, net interest income had a positive value (UAH 63.8m) and contributed to the growth of net operating income up to the amount of UAH 88.3m (versus UAH 7.2m for Q1 of last year). At the same time, taking into account additional allocations to provision for reserves during Q1 of the current year, the financial result of «BANK CREDIT DNEPR» PJSC for the specified period was negative and amounted to (-) UAH 61.6m (versus loss in the amount of over UAH 200m for the similar period of last year).

In order to conduct the analytical research the materials provided by «BANK CREDIT DNEPR» PJSC have been used, including: annual financial statements for 2014-2016 and 3 months of 2017, 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