IBI-Rating has affirmed the credit rating of «INDUSTRIAL FINANCIAL BANK» PJSC at uaА- grade and changed the rating outlook

Rating agency IBI-Rating informs about changing of the outlook for «IFB» PJSC credit rating from «stable» to «in development». At the same time, the credit rating of the Banking institution has affirmed at the uaA- grade. The rating of Bank deposit reliability has been affirmed at «4» grade (high reliability).

The changing of the outlook is due to the expected restructuring of the Banking institution under the simplified procedure in accordance with the Resolution of the National Bank of Ukraine No. 48 (dated 08.06.2017) and Law of Ukraine No. 1985-VIII (dated 23.03.2017). This decision should be adopted by the General Meeting of Shareholders of PJSC «PFB» on September 15, 2017. At the same time, according to the interim financial statements, the Bank has high liquidity and capitalization indicators, which allows it to pay off depositors and other customers without attracting additional financing.

The «IFB» PJSC has been operating in the country’s financial market since 1997 and belongs to relatively small banking institutions. Currently, the Bank is represented in Poltava (Kremenchug city) and Kyiv regions, and its customer base comprises about 6 thousand clients (mainly private individuals). In the first half of 2017, the capital of the Banking institution was increased. In the first half of 2017, the capital of the Banking institution was increased. As a result of the implementation of the additional issue of shares, the structure of controlling owners of shareholders has not been changed. Currently, the Bank’s beneficiaries are 2 private individuals (Mr. V.M. Matytsyn and Mrs. T.Yu. Matytsyna). According to the financial statements at the beginning of July 2017, the regulatory capital of the Bank was amounted to UAH 225.7 mln. (the value of the norm Н2=76.65%), the balance capital - UAH 236.9 mln. The quality of assets and the resource base are acceptable. The incomes of the Banking institution in January-June of 2017 corresponded to their level in the corresponding period of the previous year. The final financial result in the indicated period amounted to UAH 6.8 mln, and its reduction (by 45% compared to January-June 2016) was primarily due to the audit of asset quality, growth in administrative expenses, as well as a decrease in income from trading operations.

The Bank’s ratings are supported by high ratios of liquidity and operating efficiency of the institution in the background of a sufficient level of support by the Bank owners. Moreover, the asset quality is preserved at a sufficient level, i.e. the share of overdue and negatively- classified indebtedness in the loan portfolio is insignificant, a substantial amount of funds is placed in highly liquid assets with fixed income. At the same time, «IFB» PJSC remains dependent on its key counterparties (their concentration both in the resource base, and in assets), while a relatively weak market position and a limited level of diversification of activities increases the Bank’s sensitivity to changes in the operating environment. Apart from that, a difficult situation in the economy retains its impact on the «IFB» PJSC ratings, limiting financial capabilities of the population and enterprises of the real sector, as well as affecting adversely the level of confidence to banking institutions.

In addition, according to the Rating agency, at the stage of reorganization the Bank can be subject to additional operational, prudential and financial risks. In order to conduct the analytical research the materials provided «IFB» PJSC has 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.

Financial Department

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