IBI-Rating has upgraded credit rating of «Ukrgasbank» JSB

IBI-Rating informs on upgrading of the credit rating of АБ «Ukrgasbank» JSB to uaAA– grade keeping the «stable» outlook. The rating of bank deposit reliability has been affirmed at «5+» grade (excellent reliability).

«Ukrgasbank» JSB has been operating in the banking market since January 1999. According to the classification of the National Bank of Ukraine, the institution belongs to state-owned banks, ranking, as of the beginning of April 2017, the 4th banking institution by size of assets and funds of enterprises; the 7th banking institution –by size of funds of population, the 6th banking institution – by size of the balance capital, the 20th banking institution – by amount of generated profit, respectively. Since 2009, the main owner of «Ukrgasbank» JSB has been the state represented by the Ministry of Finance of Ukraine (as at 01.04.2017, the share of the Ministry of Finance of Ukraine in the capital of the banking institution accounted for almost 95%).

During the period under review, the banking institution has strengthened its market position and currently serves about 800 thousand customers. The customer base is diversified by customer category, programmes, sectors of the economy and regions. The regional network consists of 232 operating branches, located in all regions of Ukraine. As at 01.04.2017, regulatory capital of the banking institution amounted to UAH 4.82bn, net assets and balance capital amounted to UAH 63.79bn and UAH 5.04bn, respectively. The deposit base increased over the last half-year (mainly through attracting funds from enterprises and population) and through simultaneous reduction in debts on the NBU loans. The bank’s profit for 2016 amounted to UAH 293.7m, net operating income from core activities amounted to UAH 1 602.5m; for January-March 2017 – UAH 21.5m and UAH 594.3m, respectively.

A positive impact on the credit rating grade of «Ukrgasbank» JSB have, as follows: improved market positions and diversification of activities through attracting of new customers, high capitalization and liquidity ratios, acceptable performance indicators of the core activity, as well as the support by the State. At the same time, the Agency takes into account preservation of the concentration of the loan portfolio by major borrowers, which along with a significant amount of adversely classified assets increases the Bank’s vulnerability to credit risk. It should also be noted that preservation of the difficult situation in the economy limits the financial capacity of the population and enterprises of the real sector, adversely affecting the level of confidence in banks.

In order to conduct the analytical research the materials provided by «Ukrgasbank» JSB 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.